California lawmakers recently passed a significant bill to boost local journalism, known as the Community News Act, or Assembly Bill 2222. This measure could send over $40 million each year to news organizations statewide, marking one of the largest state investments in community journalism in the country.

The bill passed the California Senate on August 30 with a vote of 29-10 and received approval from the Assembly the following day, 54- Originally, the Assembly approved it by a larger margin of 63-10 in May, but Senate amendments sent it back for further review.

Now, the bill awaits Governor Gavin Newsom’s decision, who had not announced his plans as of September 1.

Assemblymember Christopher Ward from San Diego and Assemblymember Buffy Wicks from Oakland authored AB 2222. If signed into law, the bill would offer refundable tax credits to qualifying local news organizations. This means that even if a news organization owes less in taxes than the credit it qualifies for, it can still receive the full amount back.

This program is set to begin for tax years starting January 1, 2027, and will run until the end of 2031. Under the new law, an organization could earn a $20,000 credit for each of its first five full-time journalists and $15,000 for every additional full-time journalist. There’s also a $7,500 credit available for part-time journalists, along with an extra $15,000 credit for each new journalism position that gets filled.

The goal of this legislation is to support local journalists rather than funding specific stories or viewpoints. To qualify, organizations must operate a recognized news outlet, either digital, print, or broadcast, and disclose their ownership or board of directors if they’re a nonprofit.

Supporters believe this measure is crucial as local news faces serious challenges. Since 2005, California has seen more than 40% of its newspapers close down. Newsrooms are shrinking, and advertising revenue has plummeted, making it hard for local journalists to cover important community issues.

While the potential cost to the state is significant, with estimates exceeding $40 million annually, the actual financial impact will depend on how many organizations and journalists take part in the program.

This bill has drawn support from a variety of groups advocating for local news, publishers, and journalism organizations. The goal is to help newsrooms retain current journalists and create new positions without government interference in editorial choices.

However, critics raise concerns about government funding of journalism and fear that it might lead to government influence over what news gets reported. Supporters argue that because the tax credit is based on employment, it keeps the focus on supporting journalists without dictating the coverage.

For many California communities, like Fullerton, local journalism is vital. Local newspapers cover important topics such as city council meetings, schools, public safety, and neighborhood issues that larger news outlets might overlook.

This bill does not guarantee that every local news outlet will receive funds, nor does it promise that they will expand their coverage. Instead, it provides a financial incentive tied to hiring qualified journalists.

As the deadline for Governor Newsom’s decision approaches, the future of California’s local journalism hangs in the balance. If he signs the Community News Act, it will create a new statewide program to preserve and expand journalism that serves communities across California.