California Governor Gavin Newsom (pictured above) signed a first-of-its-kind tax credit aimed at preserving local journalism. More than 180 news and media organizations had joined a campaign urging him to act before the September 30, 2026 deadline.
According to the News/Media Alliance, California has lost more than 12,000 local journalists since 2002, and argued that employment credits would give news organizations additional resources to retain reporters and rebuild local coverage.
The program would direct more than $40 million annually toward local news organizations, funded by eliminating a California corporate tax break for executive compensation exceeding $1 million.
The media coalition that advocated for legislative Bill AB-2222 views California as setting a potential precedent. In communications to Newsom, the group highlighted that AB-2222 could serve as a model in states where payroll tax credits are already an accepted tool for encouraging employment in the journalistic fields. The campaign support extends beyond California. More than 180 local, state, and national organizations had joined in, calling on Newsom to sign AB-2222, including newspapers and press associations spanning from Arizona and Arkansas to New York, Texas, and Washington.
Passed by the California State Legislature in August 2026, AB-2222 — officially titled the Community Newsroom Employment and Workforce Sustainability Act (or “Community NEWS Act”) — would create refundable state tax credits to help local news organizations hire and retain staff. For California broadcasters, the bill would provide up to $20,000 per journalist for as many as five positions each year, plus $15,000 for each additional journalist. It would also provide $15,000 credits for new hires and $7,500 for part-time journalist positions.
The credits would apply across media and business models rather than being limited to newspapers or nonprofit newsrooms. Supporters emphasize that the program would use objective eligibility requirements rather than government oversight of editorial content, making AB-2222 strictly “news-neutral.”
According to the media coalition behind AB-2222, the legislation recognizes the breadth of California’s news industry, including “large and small publishers, print and digital outlets, broadcasters, nonprofits, and for-profit organizations.”
Leave A Comment