Gavin Newsom signs local newsroom subsidy bill in Sacramento

Gov. Gavin Newsom approved legislation on Wednesday in Sacramento to support local newsrooms across the state. The measure creates a refundable tax credit program that will provide millions of dollars to eligible news organizations. It covers print, television and digital outlets.

The new program distributes funds through specific tax credits:

• $20,000 credit for each of the first five journalists employed
• $15,000 credit for each additional journalist and new hire
• $7,500 credit for each eligible part-time journalist

Newsom said the benefits of Assembly Bill 2222 far outweigh his concerns about the plan. He cited recent actions by President Donald Trump.

“I could have vetoed it, but at this moment of anxiety and stress , everything that Donald Trump is trying to do , I couldn’t do that,” the governor said at a news conference in Sacramento, calling the president’s recent actions an “assault on the First Amendment.”

The California News Publishers Association stated on social media that the bill will help outlets hire and retain journalists. SAG-AFTRA President Sean Astin called the move a win for quality journalism.

Research shows more than 12,000 journalists in California lost their jobs since 2002. Newsom said partisan groups fill the void when local reporting disappears. He added that the law benefits even partisan groups because the First Amendment demands equal treatment.

Newsom expressed concerns about the long-term costs of the uncapped program. He noted that hedge funds and billionaires owning news outlets qualify for the credits.

State legislation becomes law following a governor’s signature. Lawmakers may pass future amendments to modify funding caps or program rules.

Wednesday marked the final bill signing ceremony for Newsom in Sacramento before he leaves office. He said he hopes the next governor and the Legislature refine the measure in 2027.