Tens of millions flow into local news as public policy becomes journalism’s fourth leg

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Editor's Note:

Since this interview was recorded, Maryland Gov. Wes Moore has vetoed legislation that would have required 50% of the state’s advertising spending to be directed to local news organizations. Steven Waldman references the proposal during this conversation as an example of growing state-level efforts to support local journalism through public policy.

For years, local journalism’s sustainability conversation has centered on advertising, subscriptions and philanthropy. But Steven Waldman, president and co-founder of Rebuild Local News, says a fourth support is now becoming real: public policy. “Yes, I think we’re there,” Waldman said, adding that “no one is suggesting that public policy become the only or even main support to this, but it is, in fact, an important leg of the stool now.”

That shift is central to Rebuild Local News’ inaugural annual report, which tracks growing state-level support for local journalism through tax credits, government advertising requirements, fellowships and other policy tools. Waldman said the market can still sustain local news “in lots of places or portions of it,” but he added that some journalism now needs broader civic support. “Some aspects of local news are basically a public good and they’re really important to communities, and they might not be entirely supported sufficiently by earned revenue,” he said. “And in cases like that, you need philanthropy and public policy.”

A new way to think about public support

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Waldman said government support for journalism is not as new as many in the industry assume. Public notices, postal subsidies and public broadcasting have long represented forms of public support, even if publishers have often been reluctant to describe them that way. “We don’t really like to talk about it, but there has been government support for news and local news for a long time,” he said. “So we’ve been doing it a little more than we think.”

What is different now, Waldman suggested, is the scale and intent behind emerging policy efforts. Rebuild Local News’ report cites more than $129 million flowing into local news through state action, and Waldman said the number surprised him when the pieces came together. “It wasn’t until we put it all together and saw how a little bit here and a little bit there really added up to a very substantial number,” he said. Looking ahead, he added, “Just this year in 2026, our estimate is going to be that $74 million will go out to local newsrooms just in 2026 from laws that were enacted in six states.”

That, he said, suggests a model that could grow well beyond a few early adopters. “It’s not hard to imagine how, if this really becomes a movement and we get it in many, many states, or ultimately have federal legislation, that this could really become a significant piece of the puzzle,” Waldman said.

Who gets the money

One of the central questions is who benefits from these policy programs. Waldman said the answer, at least so far, is broad. “All of the above,” he said when asked whether funding is reaching legacy publishers, nonprofits, startups and digital-only outlets. In Illinois, one of the first states to move aggressively, the first round of employment tax credits provided “$4 million to retain reporters and another million for new hires,” he said.

The distribution, he noted, was notable. “About two-thirds of it went to staffs that were six people or smaller,” Waldman said. “So it was not going mostly to big players.” He also said the money was not concentrated in Chicago, which he viewed as an important distinction from philanthropy. “One of the limitations of philanthropy is it tends to be concentrated in the big cities,” he said. “This seems to be getting out to small rural papers and websites more.”

Waldman said the goal is not to favor one form of local journalism over another. “We want policies that lift up the whole local news system, not cherry-picking only nonprofits or only newspapers or only TV stations,” he said. “We really believe that lifting all the boats is the way to go.”

The First Amendment filter

Waldman acknowledged the obvious concern: public money can create public pressure. “There are very good reasons for our industry to be cautious about going into public policy,” he said. That is why, he said, Rebuild Local News reviews proposals carefully. “We are always running every policy we work on through a First Amendment filter, making sure that it holds up,” he said.

Defining who qualifies as journalism is another challenge. Waldman said Rebuild Local News tries to include new forms of legitimate reporting without opening the door to bad actors. “That blogger in the basement with cats may, in fact, be a great journalist,” he said. “They might be the one actually covering the city council.” At the same time, he warned, “There are also tons and tons of fake pink slime websites out there,” which means policymakers must be “really smart about how you draw the line.”

That usually means multiple safeguards, not one perfect test. “No one of these filters is really foolproof or going to work perfectly,” Waldman said. “But it does appear that if you add them all up, it’s like Swiss cheese. The holes are all in different places, so it’s solid.”

What publishers can do now

For local publishers wondering how to engage, Waldman’s advice is direct. “Reach out to us at Rebuild Local News,” he said. “First, we’ll tell you if there’s something going on in your state already, and we’ll plug you into that.” If no effort exists, he said, publishers may need to help start one. “We might try to convince you to take the lead or at least be part of a system,” he said.

Waldman pointed to several policy models gaining traction, including employment tax credits, small business credits, government advertising and state-funded fellowships. On government advertising, he noted that “Maryland became the first state in the country to create a statewide requirement like the New York City one that says 50% of the state advertising from Maryland should go to local news.” On fellowships, he said programs in California, New Mexico and Washington are “a lot like Report for America, except funded by the state.”

Despite the depth of the local news crisis, Waldman said he sees reason for hope. “I really am optimistic,” he said. “I really do see a future.” The evidence, he said, is in the growing number of experiments that are beginning to work. “Now there’s a lot,” he said. “Not all of it is working, but some of it is.”