SACRAMENTO, Calif. (Diya TV) — California Gov. Gavin Newsom has moved to end a $250 million agreement with Google and Meta that was designed to support local newspapers, reversing a deal he once praised as a breakthrough for local journalism. The decision comes less than two years after Newsom helped broker the landmark agreement, which required major technology companies to help fund struggling news organizations across California. The move has drawn sharp criticism from media experts and renewed concerns about the future of local journalism.
In 2024, Newsom announced an agreement with Google and Meta, the parent company of Facebook and Instagram, to provide $250 million over five years to support local newspapers. The deal aimed to offset years of lost advertising revenue that migrated from traditional media to digital platforms.
At the time, Newsom framed the agreement as a win for both journalism and taxpayers. He said the deal would strengthen local newsrooms without creating new taxes or fees for Californians. The funding model required both the state and tech companies to contribute. California committed $10 million in 2025, which Google agreed to match. Meta was also expected to contribute, though its exact payment schedule was never made public.
That commitment is now gone.
Newsom’s proposed $400 billion budget for the 2025–27 fiscal years eliminates the state’s contribution to the newspaper subsidy. The Bay Area News Group first reported the change after reviewing the budget documents.
Newsom’s office has not explained why the funding was removed. The governor has also declined to comment publicly on the decision, leaving journalists and media advocates searching for answers. Without the state’s contribution, the program cannot continue as planned. The move effectively ends the deal that Newsom once promoted as essential to preserving local news.
Media policy experts say the decision could further weaken local journalism, which already faces shrinking audiences and declining revenue. Victor Pickard, a professor of media policy at the University of Pennsylvania, called the move short-sighted. He said local journalism no longer has a viable commercial future without public support.
Pickard acknowledged that budget pressures force difficult choices. Still, he said, funding local news should rank higher on the state’s priority list due to its role in democracy and civic engagement. Local newspapers across California have closed or reduced staff in recent years. Many communities now lack consistent coverage of city councils, school boards, and local elections.
Google has also confirmed it will not contribute funding this year since the state withdrew its share. In a statement to the Bay Area News Group, a Google spokesperson said the company remains willing to match the state’s contribution. The spokesperson added that Google is waiting for the final budget before taking further action.
The statement drew criticism for its tone. Media advocates said it highlights how fragile the funding model became once the state stepped away. Meta has not issued a public statement about the decision. Its absence from recent funding discussions has raised questions about its commitment to supporting local journalism.
The end of the Google and Meta deal marks another setback for California newspapers already struggling to survive. Advertising revenue continues to flow to digital platforms, while local outlets face rising costs and declining subscriptions. Supporters of the deal argue that tech companies benefit from news content shared on their platforms. They say those companies should help fund the journalism that drives user engagement.
Without state leadership, experts warn that similar deals may become harder to secure in the future. They also say the loss of local news could reduce government accountability and civic participation. As California lawmakers review the proposed budget, media advocates hope the funding can still be restored. For now, the future of the program — and the newsrooms it aimed to support — remains uncertain.
