California Passes Bill to Fund Local Journalism via Tax Credits
The California legislature has enacted Assembly Bill 2222, known as the Community Newsroom Employment and Workforce Sustainability Act, aimed at providing up to $40 million each year for news organizations. This legislation received approval from the State Senate on Sunday and garnered at least 54 votes in the Assembly, now pending Governor Gavin Newsom's endorsement. It supports local journalism by restricting corporate tax deductions on executive pay exceeding $1 million. The bill includes refundable tax credits for newsrooms based on the number of journalists employed: $20,000 for up to five journalists, $15,000 for each additional journalist, and $7,500 for part-time workers. Additionally, a $15,000 credit is available for new hires. Similar programs are in place in Illinois, New York, and New Mexico.
Key facts
- California passed Assembly Bill 2222, the Community Newsroom Employment and Workforce Sustainability Act.
- The bill could generate up to $40 million annually for California newsrooms.
- It passed the State Senate on Sunday night and the Assembly with a supermajority of at least 54 votes.
- It will be sent to Governor Gavin Newsom to be signed into law.
- Funding comes from limiting corporate tax deductions for executive compensation above $1 million.
- Refundable tax credits: $20,000 per journalist for up to five positions, $15,000 for each additional, $7,500 for part-time.
- A $15,000 'new hire' credit is available for expanding headcount.
- Rebuild Local News is the nonprofit sponsoring the bill.
- Matt Pearce is the director of policy at Rebuild Local News.
- Illinois enacted a similar program in 2025, with $4 million claimed in its first year.
- New York allocated $90 million in its 2025 budget for local news payroll tax credits.
- New Mexico enacted the Local Journalist Employment Tax Credit, allowing up to 30% of wages in credits.
Entities
Institutions
- California State Senate
- California State Assembly
- Rebuild Local News
- Nieman Journalism Lab
- Nieman Foundation for Journalism at Harvard University
Locations
- California
- Illinois
- New York
- New Mexico
- Central Valley