Governor Gavin Newsom proposes cutting California’s $30 million commitment to a deal with Google aimed at saving local news.
California’s landmark agreement with Google to support local journalism is under threat after Governor Gavin Newsom proposed cutting the state’s contribution from $30 million to just $10 million – before a single dollar has been distributed.
The $125 million deal, announced last August, promised funding for local newsrooms over five years, split between the state and Google. But facing a projected $12 billion deficit, Newsom’s administration now says it must scale back, citing “fewer resources than projected”, in a development first reported by Local News Matters.
The proposal has sparked anger among media advocates and cast doubt over Google’s own contribution, which was to begin with $15 million this year. The original agreement was not legally binding and relied on public commitments rather than enforceable terms. With UC Berkeley stepping away from its role as fund administrator, the programme’s future remains uncertain.
“It’s extremely disappointing,” said Steven Waldman, president of Rebuild Local News. “Pink slime and misinformation are flooding into the vacuum, so time is of the essence to turn this around.”
Critics also point to the political backdrop. In the three months before the deal was announced, Google spent nearly $11 million lobbying against proposed legislation that would have forced tech firms to pay for news content. One such bill, championed by former State Senator Steve Glazer, aimed to raise $500 million annually through taxes on big tech to fund local journalists. That legislation was shelved in favour of the Google partnership, which is now seen by some as a strategic move to avoid regulation.
“This was a public promise,” said Glazer. “Now it looks like Google may be off the hook if the state pulls back.”
Since 2005, the US has lost more than a third of its local newspapers. The trend has deepened civic disengagement and left communities more vulnerable to misinformation. In California alone, entire regions have become news deserts.
As local outlets scramble to survive in a digital ecosystem dominated by Google, many in the industry now see this unraveling deal as emblematic of a broader failure to secure sustainable support for public interest journalism.[](https://calmatters.org/politics/capitol/2024/08/california-journalism-deal-legislature-google/)[](https://www.sacbee.com/news/politics-government/capitol-alert/article291309020.html)
Source: Noah Wire Services
- https://localnewsmatters.org/2025/05/19/a-125m-pact-with-google-to-save-local-news-may-be-slashed-before-distributing-a-penny/ – Please view link – unable to able to access data
- https://apnews.com/article/0921cc2b39de591c173201e1ec4bee64 – In April 2024, Google began removing links to California news websites from some users’ search results. This action was a response to proposed legislation requiring tech companies to compensate media firms for linking to their content. Google argued that the bill disrupted its business model and threatened investments in California’s news industry. Supporters of the legislation contended it was essential to support local journalism, while opponents, including Google, claimed it could harm local news organizations and benefit out-of-state newspaper chains.
- https://apnews.com/article/california-google-news-funding-87d423a8a8bfe2730b27ee3e59f4f454 – Critics argue that the $250 million deal between California and Google, announced in August 2024, was a political maneuver by tech giants to avoid a fee under proposed legislation. The deal involved Google and the state contributing funds to support journalism initiatives and an AI research program. However, some critics believed the agreement was insufficient and questioned the inclusion of AI funding, expressing concerns about potential job losses in the journalism sector.
- https://calmatters.org/politics/capitol/2024/08/california-journalism-deal-legislature-google/ – In August 2024, California lawmakers and Google reached a deal to support local journalism and advance AI. Google agreed to deposit $55 million over five years into a fund administered by UC Berkeley, with the state contributing $70 million over the same period. Additionally, Google committed to continuing $10 million in existing grants to newsrooms. The deal also included $12.5 million annually for an AI ‘accelerator’ program, raising concerns among labor advocates about potential job losses.
- https://www.sacbee.com/news/politics-government/capitol-alert/article291309020.html – In August 2024, California lawmakers announced a deal to shelve a bill that would have forced tech companies to pay newsrooms for their content. Instead, they created a $250 million public-private partnership to support news organizations and advance AI. The deal allocated funds for newsrooms and an AI accelerator project over the next five years, with the majority of the funds directed toward supporting local journalism.
- https://www.sacbee.com/news/politics-government/capitol-alert/article291181140.html – In August 2024, Google and California reached an agreement to support local journalism and advance AI. The deal involved Google contributing $110 million and the state contributing $70 million over five years to a ‘News Transformation Fund’ administered by UC Berkeley’s journalism school. The agreement also included funding for an AI accelerator program, with both the tech industry and AI experts expressing support for the initiative.
- https://www.abc10.com/article/news/local/california/california-news-google-millions-journalism-agreement/103-c2b79dee-3d94-4506-9a65-1d6105ac72f9 – In August 2024, California lawmakers and Google reached a deal to support local journalism and advance AI. The agreement involved Google depositing $55 million over five years into a fund administered by UC Berkeley, with the state contributing $70 million over the same period. Google also committed to continuing $10 million in existing grants to newsrooms. The deal included $12.5 million annually for an AI ‘accelerator’ program, raising concerns among labor advocates about potential job losses.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative is recent, referencing events from May 2025. The agreement was announced in August 2024, indicating timely reporting.
Quotes check
Score:
8
Notes:
The quote from Steven Waldman, president of Rebuild Local News, is provided without an explicit original source date. However, the context suggests it is recent within the narrative.
Source reliability
Score:
7
Notes:
The narrative originates from Local News Matters, which is less well-known compared to major publications like the Financial Times or BBC. However, the content is informed by specific details and context.
Plausability check
Score:
8
Notes:
The claims about funding cuts and Google’s involvement in the deal are plausible given the context of budgetary constraints and lobbying efforts.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative is fresh and plausible, but the source is less established. Quotes are provided without specific original source dates. Overall, while the information seems recent and contextually appropriate, the lack of well-known source reliability and direct quote verification keeps the verdict open.
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