California, Google Cut Local News Fund Amid Budget Deficit

Google has reduced its pledged contribution to the California Civic Media Fund from $15 million to $10 million, following a similar cut by California Governor Gavin Newsom, who lowered the state's contribution from $30 million to $10 million due to a $12 billion budget deficit. The fund, now administered by the California State Library, aims to support and enhance local news coverage across California by distributing money among news publishers based on community needs. Assemblymember Buffy Wicks, involved in the fund's setup, described the funding as seed money intended to attract additional philanthropic donations, with Google committed to matching up to $5 million of any private contributions. The initiative arose after state lawmakers dropped bills that would have required tech companies to pay for using news content, in exchange for Google's financial support. Despite the reduced funding, Google and state officials emphasize their commitment to sustaining local journalism, though critics argue the current amounts fall short of the original $125 million five-year goal. The fund's framework lacks a formal memorandum of understanding, but it sets a precedent for tying journalism funding to government and private contributions as other states consider similar efforts.