In a decisive move by New York lawmakers, the state’s fiscal year 2025 budget now includes an unprecedented $90 million in payroll tax credits dedicated to bolstering local journalism. This substantial commitment marks the largest financial support any state has allocated to this sector, representing a significant step in the preservation and advancement of local news.
Jon Schleuss, president of the NewsGuild-CWA, which represents numerous local newsrooms, emphasized the importance of this initiative, stating, “Never before have we had this kind of legislation in U.S. history.” He described the move as “historic” and “monumental.”
The Rebuild Local News Coalition, an advocate for journalism reform focusing on local tax credit programs, hailed the provision as a “landmark step.” The group underlined the potential of this measure to serve as a model for supporting local journalism jobs nationwide. Unlike direct government grants, tax credits are viewed by some stakeholders as a method less likely to compromise the perceived independence of news organizations.
Passed by the New York State Senate and Assembly over the recent weekend, the legislation is part of a broader state budget bill poised for approval by Governor Kathy Hochul. The provision will dispense $30 million annually over three years, aiming both to safeguard existing journalism roles and to generate new opportunities within the industry.
Eligible news outlets can claim a refundable tax credit covering 50% of the first \$50,000 of a journalist’s salary, with a cap of \$300,000 per newsroom. The legislation strategically supports small to medium-sized enterprises by ensuring that outlets with fewer than 100 employees and those with more than 100 employees each have access to up to $13 million in credits annually. An additional $4 million is reserved to encourage the hiring of new journalistic staff.
The bill is a piece of a larger puzzle in which state governments are increasingly taking active roles in funding journalism. Last year, similar initiatives were seen in Washington D.C., where council members proposed a novel bill that would allow residents to allocate government-funded vouchers to local news outlets of their choice.
This legislation could have particular resonance for small business owners and solopreneurs in the media landscape, offering them a financial cushion that could enable them to compete more effectively, enhance their editorial capacities, and potentially expand their reach and impact in the communities they serve.
