California lawmakers and Google have reached a landmark agreement to establish a $250 million fund over five years to support news outlets in the state.
This agreement is the first of its kind in the United States.
The big picture: Google’s agreement to the terms came after intense negotiations, including prior opposition to the proposed legislation through a $1.1 million ad campaign.
- The tech giant’s shift in stance followed temporary news access blocks for some California consumers earlier in the year.
- The deal will allocate funds to support local news organizations and an AI research program for five years.
What we’re watching: The deal is set to take effect next year, with $100 million allocated initially.
What they’re saying: “As technology and innovation advance, it is critical that California continues to champion the vital role of journalism in our democracy,” Wicks said. “This partnership represents a cross-sector commitment to supporting a free and vibrant press, empowering local news outlets up and down the state to continue in their essential work. This is just the beginning. I remain committed to finding even more ways to support journalism in our state for years to come.”
- California Gov. Gavin Newsom called the agreement a major breakthrough that ensures the survival of newsrooms.
- “The deal not only provides funding to support hundreds of new journalists but helps rebuild a robust and dynamic California press corps for years to come, reinforcing the vital role of journalism in our democracy,” Newsom said.
