Gov. Newsom Approves Tax Credits for Newsrooms — Despite Eligibility, Cost Concerns

October 8, 2026

California Governor Gavin Newsom signed Assembly Bill 2222 on September 30, establishing refundable tax credits for local news organizations based on their journalist employment numbers. The legislation offers qualifying outlets up to $20,000 per journalist for their first five employees and $15,000 for additional hires, with supplementary credits for new positions, funded through changes to executive compensation tax deductions. Supporters argue the measure provides crucial support to an industry that has lost over 12,000 journalists since 2002 due to declining revenue and closures.

Who is affected

Local news organizations across California (both nonprofit and for-profit)
Over 12,000 journalists lost in California since 2002
Existing and prospective journalists who may be hired or retained
California Black Media and identity-based media groups
Small newsrooms like Observer News Group in Southern California
Hedge fund-owned and corporate media chains
California taxpayers (who fund the credits)
Consumers (potentially through passed-on costs according to business opponents)

What action is being taken

Governor Newsom signed AB 2222 into law on September 30
Tax credits are being provided to qualifying news organizations ($20,000 per journalist for first five positions, $15,000 for additional journalists, $7,500 for part-time positions, and $15,000 for new hires)
The credits are being financed by aligning California's tax code with federal provisions eliminating certain executive compensation deductions

Why it matters

This legislation matters because it addresses the collapse of local journalism, which plays a critical role in exposing government corruption and maintaining democratic accountability. With California losing more than 12,000 journalists since 2002, communities risk losing watchdog coverage that uncovers wrongdoing like the Bell municipal corruption scandal. The law represents California's commitment to protecting press freedom at a time when journalism faces attacks at the federal level, and establishes a "news neutral" model that other states could potentially replicate to sustain local news ecosystems.

What's next

Newsom suggested that lawmakers and the next governor should consider narrowing eligibility to avoid subsidizing hedge funds and wealthy corporate owners who don't need public support, focusing resources instead where the need is greatest.

Read full article from source: The San Diego Voice & Viewpoint