California officials and Big Tech are close to a groundbreaking agreement that would funnel over $240 million into local journalism, marking a significant step in preserving independent newsrooms across the state, the Center Square reported.

California government officials and major technology companies are nearing a landmark agreement that could result in $242.5 million in funding for journalism, with a significant focus on local news outlets.

This initiative aims to halt the progression of legislation that would compel tech giants to pay a share of their ad revenue to news organizations based on how much their content appears in search results and social media feeds.

The proposed legislation, known as the California Journalism Preservation Act, had faced strong opposition from tech companies like Google. In protest, Google began limiting the visibility of local California news organizations in its search results for some users in the state. The new agreement would prevent this legislation from moving forward.

Under the proposed deal, the state government would contribute $70 million, while Google would invest $172.5 million to support newsrooms. This funding is intended to sustain journalism across California, particularly focusing on underserved communities and small outlets.

A provision in the draft framework allocates 12% of the funds to “underserved” and “local” news outlets, which is expected to include members of California’s ethnic press and outlets with fewer than five employees, according to Steve Waldman and Anna Brugman of Rebuild Local News.

Despite the significant funding, the deal has sparked controversy among journalists. Media Guild West, representing journalists in California, has voiced strong opposition. President of Media Guild West, Matt Pearce, criticized the deal, stating, “This isn’t regulation. It’s ratification of Google’s monopoly over our newsrooms. News executives don’t speak for journalists.”

In contrast, California Gov. Gavin Newsom strongly supports the agreement. In a recent statement, Newsom said, “This agreement represents a major breakthrough in ensuring the survival of newsrooms and bolstering local journalism across California — leveraging substantial tech industry resources without imposing new taxes on Californians.”

The state’s $70 million contribution comes at a challenging time, as California recently struggled to close a $47 billion budget deficit. Nevertheless, the deal is seen as a step in addressing the financial difficulties many news organizations face, particularly those serving local and minority communities.

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