A year after Congress cut off federal support for public broadcasting, California is putting its own money behind local radio newsrooms. Gov. Gavin Newsom has signed the Community NEWS Act, creating refundable tax credits for news outlets that keep journalists on staff.
The law provides a refundable employment tax credit of $20,000 for each of a news organization’s first five full-time journalists and $15,000 for each additional full-time journalist, along with $7,500 for part-time journalists and a stackable $15,000 credit for each new full-time journalism position. The credits apply for tax years 2027 through 2031, and because they are refundable, nonprofits and outlets with little tax liability can receive them as cash.
The bill, endorsed by the California Broadcasters Association, passed the Legislature by supermajorities, including a 59-15 Assembly vote.
Broadcast stations qualify if they are FCC-licensed to a community of license in California or are public broadcasters, and the law includes eligibility paths for stations that previously received CPB Community Service Grants and for journalists employed on behalf of university-licensed public stations. Supporters estimate the program will provide more than $40 million a year to California outlets, funded by eliminating a state corporate tax deduction for executive compensation above $1 million.
Critics argued that refundable credits function like grants and could give news outlets a financial stake in staying on the state’s good side.
California joins states including New York, which in 2024 enacted a $30 million annual tax credit for newspaper and broadcast jobs, and Illinois and New Mexico, which offer per-journalist credits. Maine, Oregon, and Washington are among the states expected to take up similar proposals in 2027.
Gov. Newsom said in a statement, “While President Trump continues to attack the free press, California is supporting independent journalism. By signing this bill, we are signaling the profound role journalists play to cover essential issues like local schools, city halls, courts, public safety agencies, businesses, and neighborhoods. A free press isn’t supposed to make government comfortable. It’s supposed to make government accountable.”
SAG-AFTRA backed the legislation, with SAG-AFTRA President Sean Astin saying, “Gov. Newsom’s signing of the Community NEWS Act is a huge win for the quality journalism needed to build a healthy, informed society. Thank you Gov. Newsom, Assemblymember Chris Ward and AB 2222’s allies in the California Legislature for making the policy changes necessary to ensure continued access to the news and information that keeps our democracy thriving.”
