October 2, 2026
Tanu Henry | California Black Media
Gov. Gavin Newsom signed legislation on Sept. 30, aimed at strengthening California’s struggling local news industry, saying journalists are essential to exposing wrongdoing and protecting democracy.
“It’s journalists that need to report those stories and local journalists that need to uncover and sort of peel back the facade if democracy is going to survive, let alone thrive,” Newsom said before signing Assembly Bill 2222 at his Sacramento office.
By state law, Sept. 30 is the last day the governor can sign or veto bills. Legislation he does not approve or veto automatically become law.
Authored by Assemblymembers Chris Ward (D-San Diego) and Buffy Wicks (D-Oakland), AB 2222 creates refundable tax credits for qualifying local news organizations based on the number of journalists they employ. The measure, formally named the Community Newsroom Employment and Workforce Sustainability Act, is also known as the Community NEWS Act.
Under the law, eligible news organizations can receive a job-retention credit of $20,000 per journalist for their first five positions and $15,000 for each additional journalist. Part-time positions qualify for $7,500 credits.
Publishers can also receive an additional $15,000 credit for each new journalist hired, an incentive designed to expand newsroom staffing. The credits are “news neutral,” meaning eligibility is not based on an outlet’s size, editorial viewpoint or organizational structure.
Supporters say the law could provide a lifeline to local news outlets that have struggled with declining advertising revenue, newsroom layoffs and closures. California has lost more than 12,000 local journalists since 2002, according to Rebuild Local News, a nonprofit advocacy organization.
Regina Brown Wilson, executive director of California Black Media, said the governor’s action recognizes journalism’s critical public-service role.
“I am extremely grateful that Governor Newsom stood up for a free press at a time when journalism is under attack, including at the federal level,” Wilson said. “His signing of AB 2222 sends a powerful message that California understands the essential role of the Fourth Estate in our democracy. Today, California demonstrated that protecting journalism is protecting democracy.”
Newsom also criticized what he called the “assault on the free press and the First Amendment” coming from Washington and President Donald Trump.
To underscore the value of local reporting, Newsom cited the Los Angeles Times’ investigation that exposed municipal corruption in Bell, where local government officials received exorbitant salaries.
“No one would have known had it not been for local journalism,” Newsom said. “How many more Bells are out there, not just in this state, but all across the country?”
The measure drew support from more than 180 local, state and national organizations, including press associations, nonprofit and independent publishers, identity-based media groups, labor unions, journalism educators and national industry advocates.
“The News/Media Alliance applauds Governor Newsom for signing AB 2222, the Community NEWS Act, into law,” said Danielle Coffey, the alliance’s president and CEO. “This law creates a common-sense model to support the sustainability of journalism in California, and its greatest strength is that it is ‘news neutral,’ covering the full, diverse scope of news media within the state.”
Coffey said the coalition supporting the legislation demonstrated a model that other states could follow to sustain local journalism.
Gov. Newsom emphasized that the program benefits all media outlets, including hedge fund-owned media chains and outlets, he said, produce propaganda instead of balanced news stories.
“This bill that I’ll sign today will benefit even those propaganda outlets because that’s what the 1st Amendment demands. There’s no censorship. There’s no bias, and I think that’s a healthy thing,” Newsom said. “So, California will continue to lead in this space. We did so a number of years ago when we established a framework of a public-private partnership where we actually got Google to contribute and match state contributions of $25 million that I put in the budget this year for our civic media program, which was the first in the nation. We did that to support grants of up to $250,000 to newsrooms.”
The tax credits provided by the new law would be financed by aligning California’s tax code with a provision in President Trump’s federal tax law that eliminated certain deductions for executive compensation exceeding $1 million annually.
James Luckey, Publisher of the Observer News Group in Southern California, which serves Bakersfield, Antelope Valley and Los Angeles, said, for small newsrooms across California, finding good journalists is not the problem.
“It’s keeping them,” Luckey said. “We’ve had talented fellows come through the Bakersfield News Observer and the Los Angeles News Observer and when the fellowship ends, we’re left doing the math on whether we can afford to keep them,” Luckey said. “Too often we can’t. AB2222 changes that. A credit tied directly to the reporters on our payroll means we can plan a year out instead of week to week.”
Luckey added, “As a third-generation publisher, we haven’t missed a week in 50 years. This bill is the state saying it wants papers like ours to still be here for the next 50. I’m grateful to Assemblymembers Ward and Wicks, and California Black Media, and the coalition, and the governor for getting it done.”
Business organizations, including the California Chamber of Commerce and California Taxpayers Association, opposed the measure, arguing that it would raise employer costs that could be passed on to consumers.
Newsom’s finance office also raised concerns that the bill does not cap the credits, potentially creating an unlimited financial obligation for the state.
Newsom acknowledged that wealthy corporate owners and hedge funds could benefit, even if they do not need public support.
“It does subsidize those that don’t need to be subsidized,” he said, adding that lawmakers and the next governor should consider narrowing eligibility.
“We should not be subsidizing hedge funds,” Newsom said. “We should be focused on where the need is the greatest.”
Despite those concerns, Newsom said the benefits of supporting local journalism ultimately outweighed the bill’s potential liabilities.
Discover more from Central Valley Voice
Subscribe to get the latest posts sent to your email.
