Government funding may be on the way for hard-hit local news outlets. Would this make for an uneven playing field?

By William Dunkerley

How much federal Covid bailout money has your publication received? Much has been reported in the news about support given to help a variety of industries get through.

But many editorial offices have had to rely upon their own resources alone.

In past issues we've carried reports of the energy and ingenuity editors have put forth. They've shown a lot of steadfast dedication to continued service to their readers. Work-from-home solved a lot of problems. Yet we also saw many unfortunate layoffs, furloughs, and early retirements.

Local News Funding in the Original Spending Bill

More recently there has been talk of finally offering financial assistance to certain editorial offices. In October, Rick Edmonds at Poynter Institute reported with positive expectancy that help was on its way.

Edmonds wrote, "As the $3.5 trillion federal spending bill slowly makes its way through the House and Senate budget reconciliation process, tucked inside is as much as $1 billion to help local journalism." He explained that the assistance would be in the form of "a payroll tax credit for journalists employed by local newspapers, digital-only sites or broadcast outlets. The government would subsidize half of salaries up to $50,000 the first year and 30 percent for four subsequent years."

That could be a big help for some. But it wouldn't be for a lot of us. We're not all in the local news business.

The Latest Bill Draft: Bad News or Blessing in Disguise?

Then on November 2 Edmonds pointed out that the above assistance was part of a House draft $3.5 trillion spending initiative. Now, he reports, the Biden administration had cut its ask in half to $1.75 trillion. The House then dropped the assistance component from its proposed legislation. Thereby went away help for selected editorial offices. Says Edmonds, "It fell in the category of a lesser priority when crunch time came for budget drafting."

Not everyone shares Edmonds' sense of potential loss. Commenting on his November 2 article, West Branch Times editor Gregory Norfleet wrote, "This legislation is a bad idea. The article strongly suggests that the news industry cannot survive without government help. Not true. Like any business, we need to work hard, know our target audience, innovate, build trust and earn that support. If we need the government to survive, we then become dependent on it, which is a terrible business model. We need a good product to survive, or we deserve to go out of business because we’re bad business owners."

Much-Needed Assistance or Unfair Advantage?

Actually the stated support idea is questionable in another way, too. By singling out publications employing local journalists, the proposed legislation would tilt the playing field. Many of those publications compete in some way, often indirectly, for advertising revenue with different types of publications. Many publications not qualifying for the financial support will be left to continue on tight editorial budgets.

Those publications that are cash-infused through an assistance program will have an advantage. They will be able to take new editorial initiatives and add vibrancy to their publications. That can easily be translated into pitches for increasing their shares of advertising dollars. They would be given a competitive edge.

Weighing the Importance of Local Journalism and Market Fairness

As we close this EO issue in late November, it is uncertain whether and to what extent any assistance to editorial offices might come through. But it is worth pondering why the legislative focus is so squarely on local journalism.

Certainly local journalism can play a vital role in local communities, both socially and economically. Other areas of journalism are, however, quite important too.

For instance, a B2B magazine can play an essential role in the industry it serves. It plays a social and educational role in keeping readers up to date. That's especially important in this pandemic era and all its attendant changes.

B2B publications also play an essential economic role. They bring together buyers and sellers. They promote commerce. In this time when commerce in many economic fields has been extremely challenged, that role is especially vital.

So why the focus on local journalism? Here's one theory: We have a high-stakes election next year for control of congress. Local publications play an obvious role in communicating with voters and in getting out the vote. That makes supporting local journalism acutely interesting to legislators.

They recognize how local publications can help them. The interest in supporting local journalism is self-serving for them.

Good local journalism is important for the rest of us as well. Having well-informed voters is good for all.

But when it comes to doling out federal assistance, if indeed it ever happens, and if indeed it deserves to happen, it might be worth finding a more egalitarian approach, one that will not tilt the playing field.

William Dunkerley is principal of William Dunkerley Publishing Consultants, www.publishinghelp.com.

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