This week, I testified on SB 5400, a bill that would create a new way to fund local journalism in Washington State.
I emphasized the critical role of local journalism in combating election-related misinformation and ensuring the safety of election workers.
I also suggested a few ways the bill could be improved:
I highlighted the New Jersey Civic Information Consortium as a model for ensuring independence and expertise in funding decisions, and stressed the importance of adhering to the Institute for Non-Profit News standards, which require journalists to be based in the communities they cover. Lastly, I advocated for long-term funding solutions, such as taxing digital advertising, to address the revenue crisis caused by platforms like Meta and Alphabet.
SB 5400 proposes expanding a surcharge on large tech firms to fund an account managed by the state Department of Commerce. While the criteria for distributing funds are broad, the requirement that organizations have at least three full-time staffers could exclude smaller, newer local news organizations that rely on freelancers. In today’s media landscape, three full-time reporters is a significant number, and this requirement risks leaving behind the very communities most in need of local journalism.
It’s long past time to question whether we should publicly fund journalism in Washington State. The state already supports two examples of publicly funded journalism: TVW and the Edward R. Murrow College of Communication’s fellowship program. TVW, a nonprofit organization, receives over 80% of its funding from the state and provides in-depth coverage of state government. This model demonstrates how public funding can support independent, high-quality journalism. The Murrow College fellowship program, launched in 2023, places early-career journalists in under-served communities across Washington to report on civic affairs for two years. It currently supports 16 fellows who report on issues such as government accountability, rural economics, and environmental policy. Fellows receive ongoing training, mentorship, and a strong cohort experience, with their work available via Creative Commons. Future fellow placements depend on continued legislative funding.
SB 5400 follows on the heels of efforts in other states to tackle the local journalism problem. California reached a deal with Google to support local journalism, but it has been criticized for lacking meaningful, long-term solutions. The agreement allocates $55 million from Google and $70 million from the state over five years, but the legislative proposals surrounding it fall short. One stronger proposal called for a tax on digital advertising, while the other suggested a recycled idea for a link tax, which I will discuss below. The negotiated deal is a mess. It prioritized large corporate publishers over smaller, community-based media outlets and includes an AI accelerator program that journalists did not request. Big Tech’s influence in shaping the deal highlights the need for stronger, community-driven coalitions to counter corporate interests in future local-news policy efforts.
The New Jersey Civic Information Consortium (NJCI) is a nonprofit that receives state funding and distributes grants to local news organizations. Governed by a board with representatives from state universities, legislative caucuses, and the public, the NJCI ensures a fair and equitable distribution of funds. This model could serve as a blueprint for Washington, though adjustments would be needed to account for the state’s larger size and more rural communities.
Another proposal in Oregon under consideration this year (SB 686) is an example of the worst of all approaches. Similar to California’s original link tax proposal, it also attempts to prevent platforms from penalizing journalism organizations by outlawing algorithmic de-prioritization of news content. However, it fails to address First Amendment implications of this ban or provide a clear enforcement mechanism. This approach misunderstands the root problem: the decline of journalism is caused by the loss of advertising revenue to digital platforms, not the linking behavior of users.
How we should approach state-level journalism funding
For systems of state-level funding, I look for two key components:
- A fair, equitable decision-making process grounded in local needs, exemplified by the New Jersey Civic Information Consortium’s statewide distribution of funding and emphasis on community-driven projects.
- Funding derived from digital advertising taxes, not link taxes. Taxing digital advertising directly addresses the root cause of journalism’s revenue crisis, while link taxes harm the open web and fail to provide sustainable solutions.
We often forget how revolutionary hyperlinks were when they first appeared on the web. The Cluetrain Manifesto reminds us that hyperlinks are messy, decentralized, and inherently democratic. Taxing them undermines the open web and further entrenches the dominance of closed-garden social media platforms.
The real threat to journalism over the past twenty-five years has been the decline in advertising revenue, driven by the ad tech capture of Meta (Facebook, Instagram) and Alphabet (Google).
Taxing digital advertising directly addresses this issue, using the profits of these platforms to fund the journalism they have undermined. This is akin to taxing cigarettes or sugary drinks to fund universal healthcare, it targets the source of the problem to create a better future.
We should work to break apart the ad tech monopoly (United States v. Google LLC 2023), but lawsuits take time.
In the meantime, taxing digital advertising provides a sustainable, immediate solution to fund local journalism and ensure a well-informed citizenry.