California will help eligible newsrooms pay for local reporters under a law Gov. Gavin Newsom signed September 30. The credit offers $20,000 a year for each of an outlet’s first five full-time journalists, with additional support for larger staffs, part-time reporters and new hires.
For Riverside County, which includes the Coachella Valley, the law comes against a stark local count: 2.3 local journalists per 100,000 residents. That is the third-lowest rate among U.S. counties with more than 500,000 people, according to the Local Journalist Index as reported by Poynter in July.
The money will take time to arrive. The law covers employment in tax years 2027 through 2031, but Rebuild Local News, the nonprofit that sponsored the bill, says payments are likely to reach outlets in 2028.
What a newsroom could receive
Assembly Bill 2222—the Community Newsroom Employment and Workforce Sustainability Act—creates a refundable tax credit tied to journalist employment.
An eligible outlet can receive:
- $20,000 a year for each of its first five full-time journalists.
- $15,000 for each additional full-time journalist.
- $7,500 for each part-time reporter.
- An additional $15,000 for each net new full-time journalist it adds.
“Refundable” means an outlet can receive the difference in cash if its credit is worth more than it owes in California tax.
Rebuild Local News gives this example: a nonprofit launched before 2026 with three qualifying full-time staffers in 2027 would be eligible for $60,000, paid in 2028. Hiring a fourth that year would raise the amount to $95,000.
A journalist must be employed for more than half the year, and the outlet claims the credit on a tax return. That is why the first payments are expected after the employment year.
The bill’s sponsor projects more than $200 million for California journalist jobs over the five years.
Which outlets qualify?
Print, digital and broadcast outlets can qualify, including for-profit businesses, nonprofits and sole proprietorships. Each type has its own requirements:
- Digital outlets must publish at least monthly and show that at least 33 percent of their audience is in California.
- Broadcasters need an FCC community of license in California or must be public broadcasters.
- Print publications need court recognition as a newspaper of general circulation, a USPS periodicals mailing privilege, or at least 33 percent of their distribution in California.
Every applicant must have been organized or registered to do business in California for at least 12 months before the tax year begins.
It must also identify its beneficial owners—or its board if it is a nonprofit—publish a corrections policy with a way for the public to report errors, and carry media-liability insurance throughout the year. It cannot be controlled by a political action committee or a 501(c)(4) organization.
Rebuild Local News says no state official evaluates an applicant’s viewpoint or editorial decisions.
Which journalists count?
A qualifying full-time journalist must be a California resident, work at least 30 hours a week for more than 26 weeks, and earn at least $35,000 a year.
A part-time journalist works 20 to 30 hours a week and earns at least $25,000.
Freelancers do not count. A sole proprietor who is both the outlet and its reporter can qualify.
How California pays for it
The credit is funded by ending a state corporate tax deduction for executive pay above $1 million. Rebuild Local News says that change aligns California with federal law.
The group cites a Franchise Tax Board estimate that the credit will cost $104 million over three years, while the deduction change will bring in $152 million.
The California Taxpayers Association opposed the bill, arguing that financing a credit for one industry through a tax increase on unrelated taxpayers is unsound.
The region’s shortage of reporters
Riverside County’s rate of 2.3 local journalists per 100,000 residents is followed closely by San Bernardino County, which ranks fourth-lowest among large counties at 2.4.
California as a whole has about six local journalists per 100,000 residents. The national figure in this year’s index is 7.8, down from about 40 in 2002.
Those figures describe the staffing gap the new credit could help newsrooms address. They do not change its timing: employment qualifies starting in 2027, with the first payments expected in 2028.
Update, October 14: Revised the headline and opening and reorganized the article for clarity. The facts, sources, correction and key points are unchanged.