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Tech Titans Play Cheap: Google Slashes Local News Funding While California Bleeds

Person reading a newspaper

Photo by Roman Kraft on Unsplash

In a move that’s about as surprising as finding a tech bro in a Tesla, Google just pulled a classic Silicon Valley move by cutting $5 million from its local news funding commitment.

The tech giant originally promised a cool $15 million to support struggling California news outlets, but now they’re scaling back to $10 million faster than you can say “algorithmic disruption”. This comes hot on the heels of Governor Gavin Newsom’s own budget reduction, proving that when the going gets tough, the tech world gets frugal.

The Money Trail

Let’s break down this financial drama: California is facing a whopping $12 billion budget deficit, which apparently means local journalism gets to take another gut punch. The newly created California Civic Media Fund will now be administered by the California State Library, who gets the dubious honor of deciding how to distribute these increasingly scarce funds.

The Real Cost of Cutting Corners

Here’s the kicker: California has lost one-third of its newspapers since 2005. One. Third. That’s not just a statistic; it’s a full-blown media apocalypse that threatens civic engagement, amplifies polarization, and gives misinformation a VIP pass to our newsfeeds.

The Tech Lobby Shuffle

Google’s funding cut isn’t happening in a vacuum. Last year, they spent a record amount lobbying California lawmakers to avoid legislation that would have forced them to pay for using news content. Instead, they struck a deal that looks increasingly like a PR band-aid on a systemic wound.

As Assemblymember Buffy Wicks put it, “Sustaining local journalism will take all of us”. Except, apparently, when budgets get tight.

AUTHOR: cgp

SOURCE: Local News Matters