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With local journalism in crisis, more and more cities are beginning to recognise the vital role of local news in building informed communities. An increasing number of initiatives launched by city councils reflect a growing commitment to sustaining local journalism.

Local journalism is facing a significant crisis, with newsrooms closing down at an alarming rate and leaving communities in news deserts, areas where there is little to no local news coverage. The repercussions of this decline extend far beyond the news industry, impacting local democracy, civic engagement, and even public finance.

Local journalism serves several critical functions within a community. It acts as a watchdog not only for government accountability, but also for the private sector, encouraging adherence to laws and regulations. It is also an effective tool for city governments to disseminate public notices and information on various topics.

Furthermore, as Tarsi Dunlop, Senior Program Officer, the German Marshall Fund’s Cities programme argues, local journalism helps people engage in their communities and bolster trust in local institutions. As cities consider their public reputation, supporting strong local news and prioritising active engagement suggests a willingness to be scrutinised and held accountable. An informed community is vital, as it helps local officials be more effective in their work. In addition, local news benefits cities more broadly by covering arts, culture, or local businesses, and providing reliable information during crises related to public health or safety, such as the Covid-19 pandemic or natural disasters. Ideally, local journalism also helps ensure that different communities and their lived experiences are represented, giving a voice to those less likely to be heard.

At the same time, a lack of local journalism is associated with less informed voters, lower voter turnout, and has even been linked to increased borrowing costs for local governments, as the lack of media scrutiny leads to reduced trust and higher perceived risks among investors.

Recognising these challenges, some cities have begun to take proactive steps to support local news media. Across Europe and the United States, supported is offered through various approaches, including direct financial aid, service contracts, and public policy measures. These efforts are diverse, but they all share a common goal: to sustain local journalism.

One form of support is direct funding to media outlets.  Lisbon, for example, has revised its municipal statutes this year to allow city agencies to fund local journalism projects directly. This initiative aims to bolster the local news ecosystem by providing financial support to media outlets that serve the community.

Similarly, the Vienna Media Initiative, a funding programme launched by the City of Vienna in 2020, provides substantial funding to support quality journalism and innovation within the media landscape. With a budget of 16 million euros until 2025, the programme supports self-employed journalists and small media companies through two funding schemes, offering grants of up to 10,000 euros or 100,000 euros respectively. An international jury evaluates applications based on criteria such as journalistic quality, innovation, and sustainability. Funded teams receive additional support through workshops.

In the United States, direct funding takes various forms. For example, New York City recently issued an executive order requiring city agencies to allocate half of their advertising budgets to local press, Dunlop explains. Washington, DC has introduced the Local News Funding Act, which would dedicate 0.1 percent of the city council’s annual budget to supporting local news coverage. This funding would be distributed as coupons given to registered voters, allowing them to choose a local news outlet from which to receive free content, whether it’s a newspaper, podcast, blog, or newsletter.

Another method of support comes through service contracts. Some cities, such as Chicago and Seattle, provide financial support to local media through service contracts, Dunlop says. For instance, the City Bureau of Chicago, a nonprofit civic media organisation, was contracted for note-taking services, while in Seattle, if the city needs content production, they may submit a proposal to Converge Media, a local news organisation. These contracts offer a way to financially support independent media without raising suspicion of influencing the news coverage.

In addition to these financial strategies, public policy measures have also been introduced at the state level. States like New Mexico, New Jersey, and California, have implemented public policies such as journalism fellowships and tax credits for newspaper subscriptions, to bolster local reporting and address the decline in local news outlets. Wisconsin and Illinois are also considering similar legislation.