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SACRAMENTO, California—Governor Gavin Newsom signed AB 2222, a new law establishing refundable tax credits for local news organizations that maintain or increase their staff of journalists in California.

The measure, promoted with the weak argument of strengthening local journalism, will take effect for fiscal years beginning in 2027 and will remain in force until 2031. The program includes incentives for both retaining existing positions and hiring new journalists.

According to the legislation, eligible media outlets will be able to obtain a credit of $20,000 annually for each of their first five full-time journalists, followed by $15,000 for each additional journalist. It also includes incentives related to new hires and certain part-time workers.

The initiative has sparked a debate about the role the government should play in media funding and whether it is acceptable to give money to those aligned with a particular leader.

Political commentator Steve Hilton questioned the measure, stating that it represents a form of public subsidy for news organizations that maintain coverage favorable to Newsom.

The legislation establishes eligibility requirements and excludes, among others, organizations controlled by political parties or social welfare organizations. It also requires participating media outlets to maintain certain editorial standards, such as publishing a corrections and clarifications policy.

The ensuing debate centers on whether public funds should be used to financially support news organizations and to what extent such incentives might affect the relationship between the media and government officials, or, conversely, what the intentions are behind supporting media outlets that support the government.

AB 2222 joins other California programs designed to support local journalism with taxpayer money. In July, the state government also announced $20 million in funding, matched by a matching contribution from Google, to support eligible news organizations.

With Newsom's signature, California once again becomes the stage for a national discussion on how to address the economic crisis facing local media without compromising editorial independence, and why the government should determine how taxpayer money is spent—money that comes from people who are already weary of the state's high taxes.