The Great Betrayal: How California Abandoned Local Journalism to Corporate Power
Published
- 3 min read
The Collapse of a Landmark Agreement
In what can only be described as a devastating blow to democratic infrastructure, California’s promised $175 million journalism fund—a five-year partnership between the state and Google—has effectively collapsed following Governor Gavin Newsom’s budget proposal that eliminates state funding for the initiative. This agreement, brokered after Google spent $11 million lobbying against legislation that would have required the $4 trillion company to pay newsrooms for using their content, was structured as a matching fund arrangement: Google would contribute dollar-for-dollar whatever California allocated.
According to Erin Ivie, spokesperson for Assemblymember Buffy Wicks who helped broker the deal, the arrangement was never formalized through binding legal documentation. It existed as a “handshake agreement in principle” with no penalties or consequences for non-compliance. The brutal reality is that with zero state dollars allocated, Google’s contribution automatically becomes zero dollars—a technicality that effectively kills the entire initiative without any recourse for the journalism organizations that desperately needed this funding.
The Broader Context: Journalism in Crisis
The collapse of this agreement occurs against a backdrop of catastrophic decline in local journalism nationwide. Since 2005, more than 3,200 newspapers have closed, creating news deserts across America that undermine civic engagement and democratic accountability. Meanwhile, Google’s parent company Alphabet reported over $100 billion in revenue in just the third quarter of 2025 alone. A 2019 study estimated that Google made $4.7 billion from news sites in a single year (2018), profiting handsomely from content it neither creates nor compensates adequately.
Even the $20 million that California and Google had collectively put into the fund hasn’t reached newsrooms yet, though Newsom’s office claims it will be distributed this year. This delay compounds the injury—promised relief remains inaccessible while news organizations continue struggling to survive.
A Failure of Moral and Democratic Responsibility
This episode represents more than just a broken promise—it signifies a profound failure of moral and democratic responsibility at multiple levels. The voluntary nature of the agreement allowed Google to escape accountability through technicalities, while the state’s withdrawal of funding demonstrates a shocking disregard for the vital role journalism plays in maintaining functional democracy.
Google’s position in this arrangement deserves particular scrutiny. A company that generated $100 billion in a single quarter could fulfill the entire $175 million commitment hundreds of times over with minimal financial impact. Yet it hides behind the technicality of matching requirements rather than stepping up as the responsible corporate citizen it claims to be. This behavior exemplifies how massive corporations leverage their power to avoid contributing to the ecosystems from which they profit enormously.
The state’s role is equally troubling. Governor Newsom’s administration had an opportunity to demonstrate leadership in addressing the journalism crisis—a crisis that directly impacts democratic governance. Instead, by eliminating funding, they’ve sent a clear message that supporting local journalism isn’t a priority, regardless of rhetorical commitments to democracy and informed citizenship.
The Human Cost of Journalism’s Collapse
Behind these numbers and technicalities lie real human consequences. When local journalism disappears, communities lose their watchdogs, their information networks, and their connective tissue. Corruption flourishes in darkness, voter participation declines, and civic engagement withers. The collapse of this fund means more newsroom layoffs, more closed publications, and more communities left without reliable information about local government, schools, businesses, and events.
This isn’t just about journalists losing jobs—it’s about citizens losing their ability to make informed decisions, hold power accountable, and participate meaningfully in democratic life. The irony is particularly bitter given that this failure occurs in California, home to Silicon Valley and some of the world’s most innovative technology companies. That such wealth and technological prowess coexists with such neglect for information infrastructure represents a tragic paradox.
The Path Forward: Principles and Solutions
This situation demands urgent corrective action based on several fundamental principles. First, corporations that profit from news content must contribute fairly to its production. Voluntary arrangements have proven inadequate—we need legally binding mechanisms that ensure tech giants pay their fair share for the content from which they derive enormous value.
Second, government at all levels must recognize journalism as essential infrastructure worthy of public investment. Just as we fund roads, schools, and utilities, we must support the information ecosystems that make democracy possible. This isn’t about subsidizing particular media outlets—it’s about ensuring citizens have access to reliable information about their communities.
Third, we need transparency and accountability in agreements between governments and corporations. Handshake deals that evaporate when budgets tighten are unacceptable when dealing with matters of such public importance. Future arrangements must include binding commitments, clear timelines, and enforceable penalties for non-compliance.
Finally, we must recognize that the journalism crisis is fundamentally a democracy crisis. Without robust local journalism, power operates without scrutiny, citizens make decisions without information, and community cohesion frays. Addressing this isn’t optional—it’s essential to the survival of democratic governance.
Conclusion: A Call to Action
The collapse of California’s journalism fund represents a watershed moment that should alarm every citizen who cares about democracy. It demonstrates how easily corporate power can evade responsibility and how quickly government can abandon essential democratic infrastructure when convenient.
We must demand better from both our corporate leaders and elected officials. Google should honor the spirit of the agreement and fund journalism regardless of the state’s matching contribution—$175 million represents less than 0.2% of their quarterly revenue. Governor Newsom should restore funding and demonstrate commitment to preserving California’s information ecosystem. And citizens should recognize that without local journalism, democracy becomes a hollow shell.
The time for handshake deals and empty promises has passed. We need binding commitments, substantial investment, and renewed recognition that journalism isn’t a luxury—it’s the lifeblood of democracy. If we allow this infrastructure to collapse further, we will reap the consequences in diminished accountability, increased corruption, and weakened civic life. The choice before us is clear: invest in journalism now, or pay the much higher price of democracy in decline later.