Lawmakers cross aisle to support community journalism

It’s rare that we see politicians cross the aisles this day, so when they do, it has to make you look a little more closely at the importance of what they’re working on.

In this case, Reps. Ann Kirkpatrick, D-Ariz., and Dan Newhouse, R-Wash., have introduced the Local Journalism Sustainability Act (H.R. 3940) for the 117th Congress, a bipartisan bill that seeks to help local newspapers sustain financial viability through a series of three tax credits.

This isn’t the first time something like this has come before Congress and we hope that legislators and residents take time to consider the significance of supporting community journalism.

Our founding fathers wrote freedom of the press into the First Amendment of the United States Constitution.

They understood that a healthy democracy also needs to have a robust system of journalists holding leaders accountable and providing factual information about items of importance and interest in our communities.

Our founding fathers weren’t the only ones who understood that. Countries like China also understand it, which is why their actions are the opposite — to shutter and stifle free news.

Hong Kong’s largest pro-democracy newspaper was just closed this week as China’s government continued its attack on free press by arresting journalists with the organization and freezing its assets.

Here, many local businesses and jobs are at stake, but also the future of communities.

What we decide to support today, will also help determine the strength of our democracy in the years to come.

“The ongoing challenges at local newspapers were made worse by the pandemic,” said Dean Ridings, CEO of America’s Newspapers. “The result is even more pressure to maintain newsroom positions and the critical local newsgathering that is at the heart of our democracy.

“As local newspapers continue their progression to a sustainable digital future, the Local Journalism Sustainability Act will provide meaningful assistance as newspapers seek to provide information in new ways to meet the needs of their audience. “This act will also help the local advertisers that are critical to local communities, and we are grateful to Reps. Kirkpatrick and Newhouse for their work in filing this important legislation.”

The bill takes a bottom-approach, according to Steven Waldman, president of Report for America and leader of the Rebuild Local News coalition, which represents more than 4,000 locally owned and nonprofit newsrooms.

The Local Journalism Sustainability Act is a bipartisan bill that provides a pathway to financial viability for local newspapers, in print or online, through a series of three tax credits. Such publications were already facing financial hardships prior to the COVID-19 pandemic, which have only worsened over the last year.

Local Newspaper Subscription Credit

This credit will grow publications’ subscription bases by incentivizing Americans to subscribe to local newspapers.

• Five-year credit of up to $250 annually.

• Credit covers 80% of subscription costs in first year and 50% in subsequent four years. (To receive full $250 credit, a subscriber would have to spend at least $312.50 in the first year, and $500 each of the following four years.)

• Credit can be used with non-profit publications if the publication is the non-profit’s primary activity.

Local Newspaper Journalist Compensation Credit

This credit will provide publications the ability to hire more dedicated local news journalists to improve their newsroom coverage.

• Five-year credit of up to $25,000 in first year and up to $15,000 in subsequent four years.

• Credit covers 50% of compensation up to $50,000 in first year, and 30% of compensation up to $50,000 in subsequent four years.

• Journalist must meet a minimum of 100 hours of work per quarter to qualify as an eligible employee.

Local Newspaper and Local Media Advertising Credit

This credit will provide small business financial flexibility to spend on advertising in local newspapers and media.

• Five-year credit of up to $5,000 in first year and up to $2,500 in subsequent four years.

• Credit covers 80% of advertising costs in first year and 50% in subsequent four years. (To receive full $5,000 in first year and $2,500 in subsequent four years, a small business would have spent at least $6,250 and $5,000 respectively.)

• To increase flexibility, small businesses may utilize this credit to advertise with local television and radio stations, in addition to local newspapers.