Local Journalism Sustainability Act

The Local Journalism Sustainability Act (HR 7640) is a bill introduced into the United States House of Representatives on July 16, 2020, by Representative Ann Kirkpatrick (D-AZ-2).[1] On November 12, it received another co-sponsor bringing the total to 78 (20 Republicans and 58 Democrats). This act would provide tax credits to support local newspapers:

• Up to $250 per year per individual to cover 80 percent of subscription fees to local newspapers for the first tax year and 50 percent for subsequent tax years (4-1 match the first year, 1-1 match for an additional four years).[2]
• Up to $12,500 per quarter ($50,000 per year) to reduce employment taxes for a local newspaper to hire and pay journalists.[3]
• Up to $5,000 per year for a small business to cover 80 percent of advertising with local media (local newspapers or broadcast stations) the first year after this act takes effect and up to $2,500 per year for another four years to cover 50 percent of such advertising.[4]

This act defines a ‘local newspaper’ as any print or digital publication whose (A) primary content is news and current events, and (B) at least 51 percent of its readers (including both print and digital versions) reside in a single (i) State or a single possession of the United States, or (ii) area with a 200-mile radius. To qualify, a 'local newspaper' must have been in continuous operation for two years prior to the enactment of this bill.[5]

Discussion

On July 21, 2020, The Arizona Republic discussed this bill, noting that, “More than 150 news companies and papers have undergone pay cuts, furloughs, layoffs or even shut their doors for good as a result of the pandemic, according to the Poynter Institute, a journalism think tank."[6] More recent reports from the Poynter Institute document further reductions in news.[7]

The bill is supported by multiple organizations concerned about the decline of local newspapers and the threat that poses to democracy.

• David Chavern,[8] the President and CEO of News Media Alliance, wrote, "As journalists are on the front lines reporting on the coronavirus crisis, ... local news publishers have been dealt a major blow from the contraction of the local advertising market. The Local Journalism Sustainability Act ... would help ensure local news publishers survive the current crises, and that they are around to cover the next ones."[9]

• Dean Ridings,[10] CEO of America’s Newspapers,[11] reminded readers of what happened to Bell, California, a suburb of Los Angeles with only 37,000 people of modest incomes, after its local newspaper died in 1998 or shortly thereafter: When the Los Angeles Times started reporting on it in 2010, the city was almost bankrupt in spite of major tax increases, because the city council had voted huge increases in annual compensation to roughly $100,000 for council members, $450,000 for the police chief, and almost $800,000 for the city manager.[12]

• Other supporters include Editor & Publisher, an American monthly magazine serving the newspaper industry,[13] and the Hoosier State Press Association.[14]

Jack Shafer, who writes about media for Politico, said, “Nobody will miss newspapers more than me when they finally vanish.” However, publishers and journalist may not honestly report on certain issues and events, given the history of politicians (usually Republicans like Mr. Trump) threatening to defund NPR and PBS when they don't like the coverage.[15] He asked, "You wouldn't put a dead man on a ventilator, would you?"[16]

See also

Wikiversity:Local Journalism Sustainability Act, an annotated transcript of a virtual (Zoom) forum on this and related issues.

Notes

1. Local Journalism Sustainability Act, 16 July 2020, Wikidata Q99305326.
2. Sec. 25E.
3. Sec. 3.
4. Sec. 45U.
5. Sec. 25E.(d).
6. Cleo Krejci (21 July 2020). "Subscribers, advertisers of some local news outlets could get tax credit under bill in Congress". The Arizona Republic. ISSN 0892-8711. Wikidata Q99306075..
7. Here are the newsroom layoffs, furloughs and closures caused by the coronavirus, Poynter Institute, Wikidata Q99306277.
8. David Chavern, Wikidata Q99828506.
9. David Chavern (16 July 2020), CEO Statement: The News Media Alliance Supports the Local Journalism Sustainability Act, News Media Alliance, Wikidata Q99828406.
10. Dean Ridings, Wikidata Q99306388.
11. America's Newspapers, Wikidata Q99306383.
12. Dean Ridings (19 August 2020). "Local Journalism Sustainability Act needs your support". Sealy News. Wikidata Q99306399..
13. "The Local Journalism Sustainability Act Needs Your Help, Now!". Editor & Publisher. 14 August 2020. ISSN 0013-094X. Wikidata Q99306310..
14. U.S. Representatives file Local Journalism Sustainability Act, Hoosier State Press Association, 17 July 2020, Wikidata Q99306323.
15. Jesse Rifkin (8 September 2020), Local Journalism Sustainability Act would encourage subscriptions and discourage layoffs at local newspapers, GovTrack, Wikidata Q99658489.
16. Jack Shafer (20 April 2020). "Don't Waste Stimulus Money on Newspapers: You wouldn't put a dead man on a ventilator, would you?". Politico. ISSN 2381-1595. Wikidata Q99658549..