SACRAMENTO, Calif. – California made history by becoming the first U.S. state to allocate millions of dollars from taxpayer money and tech companies to support journalism and AI research. Under the groundbreaking agreement announced on Wednesday, the state and tech companies will jointly contribute approximately $250 million over five years to bolster California-based news organizations and establish an AI research program. The funding is set to commence in 2025, with an initial $100 million allocated in the first year, primarily directed towards news organizations, as stated by Democratic Assemblymember Buffy Wicks, who facilitated the deal.

Governor Gavin Newsom hailed the agreement as a pivotal step in safeguarding newsrooms and enhancing local journalism in California. He emphasized the significance of utilizing substantial resources from the tech industry without imposing additional taxes on Californians. Newsom stated, “The deal not only provides funding to support hundreds of new journalists but helps rebuild a robust and dynamic California press corps for years to come, reinforcing the vital role of journalism in our democracy.”

Specific details regarding the state’s contribution, eligible news organizations, and the allocation for the AI research program were not immediately disclosed by Wicks’ office.

The agreement marks the resolution of a year-long dispute between tech giants and lawmakers over Wicks’ proposal to mandate companies like Google, Facebook, and Microsoft to share a certain percentage of advertising revenue with media companies for linking to their content. Opposition from the tech industry led to the bill facing backlash and ad campaigns, with Google even temporarily removing news websites from search results to pressure lawmakers.

Wicks expressed optimism about the partnership’s commitment to sustaining a free and vibrant press, empowering local news outlets throughout the state to continue their essential work. She emphasized that this collaboration is just the beginning of greater advancements in journalism support.

California has been exploring various strategies to combat the decline in journalism jobs, especially with the rapid disappearance of legacy media companies in the digital era. More than 2,500 newspapers have shuttered in the U.S. since 2005, and California alone has lost over 100 news organizations in the past decade.

The agreement has garnered support from prominent organizations such as the California News Publishers Association, representing over 700 news outlets, Google’s parent company Alphabet, and OpenAI. However, some journalists, including those from the Media Guild of the West, have criticized the deal, expressing concerns about its potential negative impact on California’s news organizations.

State Senator Steve Glazer, who previously authored a bill to provide tax credits to news organizations for hiring full-time journalists, believes this agreement undermines efforts to safeguard independent journalism in the long run.

State Senate President Pro Tempore Mike McGuire echoed similar sentiments, stating that the deal falls short in adequately addressing the challenges faced by California’s news industry. He highlighted the need for more substantial funding for newspapers and local media outlets to combat existing inequities.