Canada proposes permanent federal funding for local news journalism

The Canadian government proposed a 2026 budget that makes the Local Journalism Initiative a permanent program to support news in underserved areas.

This initiative provides funding for reporters to cover local issues like city hall and school boards in communities with limited news coverage. The proposed budget would increase funding for the program to $134 million over four years, followed by $41 million in annual ongoing funding.

News Media Canada president and CEO Paul Deegan stated that the government recognizes how major technology companies have impacted local news. The budget also extends a 35% tax credit on newsroom salaries through 2028 and expands this credit to include radio and television newsrooms for the first time. This tax credit refunds 35% of a newsroom employee's salary, up to $29,750 per journalist per year.

Additionally, the government added $300 million over two years to CBC/Radio-Canada to help the public broadcaster meet the needs of Canadians. The Canadian news industry also receives money through the Online News Act, which brings in $100 million annually from Google. Of that amount, $63 million is set aside for news publishers. Paul Deegan noted that these two measures combined provide about $47,000 per journalist per year.

While the tax credit helps maintain newsroom staff, an advisory board found that the requirement to employ at least two journalists at arm's length from owners excludes small family-owned newsrooms.