New York is now the first state in the nation to incentivize hiring and retaining local journalists, a move that could change the course of local journalism in the U.S.

Gov. Kathy Hochul and the state Legislature unveiled the final state budget Saturday, including a payroll tax credit for local news outlets, modeled on the Local Journalism Sustainability Act.

Approval of the tax credit comes at a watershed moment for the journalism industry: New York State has experienced hundreds of newspaper closures in the past few decades.

The game-changer for the local news industry comes just months after the launch of the Empire State Local News Coalition, an unprecedented, grassroots campaign powered by more than 200 community newspapers across the state, including North Country This Week / NorthCountryNow.com.

“I’m elated that our first-in-the-nation Local Journalism Sustainability Act is passing in the state budget. A thriving local news industry is vital to the health of our democracy and it’s our responsibility to help ensure New Yorkers have access to independent and community-focused journalism,” said Sen. Brad Hoylman-Sigal, the Senate bill sponsor.

“Our efforts will help ensure that our democracy will not die in darkness.”

Bill Shumway, editor and publisher of North Country This Week and NorthCountryNow.com, echoed the senator’s comments.

“This measure will help ensure local media outlets throughout the state will have the financial resources to continue reporting on village and town boards, county legislatures and city councils, a service essential for the success of democracy at the local level,” he said.

The program — $30 million per year for three years — allows each eligible newspaper and broadcast business to receive a 50% refundable tax credit against the first $50,000 of an employee's salary, up to a total of $300,000 per business.

Of the total, $4 million will be allocated to incentivize print and broadcast businesses to hire new journalists.

The remaining $26 million will be split evenly between businesses with fewer than 100 employees and those with more than 100 employees, ensuring that hyperlocal, independent news organizations have a fair shot at access to these funds.

After stalling for years, the Local Journalism Sustainability Act catapulted into a top legislative priority this session following the early-2024 founding of the Empire State Local News Coalition.

The coalition mobilized support from hundreds of New York hometown papers as well as a broad range stakeholders from around the country, including the Rebuild Local News Coalition, Microsoft, and El Diario. Organized labor including NYS AFL-CIO, CWA District 1, and national and local news guilds also played a critical role in mobilizing support for this historic bill.

Zachary Richner, founder of the Empire State Local News Coalition, said the measure is a “critical investment given that hundreds of New York’s newspapers have closed since 2004, leaving too many New York communities without access to vital local information.”

He said the “objectivity of this credit shows that there is a fair way for public policy to support local news without jeopardizing journalistic integrity. This program is a model for other states across the U.S. to follow as communities across the country raise their voices to save local news.”

Richner said Sen. Hoylman-Sigal’s advocacy for the tax credit was instrumental in moving it through the legislative process.

“Other states and stakeholders interested in replicating this playbook and hearing about lessons learned should reach out to us at info@savenylocalnews.com,” Richner said.

Since launching in February, the coalition quickly mobilized stakeholders across the state to rally behind the bill. In addition to rallying with grassroots advocates in Westchester and Albany, members led petition drives, letter-writing campaigns, editorials, and advertisements sounding the alarm on the decline of local journalism.   

Goal of the Empire State Local News Coalition is to advocate for sound public policy that ensures the important work of local news organizations can continue across New York state. Through independent journalism, coalition members aim to serve, inform, uplift, and protect New York communities as well as the future of New York’s free press.