Illinois is injecting $4 million into its local newsrooms through a new tax credit program aimed at retaining and hiring journalists. This initiative, part of a broader effort to combat the local news crisis, has distributed funds to 40 news entities operating 120 outlets across the state.
Key Takeaways
- Forty Illinois local news entities received $4 million in state tax credits.
- The program aims to encourage the retention and hiring of journalists.
- Funding supports a diverse range of news outlets, with most going to those outside the Chicago metro area.
- Major publishers like Gannett and Alden Global Capital were notably absent from the initial recipient list.
Program Overview
The new law, passed in May 2024, makes available $25 million over five years in refundable tax credits for local news organizations. In its first year, $5 million is allocated, with $4 million designated for retaining existing journalists and $1 million for hiring new ones. The credits are distributed on a first-come, first-serve basis to eligible outlets that consistently publish original local content and employ journalists.
Distribution and Recipients
Documents reveal that the $4 million in tax credits has been awarded to 40 news entities, encompassing legacy organizations, small community newspapers, digital startups, and public broadcasters. The majority of the funding has been directed to newsrooms outside the Chicago metropolitan area, with nonprofit outlets receiving 30% of the funds. Lee Enterprises, a significant publisher, emerged as the largest recipient, securing $375,000 across applications for four of its newspapers in the state.
Addressing the News Desert Crisis
Illinois is grappling with a significant decline in local news, with 45% of its newspapers lost since 2005 and a 54% reduction in newspaper employees in the decade ending in 2023. The state currently has five news desert counties, impacting over 53 million Americans nationwide who lack access to professional local news. State Senator Steve Stadelman, who chaired the Illinois Local Journalism Task Force, expressed satisfaction with the program’s swift rollout, stating, "I’m really pleased that we’re getting money out the door already."
National Context and Future Outlook
Illinois’ initiative marks a pioneering effort by a state to directly support local news organizations through tax credits for employing journalists. This comes as other states and municipalities are also exploring legislative interventions to support local journalism. While New York allocated a substantial $90 million, its program has yet to disburse funds. The Illinois program still has over $1 million available in tax credits for 2025, with a significant portion unclaimed for newsroom expansion.
