• by Ray Schultz , May 22, 2025

Google, which joined California in promising funding for newsrooms in the state, has now jumped on board in reducing that support.

Earlier this week, California announced that its expected $30 million payout to support newsrooms will be cut by $20 million during the state’s 2025-26 fiscal year. 

Google is now following suit, reducing its $15 million commitment by a third, according to multiple reports.

The result is that combined funding will now total $20 million, down from the $45 million originally committed.

Reports say that Google could still increase its contribution. 

On the California side, Governor Gavin Newsom (D) is facing a $12 billion increase in the state’s anticipated budget shortfall. 

Last  year, California reached an agreement with Google that would provide funding to newsrooms and create an AI accelerator while avoiding a legal showdown with Google and other firms.

This resulted in creation of the News Transformation Fund, through which Google was to pay $55 million over five years, starting with $15 million in the first year, and the state was to provide $30 million in the first year and $10 million per annum over the next four years.

“We appreciate the leadership of Governor Newsom and Assemblymember (Buffy) Wicks in fulfilling the framework established last year,” says Jaffer Zaidi, vice president of global news partnerships at Google’s parent company Alphabet according to Politico.

Zaidi adds, “We’re committed to its success, and based on the agreement, we’re pleased to match the State of California’s initial contribution to the Civic Media Fund.”