Just two years after Gavin Newsom brokered a $250 million deal with Google and Meta for them to help preserve the local newspapers that their business models have destroyed, Newsom himself is now dismantling the deal.  

Back in 2024, Governor Gavin Newsom signed a deal that persuaded Google and Facebook parent company Meta to pay $250 million over five years to help save local California newspapers, a medium whose advertising had been completely siphoned off by Google, Facebook, and Instagram, among other companies. At the time, Newsom declared, “This agreement represents a major breakthrough in ensuring the survival of newsrooms and bolstering local journalism across California — leveraging substantial tech industry resources without imposing new taxes on Californians.”

Fast forward a year and a half later, and Newsom has quietly killed the deal. Newsom just introduced his proposed $400 billion budget for 2025-27, and Bay Area News Group reports that Newsom has eliminated the newspaper subsidy in that budget.  

Moreover, Newsom’s office has not commented on why, or given any explanation for doing this. But other parties have plenty of comment about the program being eliminated.

“It seems shockingly short-sighted when it comes to supporting local journalism which by now we know has no commercial future,” University of Pennsylvania professor of media policy Victor Pickard told the News Group. “I understand there may be budget shortfalls and there are always thoughtful decisions that need to be made about funding … but local journalism should be a higher priority.”

The state of California was paying into the fund, as were tech companies like Google and Meta. California contributed $10 million in 2025, which was matched by Google, though Meta’s contribution is not mentioned. This year, Google will make like Gavin Newsom, and not contribute to the program.

And the company put out a pretty cheeky statement about how they don't have to pay the $10 million per year now that the state's not paying their share, either.

“We stand ready to match the state’s contribution to the Civic Media Program and are awaiting the final budget later this year,” a Google spokesperson told the News Group.

Related: Meta Wins Antitrust Battle, Does Not Have to Spin Off Instagram or WhatsApp [SFist]

Image: NEW YORK, NEW YORK - DECEMBER 03: California Gov. Gavin Newsom speaks during the 2025 New York Times Dealbook Summit at Jazz at Lincoln Center on December 03, 2025 in New York City. NYT columnist Sorkin hosted the annual Dealbook summit which brings together business and government leaders to discuss the most important stories across business, politics and culture. (Photo by Michael M. Santiago/Getty Images)