Canada’s proposed federal budget includes some good news for local journalism. The federal government is extending its journalism tax credit by $501 million, expanding eligibility to audio and audiovisual news organizations, and renewing the Local Journalism Initiative, which supports journalism in underserved communities.

Sarah wrote about the Local Journalism Initiative in its early days. A study earlier this year found that reporters paid with LJI funding believed they maintained their roles as watchdogs and wrote balanced stories, though two-thirds of interviewees were concerned about the perception of a conflict of interest. A growing number of journalists say the benefits of government subsidies for journalism outweigh the drawbacks.

A recent report in The Tyee suggests government support is essential to the survival of local media in Canada. (The Tyee has received support from the Local Journalism Initiative.)

“It’s either this or death, frankly,” LJI program director and Canadian Association of Journalists president Brent Jolly told The Tyee. “It’s not about local news editors getting their marching orders from the Prime Minister’s Office like some conspiracy theorists want you to think. It’s about infrastructure.”

Lisa Sygutek, publisher of the Crowsnest Pass Herald in Alberta, credited the LJI with growing the publication from “a 16-page paper to a 24-page paper.”

Read more in The Tyee’s look at Canadian local news here.

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Sophie Culpepper is a staff writer covering local news at Nieman Lab. You can reach her via email ([email protected]), Signal (sculpepp.28), or Bluesky DM.

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