(The Center Square) – Minnesota lawmakers are considering legislation that would provide taxpayer funding to support journalism internships and local news operations through the Minnesota News Media Institute.
The proposal, included in the Senate omnibus jobs bill, would appropriate $250,000 for a “local news talent pipeline program” administered by the Minnesota News Media Institute, the nonprofit arm of the Minnesota Newspaper Association.
The bill was originally introduced in the House and Senate with a $500,000 appropriation.
Under the legislation, grant funding would support paid internships at Minnesota newspapers, television and radio broadcasters, and digital news platforms. The internships would focus on reporting, editing, media design and other operational functions.
Lisa Hills, executive director of the Minnesota Newspaper Association and Minnesota News Media Institute, said the organization introduced the legislation in response to mounting pressures on local news organizations.
“With everything that’s happening in the industry . . . we wanted to come up with a policy that would support community news,” Hills told The Center Square in an exclusive interview. “We thought this language would be a good start.”
Hills said the proposal builds off the institute’s longstanding internship program, which she said has more demand than available funding.
“Typically, we fund 10 to 12 interns with a $1,000 amount to newspapers that apply, and we have many more apply than actually get funded,” Hills said, adding that more than 30 organizations applied this year but only 10 received funding.
Supporters argue the funding, which has received bipartisan support, would help sustain local journalism while cultivating a future workforce for community news outlets.
“Accurate news is so incredibly important,” Hills said. “Accurate news in a community helps the community and helps share success stories and highlights and works as a watchdog of local government. Having an independent third party doing that is just incredibly important.”
Not everyone supports this funding though. Critics argue taxpayer funding for journalism creates concerns about government involvement in media.
John Phelan, an economist at the Center of the American Experiment, recently argued that news organizations do not meet the economic definition of a “public good,” rejecting the premise that taxpayer funding should be used to support news organizations some taxpayers may disagree with.
“There is no ‘free rider’ problem. It is simply the case that fewer people are willing to pay for the product,” Phelan said. “Even in basic terms, then, ‘news’ is not a public good, and this argument cannot be used to justify taxpayer support.”
Phelan also questioned whether government-funded journalism can remain politically neutral, pointing to Minnesota Public Radio and the Star Tribune as examples he believes demonstrate ideological bias in taxpayer-supported or politically connected media.
“If the Strib wants to produce yet another DFL press release masquerading as journalism, they have a First Amendment right to do so,” Phelan wrote. “But there is no duty for the average Minnesota taxpayer to finance it.”
While Hills emphasized bipartisan support for the proposal, saying lawmakers from both parties recognize the value of independent local reporting, Phelan argued the changing media landscape does not justify public subsidies.
“Since 2018, 97 local news outlets have closed across Minnesota, but does this mean that Minnesotans have less information than they did eight years ago,” he said. “There is a market for both, and government—and taxpayers’ money—shouldn’t be in it.”
The funding’s future remains uncertain as lawmakers negotiate final budget agreements before the legislative session adjourns on May 18. Hills said the measure currently remains in the Senate omnibus jobs bill but was not funded in the House version.
“It’s not because of lack of support,” Hills said. “Our House did not fund a lot of things.”
Hills said many operational details of the funding still need to be worked out if lawmakers approve the funding, including how the one-time appropriation would be distributed and administered.
“We’re hopeful, but until the last moment, we probably won’t know,” Hills said. “We’re hoping it’s the first step.”
