Rebuild Local News Supports Hawai‘i Plan to Tap Social Media Advertising Revenue for Local News

On Feb. 12, Policy Director Matt Pearce testified before the Hawai‘i House Economic Development & Technology Committee in support of HB1458, which would tax major social media platforms’ ad revenue to fund broadband access and local news:

Chair Iligan, Vice Chair Hussey, and members of the Committee:

My name is Matt Pearce, and I am the director of policy for Rebuild Local News, the leading nonpartisan, nonprofit coalition developing and advancing effective public policies to strengthen local news and information. Our broad-based organization brings together the largest alliance of local publishers, labor unions, civic organizations and newsrooms representing both rural and urban communities. Together, these 55 organizations represent over 3,000 newsrooms and 15,000 journalists working to revive local news.

I write in support of HB1458 and its aim to provide a stable source of funding for community news programs in the years to come. Hawai’i’s communities could desperately use the support. In 2002, according to our research with Muck Rack, the United States had about 40 journalists per 100,000 residents. But today, Hawai’i only has about 6.1 journalists per 100,000 residents, ranking 42nd out of the 50 states.

Across the U.S. in recent years, lawmakers have considered or enacted a broad range of public policies to rebuild local news:

• Illinois enacted a refundable journalist employment tax credit in 2024 which made it more affordable for newsrooms of all types to employ and hire journalists. This $5 million a year program is supporting more than 260 local journalist jobs at 55 news entities operating more than 120 local outlets across the state: newspapers, digital news sites, broadcasters, commercial and nonprofit newsrooms alike. Recipients have reported plans to expand coverage or avert layoffs as a result. New York state has enacted a similar news employment tax credit program.
• Washington state, with the support of a broad-based local coalition, is currently considering a similar formula-based journalist employment grant approach, SB 5400, that would tax social media companies and search engines up to $6 million each, with funds distributed based on the number of journalists employed. Funding could also support a local journalist fellowship program. Lawmakers in Oregon are considering a similar employment-subsidy approach, SB 1580, funded via an arbitration-backed bargaining process that also proposes a new grantmaking civic information consortium similar to the program in New Jersey.
• California, New Mexico and Washington created publicly funded fellowship programs that place early career journalists in local newsrooms to provide coverage for underserved communities. The largest of these programs, the California Local News Fellowship program administered by UC Berkeley, has placed approximately 75 journalist fellows in newsrooms across the state.
• New Hampshire and Illinois lawmakers this year are considering bills from Republican sponsors to support community news by creating tax credits for small businesses that advertise in local news outlets, with the hopes of creating stronger business ties in the local community. On the budget-neutral front, lawmakers in Maryland are considering a bill, HB0043, to require government agencies to spend at least 50% of their advertising budgets in local media, mirroring similar policies in New York City, San Francisco and the state of California. We expect similar government advertising set-aside policies to be pursued this year in New Jersey and Vermont.

In all cases, we strongly advocate that public policies be designed to support the diverse models and mediums now used to produce community news, with safeguards against violations of our First Amendment freedoms by favoring certain viewpoints or interfering with independent news decisions. Other states are proving these objectives are achievable. Hawai’i deserves a similar effort.