Forecast for 2026: Local News Legislation and Funding

Rebuild Local News is expecting another active year of interest, support and new proposals from legislators across the states, even as many U.S. states confront budget deficits. Here’s what lies ahead for legislation efforts and funding to strengthen local news in 2026:

Growing Interest in Requiring Government to Put More Ads in Local News

The most popular idea is likely to be the government advertising set-aside mandate, which directs more state advertising to community media without requiring additional public appropriations. Strong set-aside bills are already expected in New Jersey, Vermont, Maryland and Virginia. 

Advertising policy advocates in New York will gauge the new Zohran Mamdani administration’s interest in adding greater independence to the city’s successful ad boost program, which has directed $72 million toward community outlets over five years.

Refundable Employment Tax Credit

This policy provides direct support to newsrooms by addressing a core challenge: declining newsroom employment. In Maine, a bill has been drafted and sponsored, but it wasn’t introduced in 2026 due to the shortened, budget-focused legislative session. Support-building will continue throughout 2026, with passage anticipated in 2027. Other states, including New Mexico and Maryland, continue to show interest in pursuing similar policies.

Tax Incentives in Republican-Led States

In Kansas and New Hampshire, lawmakers are expected to consider tax relief for small businesses that advertise in community newsrooms.

Civic Information and Journalist Support

Pennsylvania’s split legislature is likely to review two proposals: a grantmaking Civic Information Consortium and a journalist fellowship program. Proponents are likely to get a warm reception in the assembly but long odds in the Republican-majority Senate. 

Consumer Subsidies at the City Level

In Seattle, mayor-elect Katie Wilson has signaled support for reviving a similar consumer-facing news voucher initiative. In Washington, D.C., council members will continue evaluating a local “news coupon” program for consumers.