The New York Times reported that a payroll tax credit for local news organizations could become law in the coming weeks.
The House passed the legislation earlier this month.
The decline in print advertising revenue has led to shakiness within the journalism industry, and funding could prove to be critical for many publications.
According to The Times, the Storm Lake Times could possibly receive $200,000 in federal subsidies and almost $500,000 over the course of four additional years.
In its first year, the publishing giant could potentially get over 30 million dollars, and millions of dollars in subsequent years.
The funding would serve an important purpose for individual communities according to a visiting professor at the Medill School of Journalism.
She said that it acknowledges that democracy starts at home.
The Senate needs to approve the ambitious Democratic-led social-spending plan that includes funding for universal pre-K for six years, as well as an expansion of Medicare to cover hearing aids.
The bill would allow for more than $1 billion to be allocated for newspapers, online news sites, radio and television stations, and additional organizations that focus on local news.
If the outlets are eligible, they could receive $25,000 for every journalist that is hired in the first year, with $15,000 set aside for the remaining four years.
According to The Times, any news outlet that is funded by a political action committee would not be able to take advantage of the benefit.
Publishers with over 1,500 employees at any one location would not be eligible for the tax credit.
Larger companies that focus on local news would be included.
The University of North Carolina Hussman School of Journalism and Media found that there are 200 counties in the US that don't have a local newspaper. The number of newspaper journalism positions fell from 71,000 in 2008 to 31,000 in 2020.
Local reporting plays a vital role in covering the nuts and bolts of government and the larger community fabric, according to backers of the proposal.
Conservatives jumped at the news of the tax credit, with House Minority Whip Steve Scalise of Louisiana calling it a partisan proposal.
He said that Biden and the Democrats in Congress were helping pay the reporters' salaries.
Local outlets are far from the confines of Washington, DC, so they would likely be receptive to the aid.
The editor and co-owner of The Storm Lake Times expressed that sentiment to The Times.
He told the newspaper that he was skeptical of things like local tax levies. We need help and I can't get it.
