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State pays newspapers cash for local journalism

Vermont puts public money Into local journalism — first test of government support for the press?

By Guy Page

Vermont took a notable step into the territory of publicly funded journalism this week, awarding $100,000 in state- and foundation-backed grants to 16 local news outlets.

Supporters say the initiative — the Local Civic Journalism Awards — is a pragmatic response to the collapse of the local news economy. Skeptics warn it edges government closer to the newsroom door than many journalists are comfortable with.

The awards, administered by the Vermont Secretary of State’s Office and paid for through a combination of state budget funds and philanthropic dollars, provide either $5,000 or $10,000 to small, mostly locally owned news organizations.

The panelists opted to award $10,000 to four news organizations that have particularly distinguished themselves in recent years by reimagining the way they foster civic engagement in their respective communities and sustain themselves for the future. They include:

The panel also chose to award $5,000 to a dozen news organizations that provide essential coverage to their communities. They include: 

For a state with one of the country’s smallest populations and one of the most fragile media ecosystems, the move is being framed as both experimental and urgent. A generation of shrinking newsrooms, shuttered weeklies, and declining ad revenue has pushed Vermont — as in most states — into a chronic shortage of reporters. That vacuum has increasingly left town budgets, school boards, local police, and state agencies operating with far less scrutiny than a decade ago.

The idea emerged from Sen. Andrew Perchlik, who secured $50,000 in the Fiscal Year 2026 budget. The Vermont Community Foundation matched it through Press Forward Vermont, reflecting a growing national philanthropic trend aimed at rescuing local news.

Secretary of State Sarah Copeland Hanzas framed the partnership as an investment in civic health, arguing that local democracy cannot function without access to “trustworthy, transparent” information. The awards, she said, are intended to support existing journalism rather than shape it — a critical distinction in a country where the First Amendment places strong guardrails around government interaction with the press.

Guardrails against political influence?

That sensitivity explains the program’s most significant structural feature: the creation of an independent, third-party selection panel run by the University of Vermont’s Center for Community News. Journalists, academics, and media experts — none from organizations eligible for funding — evaluated applications and made the final decisions.

This design is meant to insulate the awards from political pressure. It also acknowledges a tension baked into the model: The same state government that journalists cover is now helping determine which outlets keep their lights on.

Notably, the panel avoided awarding any statewide political newsrooms, focusing instead on hyperlocal outlets whose work is typically less partisan and more community-service-oriented.

Modest dollar amount, outsized symbolism

The money itself is small — $10,000 is unlikely to add a full reporting position, and $5,000 may only cover a few months of freelance work or essential operating expenses. But for many tiny Vermont newsrooms running on shoestring budgets, even modest support can be meaningful.

The awards also function as a public endorsement of the value of community journalism at a moment when trust in media remains polarized and fragile.

Paul Heintz of the Center for Community News acknowledged both the good news and the underlying alarm: Vermont has strong journalism, but much of it remains “struggling to stay afloat.”

As Vermont experiments with a public–private hybrid, other states are watching. If the program shows measurable benefits — more reporting, stronger civic engagement, better training pipelines — it could be expanded. If it raises concerns about conflicts of interest, it may be redesigned, or quietly abandoned.

Critics, including some press-freedom advocates nationwide, have historically warned that any government funding, even indirect, risks gradually eroding editorial independence. Supporters counter that the alternative — letting the market finish off small-town journalism — is more dangerous.

The coming year will provide the first evidence of which view prevails.

The bottom line

This inaugural round is small in dollars but large in precedent. Vermont is testing whether government can help sustain journalism without influencing it — a delicate balance likely to shape not just future policy, but public trust.

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