Question Period Note: Federal support measures for journalistic content

The Canadian government invests in a range of support measures for media and journalism to ensure the availability of news across the country.

The media landscape is undergoing profound transformations, and our government continues to support Canadian media to ensure the availability of news across the country.

For example, through the Local Journalism Initiative, we support over 400 journalist positions annually to help create local news in underserved communities.

We recognize the need for a strong, vibrant democracy and the principles that underpin it, including independence of the press. All our measures are designed to preserve and maintain this independence.

State of the Industry

The digital transition and its new players are challenging the traditional business model underpinning the news industry, leading to:

Changes in news consumption habits among Canadians, who are now reluctant to pay for news;

The closure of 525 local media outlets since 2008. During the same period, 229 local news outlets launched, including 123 digital-only outlets. However, only 101 of them are still in operation today;

News deserts and areas of news poverty.

Federal Support Measures for Media and Journalism

The government has introduced structural and targeted support measures respectively to sustain the operation of news organizations, support the creation of local news and support innovation and industry sustainability.

Structural Support Measures

The Canada Periodical Fund’s Aid to Publishers ($70.3 million annually) and Special Measures for Journalism ($38.5 million for 2022-2025) support Canadian print and digital magazines and community newspapers. Editorial expenditures are the main variable determining funding allocation.

The Special Measures for Journalism component supports free magazines and community newspapers, while the Aid to Publishers component exclusively supports paid circulation. Daily newspapers are not eligible for either component.

For 2023-2024, the Aid to Publishers and Special Measures for Journalism components funded respectively 759 and 651 Canadian community newspapers and magazines.

The Special Measures for Journalism component is slated to sunset in March 2025.

The Online News Act has created a regulatory framework in which Canadian news organizations are compensated for the journalistic content made available by digital platforms. Under this regulation, Google will contribute $100 million annually, indexed to inflation, to Canadian news publishers.

Fiscal measures include:

An enhanced refundable tax credit for journalistic labour of 35 percent per eligible employee, to a maximum of $29,750. The tax credit will be reduced to 25 percent starting in 2027.

15 percent non-refundable tax credit for digital news subscriptions (until 2025).

The introduction of Registered Journalistic Organization status for eligible media as a new category of qualified donee.

Targeted Support Measures

The Local Journalism Initiative ($58.8 million for 2024-2027) funds journalism positions in media organizations through not-for-profit organizations, to support the creation of civic journalism in underserved communities.

Print media, community radio and television, and online news services are eligible.

In 2022-2023, the Local Journalism Initiative funded 413 journalist positions to support the creation of local news in 1,543 underserved communities. 60 journalists provided coverage of Indigenous communities, 84 of ethnocultural communities, 161 of official language minority communities and 11 of 2SLGBTQIA+ communities.

The Business Innovation ($2.5 million annually until 2025-2026) and Collective Initiatives ($2 million annually) components of the Canada Periodical Fund respectively fund projects to support innovation and strengthen the viability of the Canadian community newspaper and magazine industry.

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