Question Period Note: Federal support measures for civic journalism and local news

Although new digital organizations are emerging amidst these closures, traditional news outlets, particularly local ones, are closing at a faster rate than new ones open. The impact of a struggling news ecosystem has serious societal implications, including on national identity, social unity, and institutional trust. The Government of Canada is investing in a range of support measures for media and journalism to maintain a strong, vibrant democracy and a Canadian population resilient to misinformation.

• The media landscape is undergoing profound transformation, and our government continues to support Canadian news media through structural and targeted support measures.
• Canadian Heritage recently launched an engagement exercise on direct support measures for journalism, magazines, and Indigenous media. With this process, we continue to adapt to the evolving needs of the industry and Canadians.
• The Government recognizes the need for a strong democracy and its principles. All our media and journalism support measures are designed to preserve and maintain press independence.

State of the Industry
• The digital transition and its new players are challenging the business model underpinning the news industry and causing changes in news consumption habits among the Canadian population, who are now reluctant to pay for news.
• The closure of 613 local media outlets in 391 Canadian communities since 2008 (Local News Research Project, April 2026) has created more news deserts and areas of news poverty.
• These factors are contributing to a decline in Canadians’ trust in media and institutions, amplifying conditions conducive to the spread of misinformation, polarization, and the decline in democratic practices.
• According to the Special Report on Foreign Interference in Canada’s Democratic Processes and Institutions, published in June 2024 by the National Security and Intelligence Committee of Parliamentarians, foreign interference activities have targeted Canadian mainstream and ethnocultural media and journalists. Commissioner Marie-Josée Hogue’s Public Inquiry into Foreign Interference final report, published in January 2025, found that disinformation represents an “existential” threat to Canadian democracy.

Stakeholder Engagement and Industry Trends
• In April 2026, the Department launched consultations on direct support measures for the news, magazine and Indigenous media sectors to optimize the use of public funds and adapt programs to the industry’s changing context and needs. A summary of the results is expected in July 2026.
• The Standing Committee on Canadian Heritage (CHPC) is undertaking a study on the “State of the Journalism and Media Sectors.” The Department continues to monitor the hearings, which are expected to continue until May.
• Google’s AI search summaries, for example, are reducing news publishers’ online traffic, contributing to the decline in digital advertising revenues for news publishers, threatening their relevance and sustainability. The government will continue to monitor developments in these matters closely.
• To avoid complying with the Online News Act, Meta’s decision to ban news content on its platforms in Canada, as of August 2023, has continued to decrease Canadians’ access to local news and increase their exposure to misinformation and disinformation.

Federal Support Measures for Media and Journalism
Structural Support Measures
• The Canada Periodical Fund’s Aid to Publishers component ($70.3 million annually) and temporary Special Measures for Journalism component ($12.8 million for 2025-26; $38.4 million over three years starting in 2026-27) support Canadian print and digital magazines and community newspapers. Daily newspapers are not eligible for funding in either component.
o For 2024-25, the Aid to Publishers and Special Measures for Journalism components funded respectively 708 and 673 Canadian community newspapers and magazines.
• As part of the Comprehensive Expenditure Review outlined in Budget 2025, the Canada Periodical Fund will be refocused to incentivize the creation of editorial content only, eliminating funding for paid subscriptions and single-copy sales.
• The Online News Act 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 through the Canadian Journalism Collective. As of December 2025, over 450 Canadian and Indigenous news businesses have received funding.
• Fiscal measures include:
o A refundable tax credit for journalistic labour enhanced to 35 percent per eligible employee, to a maximum of $29,750. The tax credit is planned to return to 25 percent per eligible employee starting in 2027; and
o The Registered Journalism Organization (RJO) status which allows designated media outlets to be exempt from income tax and to issue tax receipts for donations they receive.

Targeted Support Measures
• The Local Journalism Initiative ($19.6 million annually) funds journalist positions in print and online media, and community radio and television stations, through not-for-profit organizations, to support the creation of civic journalism in underserved communities.
o Between fiscal years 2019-2020 and 2023-2024, the initiative supported the hiring of 470 journalists in average per year.
• The Collective Initiatives ($2 million annually) component of the Canada Periodical Fund funds projects to strengthen the viability of the community newspaper and magazine industry.
• The Changing Narratives Fund ($10 million over 3 years, starting in 2024-25), which encourages greater participation of diverse communities and organizations in the culture and media sectors, is delivered through the Canada Media Fund, the Local Journalism Initiative and the Collective Initiatives component of the Canada Periodical Fund.
o The Changing Narratives Fund will not be renewed and will sunset, as planned, on March 31, 2027.

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