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Newsom signs landmark bill aimed at giving lifeline to struggling California newsrooms

Gov. Gavin Newsom signed a landmark bill that would give a financial boost to California’s struggling newsrooms.

Assembly Bill 2222 will create refundable tax credits for California local news organizations based on the number of journalists they employ. It passed through both houses. It marks an innovative yet controversial attempt to slow the decline of local journalism.

The bill, called the Community Newsroom Employment and Workforce Sustainability Act, works by assigning a “job retention credit” of $20,000 per journalist for up to five positions, and after that $15,000 for every additional journalist. Part-time positions will be awarded half-credits. It also stacks an additional $15,000 credit for each new hire, to incentivize expanding journalist head counts.

Before signing the bill Wednesday morning, Newsom spoke about what he called the “assault on the free press and the First Amendment..coming from Washington D.C. and Donald Trump.”

“It’s journalists that need to report those stories and local journalists that need to uncover and sort of peel back the facade if democracy is going to survive, let alone thrive,” Newsom said.

The bill was supported by the California News Publishers Assn., of which the Los Angeles Times is a member and a wide range of other community news boosters. Backers said it could be a lifeline to local news organizations, many of which have struggled to maintain staffing levels over the past two decades.

California has lost more than 12,000 of its local journalists since 2002, according to nonprofit advocacy group Rebuild Local News. And almost 40% of all local U.S. newspapers have vanished, according to an annual report on the state of local news put out by Northwestern University’s Medill journalism school.

To pay for the credits, the bill would amend California’s tax code to align with a little-discussed component of President Trump’s “Big Beautiful” tax bill that expanded taxes on some companies by eliminating a deduction for executive salaries of over $1 million annually.

It is common practice for the state to consider aligning its tax code with the federal structure to make filing taxes easier and administering them more cheaply. But California has not yet sought to adopt this federal tax change, a move which would increase tax revenues to the state.

The California Taxpayers Assn. and groups representing business interests such as the California Chamber of Commerce oppose the bill because it raises taxes on employers that they argue already face billions of dollars in new taxes.

They contend that the higher costs will be passed along to consumers.

The governor’s finance office issued an analysis opposing the bill for not including a cap on the tax credits, thus creating “unlimited fiscal liability to the state,” and argued the bill mainly subsidizes existing activity rather than encouraging the creation of new jobs.

While speaking with reporters on Wednesday, Newsom acknowledged some of the concerns that have been raised about those who will receive benefits from the bill’s funds, specifically hedge funds and billionaire owners and outlets who he says spread propaganda.

“It does subsidize those that don’t need to be subsidized,” he said. “We have hedge funds in this space. We have billionaires in this space. We have people that are profiteering in this space by gutting the newsrooms and extracting value out of the space that also are the beneficiaries.”

Newsom said he chose not to veto the bill because he believes its benefits outweigh the liabilities. He added that he hopes the legislature and next governor can work to narrow down who benefits most from the legislation.

“We should not be subsidizing hedge funds,” he said. “We should be focused on where the need is the greatest, in my humble opinion, and I do think when you have no cap, the limitlessness of this…to some of the most well-heeled organizations, where now they simply could pull from this bill the benefits that they didn’t even ask for or need, is self-evident.”

Assemblymember Chris Ward (D-San Diego), who authored the bill, said the governor’s signature shows California’s commitment to the free press at a time when newsrooms are shrinking and misinformation is rampant.

“Local journalism is the backbone of an informed democracy, and today California made clear that the people doing this essential work are worth investing in,” Ward said in a statement. “This historic investment will help keep reporters in our communities, strengthen nonprofit and public media, and ensure Californians continue to have access to trusted, fact-based local news.”

In signing the bill, Newsom emphasized the role of journalism in uncovering scandal and wrongdoing.

“The L.A. Times to their credit did a big investigative piece on Bell, and people getting paid a million dollars in some cases, local government officials, a million damn dollars a year. No one would have known had it not been for local journalism. How many more Bells are out there, not just in this state, but all across the country?”

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Some Democrats are recalibrating their approach to transgender issues as they seek a path to power

California Gov. Gavin Newsom does not like being on Donald Trump’s side on any issue.

But when it comes to transgender girls and women in sports, particularly at the school level, the Democrat said he largely agrees with the Republican president. Newsom, one of his party’s leading White House prospects, believes it’s “deeply unfair” for people who are assigned male at birth to compete against girls.

“I don’t want to be on that side of it, but I’m being honest — I’d be lying to you if I said differently,” Newsom told the Associated Press as he was campaigning recently in South Carolina. “I haven’t been able to figure out how to make it fair from my perspective.”

Newsom is not alone.

While most Democratic officials remain steadfast supporters of the transgender community, an increasing number in red and blue states are distancing themselves from their party’s unflinching support for the transgender community’s policy priorities, such as allowing athletes to compete on teams that match their gender identity. The shift follows years of conservative attacks against Democrats on the divisive issue, which affects a relatively small number of transgender people and their families, but has emerged as one of Republicans’ most potent political weapons in the Trump era.

Soul searching over transgender issues is one facet of a sprawling identity crisis that Democrats are confronting during the midterms and before the next presidential election. Although they risk a backlash from their progressive base, there is also a sense in some corners that the party must evolve on an issue where the overwhelming majority of voters — even many Democrats — agree with Trump.

The issue was a central theme for Trump and his Republican allies on the main stage at their midterm convention in Dallas last week, where the president said he hoped Democrats would continue to stand up for transgender girls and women who want to compete in girls’ and women’s sports.

“I’m petrified that they’ll change,” he said. “That will really hurt us.”

Republicans are already replaying some of the same political attacks that they used against Kamala Harris in the presidential campaign two years ago, when they said she’s “for they/them, not you.” On Friday, they released a new advertisement targeting James Talarico, the Democratic nominee for Senate in Texas, with the same phrase.

Democrats confront difficult political terrain

A political group backed by billionaire Trump ally Elon Musk has begun running digital ads targeting Democrats in key Senate races in Texas, Ohio and Alaska, accusing them of allowing men to compete in women’s sports.

In Texas’ pivotal Senate contest, the new ad from Musk’s America PAC opens with a video clip of Talarico saying that “God is nonbinary.”

Talarico began to distance himself from those positions months ago. He went further in a Fox News interview last week, saying he would vote in favor of a national ban for gender-affirming surgeries for transgender minors, which are rare.

“I’ve missed the mark on some of my past statements. I will be the first to admit it,” Talarico said in an interview near the Republican convention site. “I think the reason that politicians in that convention center across the street want to talk about six sexes is because they don’t want to talk about $6 diesel.”

In Iowa, State Auditor Rob Sand, the Democratic Party’s nominee for governor, has spoken out against transgender athletes competing in women’s sports as a matter of fairness. Ohio Democratic gubernatorial nominee Amy Acton has taken a similar position, although she has drawn criticism from the left for adopting Trump’s language after saying she opposed “boys playing in girls’ sports.”

And in deep-blue Massachusetts, transgender rights became a defining campaign issue during the state’s recent Democratic U.S. Senate primary, illustrating the potential backlash that party members can face.

Sen. Ed Markey, 80, secured the nomination and later credited his win to not shying away from advocating for transgender rights. He used the issue to attack his Democratic opponent, Rep. Seth Moulton, who had said he wouldn’t want his daughters to play against transgender athletes.

Moulton apologized for his comments, which drew outrage from some progressives, but the damage was done.

While Moulton lost his primary, his position — not Markey’s — is in line with the majority of voters nationally.

A June poll from Quinnipiac University found that about 7 in 10 registered voters think that transgender women and girls should not be allowed to play on women’s and girls’ sports teams. About one-quarter think they should. Democrats are divided, with about half saying transgender women and girls should be allowed and about half saying they should not.

A Pew Research Center poll conducted last year found that just over half, 55%, of Democrats would be “not too” or “not at all” comfortable with athletes playing on teams that don’t match their sex at birth, while 21% said they were “somewhat” comfortable and only 23% said they were “extremely” or “very” comfortable with this.

There’s division among activists

Markey’s public commitment to transgender rights stood out because Democratic politicians are increasingly running away from the issue, said Tyler Hack, executive director of the Christopher Street Project, which is dedicated to electing supporters of transgender rights to federal office.

“The reality of being a transgender person in America in 2026 is that on election nights, while other folks are talking about who had a good night and who had a bad night, sometimes you are quietly wondering, ‘Am I going to be OK?’” Hack said.

At the same time, even transgender activists are divided over supporting Democrats who have positions that are unfriendly to transgender people.

Erin Reed, an advocate and independent journalist covering transgender issues, this month put out a guide flagging Democratic candidates who she accused of taking anti-transgender positions. She highlighted 15 states that have such Democrats, saying that she would not vote for the “worst offenders” even if it means a Republican wins.

She doesn’t want Democrats to see that “throwing transgender people under the bus is a winning strategy.”

“One seat can be won back,” Reed wrote. “A party cannot.”

Meanwhile, Hack would probably vote for a Democrat even if that candidate supports some policies the Christopher Street Project opposes, in hopes that the party can take control of Congress. However, those candidates shouldn’t expect the organization’s endorsement.

“While I hope many of them win, I think they can do it without our resources and without our support,” Hack said.

Laws are changing around the country

The political debate is evolving as transgender people increasingly become the target of conservative backlash through state laws and the Trump administration.

Sports participation has become one of the main fronts in a political battle over transgender rights, although most Republican-controlled states have also implemented policies that affect a bigger slice of the population. There are bans on some gender-affirming health care for transgender young people and rules against transgender people from using the bathrooms that match their gender identity in schools and occasionally other public places.

At least 25 states are now enforcing laws or policies banning transgender women and girls from competing in at least some women’s and girls’ sports and three others have adopted laws but have enforcement blocked by the courts.

Earlier this year, the U.S. Supreme Court upheld state laws barring transgender girls from school teams.

Transgender athletes make up a small portion of team rosters. NCAA president Charlie Baker testified in 2024 that he knew of fewer than 10 transgender college student-athletes out of more than 500,000 total.

The debate is a preview for 2028

The debate within the Democratic Party heading into the 2026 midterms offers a preview for those Democrats contemplating presidential bids in 2028.

Newsom, who is considered a frontrunner in the shadow primary, highlighted his long record of supporting LGBTQ+ priorities, including sanctioning same-sex marriage as the San Francisco mayor decades ago and later appointing the first trans judge in California history.

But in sports, he thinks it’s unfair to allow people assigned as males at birth to compete against girls.

“It’s a hard issue. I struggle with it,” Newsom said. “I think people know where my heart is, my soul is. I have a trans godson.”

Illinois Gov. JB Pritzker, another likely Democratic presidential contender, has taken the opposite position.

He has consistently criticized state-level bans and restrictions on transgender athletes, calling them “bullying” and a “setback for equality.” Following the recent Supreme Court ruling that upheld state bans on transgender athletes, Pritzker, whose cousin is transgender, reaffirmed his position on social media.

“There’s a place for you in Illinois,” he wrote.

In Pennsylvania, Democratic Gov. Josh Shapiro opposes bans on transgender athletes in school sports, which he’s called cruel and designed to discriminate. He argues that athletic participation and eligibility should not be dictated by politicians, but rather handled by local athletic organizations — a stance in line with several LGBTQ+ groups.

He’s also raised questions of fairness, however.

“Look, I think it’s a tough deal being born into the wrong body. And I don’t think these kids deserve to be persecuted and bullied by the president of the United States,” Shapiro told The Atlantic last year. “I also don’t think they deserve an unfair advantage on the playing field.” Research has been mixed on whether transgender women have advantages in sports, and it depends partly on whether they went through puberty as boys.

Former Transportation Secretary Pete Buttigieg, who is gay and a potential presidential contender, said on Fox earlier in the year that he takes people seriously on both sides of the debate “whether you’re talking about parents who are wondering what this means for fairness for their kids competing, or parents who want to make sure that their kids aren’t being discriminated against and get a chance to participate.”

“But I also have to tell you,” he added, “I would be surprised if this is a top three or even a top 10 voter issue in the midterms this year.” ___

Peoples and Mulvihill write for the Associated Press. AP writers Kimberlee Kruesi in Providence, R.I., and Amelia Thomson DeVeaux in Washington contributed to this report.

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Teoscar Hernández delivers Dodgers to thrilling comeback win

Teoscar Hernández stepped into exactly the kind of situation the Dodgers had failed to capitalize on during the past couple of games: runners in scoring position. And with one out in the ninth inning, the Dodgers were running out of chances for a comeback.

Hernández worked a full count against St. Louis closer Riley O’Brien with runners on first and second. Then he got a sinker up and over the middle of the plate, a pitch he could drive. And he did.

Hernández lined it into the left-center field gap. Tommy Edman scored easily, and Mookie Betts slid across the plate head first as the throw came in high and too late.

The Dodgers walked off the Cardinals with a 3-2 victory Thursday, narrowly avoiding a series sweep at Dodger Stadium.

“We needed it,” manager Dave Roberts said. “Obviously for seven innings, it didn’t look good at all. Then we found a way to scratch one across. But a win’s a win, however it looks.”

Before Hernández’s walk-off double, the Dodgers (83-57) had taken 26 at-bats with runners in scoring position over two games. Only one of those had resulted in a hit.

Hernández, however, unlocked something on a long fly out he hit in Detroit on Saturday.

“It’s just the way my body was reacting, was more under control,” he said. “I was able to notice everything that I was doing, even though it was an out. …That was the swing that is leading to all the good results that I’ve been having lately.”

Hernández, who entered this series with a .668 OPS against right-handed pitchers, had been struggling for so long that Roberts contemplated a left-field platoon.

Teoscar Hernández hits a walk-off double against the St. Louis Cardinals at Dodger Stadium.

Teoscar Hernández hits a walk-off double against the St. Louis Cardinals in the ninth inning Thursday at Dodger Stadium.

(Eric Thayer / Los Angeles Times)

“I told Dave, if you feel like you have to use somebody else in there, just do it,” Hernández said. “But know that I am going to keep working and I’m going to try to be ready for the times that you need me.”

On Sunday in Detroit, Hernández hit a home run off Framber Valdez. And when rosters expanded on Sept. 1, the Dodgers decided against bringing up an outfielder who could share playing time with Hernández, betting that he could end his slump.

Hernández went six for 13 in three games against the Cardinals (70-71), with Roberts remarking it was “as good as I’ve seen him versus [right-handers] since April.”

“I’ve always said that we’re better when he’s in the lineup,” Roberts said. “But performance certainly matters, and this series, albeit a small sample, was really good. As you get to the postseason and towards the end of the season, we’ve got to start figuring out who we can play, who we can count on, who’s dependable. And the at-bats he’s taken these last three games, really good.”

Hernández and Edman — hitting leadoff in place of Shohei Ohtani, who got the day off while dealing with a nagging biceps problem — were the only Dodgers with hits Thursday. Edman led the team with four, but Hernández’ second knock was the most important one.

“It was huge to finally get that big hit,” Edman said of Hernández. “We were kind of pressing a little bit in those first two games. Everybody was kind of trying to do too much in the big spots. Teo came through huge in that moment. Just can’t say enough about him, and that was just such a huge at-bat, and able to kind of steal that win today.”

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Bill to aid California newsrooms now on the governor’s desk

California lawmakers have approved a bill that seeks to throw a lifeline to the state’s struggling journalism organizations.

Assembly Bill 2222, which would create refundable tax credits for California local news organizations based on the number of journalists they employ, joins a litany of bills on Gov. Gavin Newsom’s desk.

The state Senate passed the bill on Sunday and the Assembly narrowly approved its amendments on Monday to send the bill to the governor’s desk, with some Republican lawmakers pulling their previous “yes” votes.

The approval comes just as the Legislature is set to adjourn its two-year session early this week.

The bill, introduced by Assemblymember Christopher M. Ward (D-San Diego) would work by assigning a “job retention credit” of $20,000 per journalist for up to five positions, and after that $15,000 for every additional journalist. Part-time positions would be awarded half-credits. It also stacks an additional $15,000 credit for each new hire, to incentivize expanding journalist head counts.

“This measure is a safety net for news outlets on the verge of closure,” said former state Sen. Steve Glazer, who is a proponent of the bill and during his Senate term pushed similar legislation.

Proponents may face an uphill battle persuading Newsom to sign the bill, which creates a unique revenue stream to pay for the program. Newsom typically spurns laws that make changes to the state budget after those fiscal discussions conclude in the first half of the calendar year.

AB 2222 represents the latest attempt by California lawmakers to bolster the news business, with governments globally discussing similar efforts. Canada implemented newsroom payroll tax credits in 2019 amounting to about $13,750 per journalist in an eligible newsroom.

AB 2222 would create the largest relief plan in the U.S. to date, with the state tax board estimating it would make more than $40 million available to the state’s newsrooms annually.

The California Taxpayers Assn. and groups representing business interests such as the California Chamber of Commerce opposed the bill because it raises taxes on employers.

The governor’s finance office issued an analysis opposing the bill for failing to outline a cap on tax credits and for seeking to subsidize existing jobs rather than encouraging the creation of more journalism jobs.

The bill is supported by the California News Publishers Assn., of which the Los Angeles Times is a member.

Newsom has until Sept. 30 to sign or veto bills.

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