Washington state enacts local journalism investment surcharge effective 2026

On March 18, 2025, Washington State introduced Senate Bill 5400, a legislative proposal aimed at bolstering local journalism through a new financial mechanism. The bill seeks to address the declining revenue streams for local news outlets, which have faced significant challenges in the digital age.

The primary provision of Senate Bill 5400 establishes a "local journalism investment account" within the state treasury. This account will be funded by a new surcharge imposed on "covered platforms," which include businesses that generate income from digital advertising and content distribution. Specifically, starting April 1, 2026, these platforms will be subject to a surcharge of 1.22 percent on their gross income, with a cap of $6 million annually per entity. The funds collected will be allocated exclusively to support local journalism initiatives as outlined in the bill.

Key debates surrounding the bill have focused on its potential economic implications. Proponents argue that the measure is essential for preserving local journalism, which plays a critical role in community engagement and democracy. They emphasize that the financial support could help sustain newsrooms and foster investigative reporting that holds local governments accountable.

Opponents, however, raise concerns about the burden the surcharge may place on businesses, particularly smaller entities that may struggle to absorb the additional costs. Critics also question whether the bill effectively addresses the root causes of the decline in local journalism, suggesting that it may not be a sustainable long-term solution.

The bill's introduction has sparked discussions among media experts and economists, with some suggesting that while the initiative is a step in the right direction, it may require further refinement to ensure equitable implementation and to maximize its impact on the local journalism landscape.

As Senate Bill 5400 progresses through the legislative process, its outcomes could significantly influence the future of local news in Washington State, potentially serving as a model for other regions grappling with similar challenges in the media industry. The next steps will involve committee reviews and potential amendments as lawmakers weigh the bill's implications for both journalism and the business community.