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Panel hears bill to fund local journalism with a tech platform surcharge

Senate Ways and Means Committee · February 5, 2026

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Summary

Substitute SB 5,400 would create a Washington Local News Sustainability Program funded by a surcharge on large covered platforms, with grant priorities for small newsrooms and a fellowship at WSU. Supporters including newspapers and local nonprofts called it essential to preserve local reporting; tech and business groups warned of legal risk and unintended costs.

Jarrett Sacks, staff to the Labor and Commerce Committee, briefed substitute SB 5,400, which would establish a Washington Local News Sustainability Program in the Department of Commerce. The program would distribute grants to eligible news organizations that meet minimum staffing thresholds; a fraction of funds would be reserved for outlets with 10 or fewer journalists. Funding would be provided from a local journalism investment surcharge on covered platforms (social media/search platforms with gross income above specified thresholds), capped per platform annually.

Industry testimony split along predictable lines. Alan Fisco, CEO of the Seattle Times Company, told the committee the industry faces a 'significant state of decline' and said a modest surcharge on major tech platforms would help preserve journalism jobs. The League of Women Voters and a range of small community newsrooms and nonprofit publishers supported the bill as a lifeline for local reporting and for the Murrow Fellowship program at WSU. Several technology and industry groups — including the Technology Industry Association — urged caution, citing litigation in other states and concerns under the Internet Tax Freedom Act and First Amendment reasoning.

Staff estimated a multi‑year revenue stream beginning in FY29 if implemented; the Department of Revenue warned the surcharge could not be implemented until 01/01/2028. Supporters emphasized that the bill does not rely on general‑fund dollars but on a narrowly targeted surcharge; opponents questioned constitutionality and urged federal coordination.

Quote: "We have to do everything we can to protect our journalism jobs that remain," said Alan Fisco of the Seattle Times.