California Gov. Gavin Newsom's new grant program for news organizations is drawing criticism from journalists and media watchdogs who argue the initiative could blur the line between independent reporting and government-backed media.

Daily Signal California correspondent Angelina Delfin reported that the controversy centers on a new program offering grants of up to $250,000 to qualifying California news organizations producing what the state describes as fact-based reporting.

"Governor Newsom is essentially paying for good press with your tax dollars," Delfin said, noting that the assessment came from independent journalist Nick Shirley.

"That's what independent journalist Nick Shirley told the Daily Signal when asked about Governor Gavin Newsom's new grant program for California newsrooms."

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Delfin explained that Newsom recently announced the California Civic Media Program, a public-private partnership with Google that will invest directly in California news outlets.

"Newsom announced a new initiative that will award grants of up to $250,000 to eligible California news organizations producing what the state describes as fact-based reporting," she said.

According to Delfin, the announcement has prompted concerns over whether elected officials should play any role in distributing taxpayer-backed funding to media organizations.

"But critics argue the program raises a fundamental question: Should politicians have any role in deciding which news organizations receive taxpayer-backed funding?"

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Delfin said those concerns have been heightened by Newsom's public criticism of investigative journalist Nick Shirley, whose reporting has focused on alleged government misconduct.

"Those concerns are amplified by Newsom's treatment of journalists like Nick Shirley, whose reporting has exposed alleged government failures earlier this year."

She noted that Shirley "helped expose more than 170 million dollars in alleged California hospice fraud," and previously "drew national attention for uncovering daycare fraud in Minnesota."

Rather than praising those investigations, Delfin said Newsom criticized Shirley publicly.

"Newsom publicly mocked Shirley on social media."

According to Delfin, critics see a contradiction between Newsom's criticism of an investigative reporter and his administration's effort to provide taxpayer-supported grants to other media organizations.

"Critics argue that contrast is difficult to ignore a governor who publicly ridicules an investigative journalist while simultaneously launching a taxpayer-supported program to fund other news organizations."

Delfin also highlighted criticism from Will Swaim, president of the California Policy Center, who questioned whether government funding is compatible with an independent press.

"Will Swaim, president of the California Policy Center, told the Daily Signal that government funding fundamentally changes the role of the press."

She noted that Swaim, who has worked in publishing since 1990, said he has never accepted government funding for his publications.

Delfin added that Swaim also criticized California's agreement with Google after Newsom supported legislation that would have required large technology companies to compensate publishers for their content.

"Swaim's argument is this: Once a newsroom accepts government money, it ceases to be truly independent."

The Daily Signal contacted Newsom's office for comment, according to Delfin.

"The Daily Signal reached out to Governor Gavin Newsom's press office for comment, but did not receive a response."

Delfin said questions have also emerged over who will ultimately determine which organizations receive the grants.

"Beyond the funding itself, critics have also questioned who will ultimately decide which news organizations receive taxpayer-backed grants."

She noted that applications will be administered by the James B. McClatchy Foundation but said some observers have raised concerns about the organization's neutrality.

"According to the program's website, applications are independently administered by the James B. McClatchy Foundation."

However, Delfin pointed to language featured on the foundation's website.

"On its homepage, the foundation features a statement titled 'Standing United for Immigrant Justice and Dignity,' condemning recent ICE raids and calling on civic leaders, institutions, and allies across California to quote reject complicity."

She added, "Not exactly the nonpartisan grant administrator you'd hope for."

Delfin concluded by noting that the first grant recipients are expected to be announced in the fall of 2026.

"The first round of grant recipients will be announced in the fall of 2026," she said.

"Until then, Californians will have to wait and see whether journalists like Nick Shirley, who built their reputations by exposing government failures, would have the same opportunity to receive taxpayer funds as the news organizations ultimately selected."

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