Competition in journalism rests on fair play, transparency and integrity. Parliament in 2019 amended the Income Tax Act to subsidize daily news media on a promise taxpayers’ aid was temporary and transitional.
“There does need to be a deadline,” testified Bob Cox, then-chair of News Media Canada.[1] “The program itself is envisioned to be for five years and I felt that was an appropriate period of time for the transition because of course there will be news outlets, newspapers, that fail the transition, and you can’t give them forever,” he added.
“It’s important,” testified Cox. “I see this as a transitional program and temporary help. I don’t like the idea of a long-term subsidy for newspapers that becomes permanent.”
Temporary, transitional aid is now a permanent, secret subsidy for 141 news corporations.[2] It is the only federal program of its kind that does not mandate disclosure of actual payments to corporations.
When Blacklock’s reported a News Media Canada judges’ panel voted itself 100 percent payroll subsidies under the Local Journalism Initiative,[3] the group responded by concealing names of future recipients. When an MP requested “names of all outlets which received funding,” the Department declined.[4]
If recipients of $2,500 Canada Student Loan subsidies are named under proactive disclosure, taxpayers are owed similar transparency for newsrooms receiving payroll rebates up to $29,750 per employee.
Recommendation 1: Mandate disclosure of actual subsidies to named beneficiaries
News subsidies are paid without restrictions on use of aid. The insolvent SaltWire Network of Halifax used $5,174,847 in aid to pay delinquent taxes while laying off employees.[5]
Discourse Community Publishing of Sun Peaks, B.C. used its subsidy to hire foreign workers and was fined $10,000 for breaching federal labour laws.[6] The Winnipeg Free Press on receiving aid closed its Parliament Hill Bureau after 149 years.
Recommendation 2: Audit and report on recipients’ use of funding
[1] Testimony, Commons Standing Committee on Finance, May 15, 2019
[2] Blacklock’s Reporter, “$170M More For Newsrooms,” February 27, 2026
[3] Blacklock’s, “Media Gave Selves A Subsidy,” August 19, 2020
[4] Commons Sessional Paper 8555-451-567 tabled January 26, 2026
[5] Blacklock’s, “$5M Subsidy For Failed Chain,” April 2, 2024
[6] Blacklock’s, “Subsidized Press Fined $10,000,” September 25, 2025.
