California lawmakers have reached a controversial agreement with Google to provide $242.5 million over five years to support local journalism, effectively shelving a proposed bill that would have mandated tech companies to compensate news outlets for content usage. Critics, including media experts and some lawmakers, argue the deal favors Google and fails to provide a sustainable funding model for journalism, as the commitment represents only a fraction of Google's revenue. The arrangement will allocate approximately $55 million to a local newsroom fund and $12.5 million annually to an AI accelerator program, but many believe it is insufficient compared to the potential funding that the original bill could have secured. Victor Pickard, a media policy expert, stated that California has missed an opportunity for more substantial financial support for news publishers. Proponents within Google claim the deal aims to bolster both journalism and AI policy development. Despite the funding, the broader challenge of declining journalism continues as the industry grapples with decreasing print revenues and reliance on tech platforms for distribution.