California has reached a groundbreaking agreement to allocate nearly $250 million over five years to support local newsrooms and AI research, marking the first state-level initiative of its kind in the U.S. The deal, brokered by Assemblymember Buffy Wicks and supported by Governor Gavin Newsom, will see $172.5 million from tech companies like Google and $70 million from state funds, with $100 million available in the first year. This funding aims to bolster journalism in California, addressing the significant decline in local news outlets and their staff. The initiative will include a News Transformation Fund administered by UC Berkeley, targeting news deserts and underrepresented communities. While the agreement avoids earlier contentious legislation that faced opposition from tech giants, it underscores the importance of local journalism in a democratic society. Critics argue, however, that this funding may not be sufficient to fully resolve the crisis in local news.