NAB Joins Groups Seeking Federal Aid for Media
NAB signed on to the push for Congress to include emergency funding for local media and stations in the next stimulus bill addressing COVID-19. Some Democrats and other groups made similar requests in recent days (see 2004080069). Officials from some pro-funding groups are hopeful Congress will provide in the coming measure, perhaps billions of dollars. Lobbyists we spoke with were divided on whether it will be a top priority.
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NAB, America’s Newspapers, the News Media Alliance and National Newspaper Association want Congress to allocate $5 billion-$10 billion in “direct funding” to the Department of Health and Human Services, the Small Business Administration and other agencies for “local media advertising” on COVID-19. Those ads would include “information on medical resources, status of testing sites, data from the" Centers for Disease Control and Prevention, "mental health awareness, access to small business loans and other critical governmental information,” the groups said. “Advertising spends should be distributed across local media sectors and equitably allocated across large, medium and small communities.” They want lawmakers to also direct existing U.S. government ad campaigns, including those on the 2020 census, to local outlets.
NAB and the others want Congress to make broadcasters and other local outlets eligible for the SBA-administered Paycheck Protection Program established in the Coronavirus Aid, Relief, and Economic Security Act. “Many local media and news organizations exist within larger business groups,” the associations said. “Regardless of their ownership, they all provide critical information to local communities and have been similarly harmed by the COVID-19 crisis. Local news publisher and broadcaster eligibility” for the PPP program “must be determined at a local level (based on the local newspaper publisher or station) using a similar framework applied to restaurants and hotels.”
Senate Republicans’ Thursday bid to inject additional funding into PPP failed to advance. Majority Leader Mitch McConnell, Ky., had aimed to approve $250 billion in additional funding for the existing $350 billion program by unanimous consent. Democrats objected, claiming McConnell didn’t consult them before moving to advance his plan. Democrats unveiled a $500 billion counterproposal that included additional PPP funds and appropriations for hospitals and state governments. McConnell indicated negotiations will continue. Neither measure specifically addressed calls to make local media eligible for PPP. Democratic lawmakers want future COVID-19 legislation to fund broadband and other infrastructure projects. House Speaker Nancy Pelosi, D-Calif., indicated infrastructure funding is unlikely to be a priority in a fourth measure (see 2004030055).
NMA believes there’s a good chance lawmakers aid to local news in a coming bill because there’s now a “broader understanding” that the publishers are becoming increasingly important to their communities amid COVID-19, as they face “huge” financial challenges because of the crisis, CEO David Chavern told us. He said recent backing from Sen. Richard Blumenthal of Connecticut and other Democrats is “one indication” of broader bipartisan support for media-specific funding. “We’ll have to work out” how to ensure “equitable distribution,” because “our primary focus would be to make sure that funding is spread to all parts” of the media ecosystem, Chavern said.
Former FCC Commissioner Mike Copps, now with Common Cause, said the news stimulus request he and others sought Wednesday is more targeted toward keeping journalism going and includes noncommercial stations. Free Press and others sought at least $5 billion, including for CPB. That request includes safeguards for the dollars to go toward journalism operations, “where it makes a difference in the newsroom,” Copps said.
“Viewers, listeners and online users are turning to us for local news and information in unprecedented numbers,” emailed a Nexstar spokesperson. “There is intense pressure on advertising. We support and would welcome financial assistance.”
ACA Connects' spokesperson blasted NAB and the group’s request. ”In other words, TV stations having trouble competing,” Hearn tweeted. “So bail out the losers?” Hearn tweeted that any bailout of broadcasters should come with rules barring stock buybacks and TV blackouts. NAB didn't comment on Hearn's tweets.
“We fully support [FCC Chairman Ajit Pai’s] efforts to provide regulatory relief where possible and to let Congress decide the funding issues,” said an aide to Commissioner Mike O’Rielly. Other FCC commissioners didn’t comment.
NAB and other associations “have a compelling case” to make in favor of federal aid due to the industry’s importance as a primary source of information about the pandemic, said one media-focused lobbyist. Much would depend on the scope of the next COVID-19 measure, since many industries are seeking federal funds. Another media lobbyist believes the chances of federal funding of the type NAB and others seek is “a long shot at best.”