Remember how California's government negotiated a 2024 deal where Google contributed millions to California's local newsrooms to offset advertisers moving to the search engine? "A year after it was cemented — and billed as a model that could succeed where entire countries and continents had fallen short — the agreement is tangled in budget cuts, bureaucratic infighting and unresolved questions about who controls the money," reports Politico, "leaving journalists empty-handed and casting doubt on whether the lofty experiment will ever live up to its promise." The program, initially framed as a nearly $250 million commitment over five years, has secured just $20 million in new money for journalists in its first year, with no guarantee the funding will continue. It's changed hands twice since the University of California, Berkeley withdrew its support [with school officials "worried they wouldn't have enough of a say in how the money was distributed"]. Suggestions that other big tech players like ChatGPT-maker OpenAI could front more resources haven't materialized. A $62.5 million "AI accelerator" tied to the deal hasn't been set up yet. Not a single newsroom has seen a dollar of funding, and there's no definitive timeline spelling out when they will... [The article adds later that state officials "have yet to draft precise rules for how California will decide which newsrooms get cash..."] Conversations with at least 20 people involved in the deal's rollout reveal how California's budget shortfalls and intraparty spats among Democrats scrambled it... California's struggle to launch its program has dampened hopes of replicating its model in other states such as Oregon, Illinois and New York, where lawmakers have tried but failed to make Big Tech pay for news... When [California governor] Newsom unveiled his final state budget plan in May 2025 after a $12 billion deficit suddenly scrambled the state's finances, California's first-year commitment was reduced from $30 million to $10 million. Google followed suit within days and cut its first-year contribution from $15 million to $10 million... Whether the program even continues past 2026 is also unclear. Newsom's office declined to confirm whether the state will provide its $10 million commitment to the fund in the coming 2026-27 state budget. Newsom will also be termed out in 2027, and there's no requirement for his successor to honor the state's agreement with Google. Read more of this story at Slashdot.