OPINION: Ottawa’s $12 million fix for a problem it created

Ottawa says it’s “strengthening local and diverse journalism.” In practice, it’s using temporary funding to address problems created by its own policies.

Earlier this week, Canadian Heritage announced $12 million to extend the Special Measures for Journalism program for another year. The government says the funding will help “local and diverse news.” The announcement comes while the effects of the Online News Act continue to shape the industry. Meta’s decision to block Canadian news in response to that law sharply reduced digital publishers’ reach and audience engagement, leaving many outlets struggling.

When Meta blocked Canadian news content in response to that law, local publishers saw steep declines in visibility — an 85 percent engagement drop on Meta, according to the Media Ecosystem Observatory — with corresponding revenue impacts. The government has done little to reverse that damage. Instead, it now positions itself as the main source of relief. The Special Measures program provides short-term support for print magazines and non-daily community newspapers that rely on free or low-cost circulation. Digital publications, which are heavily affected by Meta’s blackout, are excluded.

Chart retrieved from Online Business Canada.

While the government ends innovation funding, it is adding new programs that steer journalism through political priorities. The Changing Narratives Fund, a $10 million initiative launched in 2024, is being integrated into the Periodical Fund to promote “diverse stories” and training. It may support valuable projects, but it also ties newsroom funding to government-defined objectives rather than market or audience needs.

This combination of programs — temporary relief, targeted grants, and the loss of innovation funding — gives Ottawa increasing control over who qualifies for support and on what terms. Publishers that once competed in the market now compete for compliance with government funding rules.

The government’s own communications highlight this contradiction. Officials speak of protecting “cultural sovereignty” and countering “disinformation,” while those same policies have coincided with restricted distribution (Meta’s blackout) and limited digital publishers’ eligibility under the Special Measures program. Meta’s news blackout in response to the Online News Act continues, yet the government’s answer is more subsidies rather than fixing distribution.

Mixed signals

This latest round of domestic funding also highlights a familiar contradiction. Less than a year ago, the same government pledged $1 million to UNESCO’s Global Media Defence Fund to promote “press freedom” abroad. While it funds international campaigns for media independence, it continues to design policies that reduce it at home. Ottawa lectures the world about protecting journalists from censorship, even as its own law led to Canadian news being pulled from major platforms by Meta and replaced lost income with government-controlled grants.

The irony is costly. Canada spends millions promoting “media freedom” abroad while using domestic funding to manage the press at home. The new $12-million extension for journalism, paired with programs like the Changing Narratives Fund, is framed as support but functions as control — selective relief for an industry weakened by Ottawa’s own policies. If the government truly believed in a free press, it would fix the conditions that allow it to survive on its own.