Federal Government Restructures Disinformation Fund, Discontinues Diverse Journalist Hiring Program

The federal government announced it will not renew funding next year for an initiative designed to promote diversity in journalism and support newcomers to the screen industry, as part of Prime Minister Mark Carney’s broader $60 billion spending review.

The cuts, outlined in the government’s departmental plans for 2026-27 tabled in Parliament last month, will affect several programs under Canadian Heritage, which oversees support for the country’s cultural sector. The department aims to save nearly $80 million by 2028-29 through targeted program reductions.

Specifically, the government will sunset the “Changing Narratives Fund,” a three-year $10 million program created to incentivize newsrooms to hire more diverse journalists and provide training and job opportunities for Indigenous and Black film producers. The program is set to expire in March 2024.

Alex Freedman, executive director of the Community Radio Fund of Canada, called the decision “unfortunate,” noting that stations are currently in the process of hiring journalists under that funding stream. “It’s always unfortunate when there are fewer journalists out there on the street,” Freedman said, adding that they would work to ensure space for emerging journalists from minority communities in future initiatives.

The Local Journalism Initiative, which provides job subsidies enabling newsrooms to hire journalists focused on local coverage in underserved areas, will continue until 2027 as previously extended. Since its introduction in 2019 under former Prime Minister Justin Trudeau, the initiative has received more than $100 million in government funding to address gaps created by newsroom closures and layoffs across Canada.

Paul Deegan, president and CEO of News Media Canada, one of the organizations administering the program, expressed concern about potential future cuts. The initiative currently funds approximately 200 journalism positions nationwide. He noted that the industry has stabilized somewhat in recent years, partly due to this support and the Canadian Journalism Labour Tax Credit.

This tax credit, which allows news organizations to claim a portion of employee salaries, was temporarily increased to 35 percent from 25 percent in 2023 but is scheduled to return to the original rate beginning next year. “On Jan. 1, as it reverts down to 25 percent, on an $85,000 salary, that’s a cut of $8,500 per journalist,” Deegan explained. “That’s a really big issue.”

Additional changes to Canadian Heritage funding include restructuring the Canadian Cultural Spaces Fund to focus solely on specialized equipment acquisition rather than renovation and construction projects for arts spaces. The Canadian Periodical Fund, which provides financial support to publishers, will also undergo changes in the next two years.

The department also plans to restructure a program that funds university and organizational projects aimed at helping Canadians better understand online information. This initiative has supported efforts to identify AI-generated content, counter COVID-19 misinformation, and assist diaspora communities targeted by foreign interference and disinformation. Funding earmarked for 2026-27 will be withheld except for already-approved projects, resulting in approximately $8 million in savings by 2028-29.

Despite these cuts, the department maintains that “policy capacity for online harms will be maintained during this period,” and that the government “will continue to pursue efforts to strengthen coordination across governments and academia” regarding information integrity and online safety.

The spending review represents Carney’s effort to redirect Liberal spending toward defense and economic growth initiatives. News organizations across Canada, including Postmedia (owner of National Post), currently benefit from various government support programs, including the Local Journalism Initiative, the Canadian Journalism Labour Tax Credit, and the Canada Periodical Fund.

CBC/Radio-Canada, the country’s public broadcaster which receives approximately $1 billion in annual funding, does not qualify for money under the Local Journalism Initiative program.