SALT LAKE CITY — More than 200 members of Congress, including three from Utah, are urging President Donald Trump to direct federal spending on advertising be prioritized for local media outlets.
The coronavirus pandemic has caused a near halt in business and as a result companies are not buying ads on television and radio and in newspapers.
“Local news and information on radio, television and newsprint is more in demand than ever, yet local media outlets are experiencing catastrophic losses in the advertising revenue that allows them to continue investing in providing that news to the public,” according to the bipartisan letter to the president. “Without advertising revenue, local media outlets cannot survive.”
Utah GOP Reps. Rob Bishop and John Curtis and Democrat Ben McAdams signed the April 20 letter.
At least one Utah media outlet, the Salt Lake Tribune, has received federal funds from the Paycheck Protection Program.
Under PPP provisions, the $854,800 loan will cover the cost of 2½ months of employee payroll. If employment levels stay the same through June, the Tribune can apply to have the loan converted to a grant that would not need to be repaid. The Tribune fully intends to do this, according to the newspaper.
In an April 18 letter, four senators, none from Utah, asked Senate Republican and Democratic leaders to ensure that any future stimulus package makes more local newspapers and radio and television broadcasters eligible for assistance under the Paycheck Protection Program.
Up to several thousand newspapers and hundreds of local radio and television stations nationwide were cut out of existing programs by the Small Business Administration’s affiliation rule, which restricts assistance to companies owned or controlled by larger entities, the letter says. Even though those news outlets may be owned by larger groups, they operate independently.
According to the letter to Trump, advertising plays an incredible role in local economies, and its importance to the sustainability of local broadcast stations and newspapers cannot be overstated.
The public turns to free and local media for lifesaving information and breaking news in challenging times because local radio, television and newspapers are still the most trusted sources in times of emergency and disaster, the letter says.
The letter asks federal agencies to promote economic stimulus programs included in the $2.2 trillion Coronavirus Aid, Relief and Economic Security Act and other recent legislation.
It urges the president to direct Cabinet secretaries to review any resources intended for advertising campaigns and expedite with local media outlets. It also asks him to direct federal agency advertising dollars for existing and new programs where community outreach is needed for spending with local media, including those serving minority and rural communities.