Citing Waterbury, Rep. Welch tried to expand aid for local news in new federal relief package
May 16, 2020 | By Lisa ScagliottiAlthough it didn’t make it into the bill the U.S. House passed on Friday, Vermont’s Congressman Peter Welch made a pitch for federal COVID-19-related aid for local news media last week and in doing so, he pointed to Waterbury as an example.
The House Friday voted 208-199 on the “Heroes Act,” a $3 trillion aid package -- the fourth and largest -- in response to the national economic fallout from the coronavirus pandemic. Widespread business closures and cutbacks have left record numbers of Americans out of work, closed schools from coast to coast, while state and local governments brace for revenue shortfalls.
As this latest bill came together in the House there was some support to untangle obstacles in previous legislation that prevented some local news organizations from taking advantage of some benefits already established for businesses.
The Wall Street Journal reported May 11 on a proposal to allow local newspapers and broadcast outlets to apply for Small Business Administration loans under the Paycheck Protection Program launched in recent weeks. Smaller news operations that are part of large corporations have been unable to participate in the program.
In a letter to House Speaker Nancy Pelosi, D-Calif., and Minority Leader Kevin McCarthy, R-Calif., Rep. Welsh, D-Vt., advocated going further: “Creating a specific fund or program to encourage and support the sustainability of local, community-based news is essential. Some Vermont communities are on the brink of finding themselves in a ‘news desert,’ with few or any local news sources,” Welch wrote.
Welch underscored the importance of “local journalism and media” that provide essential, accurate information related to the COVID-19 pandemic and juxtaposed how curtailing business activity has resulted in a dramatic, abrupt disruption of advertising, a key source of income for local newspapers, broadcast and online outlets.
“Our local news outlets have been struggling to keep the lights on in their newsrooms before and during this crisis. This pandemic has exacerbated the problems that existed,” he wrote.
“We have seen the impact of the slowdown in our news coverage when the Waterbury Record published its last issue in March and more than ten other Vermont outlets announced that they were suspending publication, or furloughing or laying off staff,” Welch continued.
The weekly Waterbury Record newspaper published by the Vermont Community Newspaper Group in Stowe ended publication March 26 citing the economic blow from business closures in March due to the virus outbreak.
Welch argued to House leaders that it’s important for Americans to get “information from trusted sources in our communities, such as our local newspapers, radio and television outlets,” for example, details about assistance available such as food distribution and sources for getting protective face masks.
But Welch’s efforts fell short.
In an email on Monday, Lincoln Peek, a spokesman for Rep. Welch, wrote that the draft bill did not go as far to assist local news outlets as the congressman had envisioned: “Unfortunately, this package did not include the support that Rep. Welch detailed in his letter, and hoped to see. It does allow local outlets owned by larger chains to take advantage of the PPP program (local outlets with less than 500 employees were already eligible) and includes pension provisions important for some local newspapers. Rep. Welch will continue to work to secure more resources for Vermont’s local outlets.”
The fate of the House bill is uncertain as it faces strong opposition from Senate Republicans.
Welch’s office on Saturday released more detail on the House bill, noting that it aims to help first responders, small businesses, and state and local governments as they respond to the COVID-19 pandemic. The bill also provides $75 billion for COVID-19 testing and contact tracing nationwide.
The Heroes Act (H.R. 6800) includes:
$875 billion in state and local assistance. The state of Vermont and localities would receive more than $3 billion over two years.
Increasing the maximum benefit for Vermonters receiving food assistance through 3SquaresVT by 15%.
Flexibility for small businesses with PPP loans so that those loans work for them.
$100 billion in grants for states to support educational institutions.
$25 billion for the U.S. Postal Service.
$200 billion for hazard pay for essential workers.
$16.5 billion in direct payments for farmers and $500 million to create a dairy donation program to prevent milk dumping.
A detailed summary of the bill from the House Appropriations Committee can be found here.