Phil Murphy Just Ended Taxpayer Subsidies for Declining Newspaper Industry

In a decisive move that reflects the realities of a rapidly evolving media landscape, New Jersey has taken a historic step by ending the long-standing requirement for taxpayer-funded public notice subsidies to newspapers.

On July 1, Governor Phil Murphy signed a bill into law that eliminates the mandate for government entities to publish legal notices in print newspapers, opting instead for digital platforms hosted by municipalities and counties.

This reform marks the end of a decades-old revenue stream for an industry struggling to adapt to the 21st century, signaling a shift toward fiscal responsibility and transparency in an era where print media is increasingly obsolete.For years, New Jersey’s newspapers relied on public notice advertisements—legally required announcements of municipal meetings, planning board applications, sheriff’s sales, and other government actions—as a financial lifeline.

These notices, mandated by state law to appear in print, provided a steady income stream, with local governments spending an estimated $20 million annually, much of which was reimbursed by private entities. However, the decline of the newspaper industry, marked by plummeting readership, slumping advertising sales, and high-profile closures, has exposed the inefficiency of this subsidy.

The new law, sponsored by Senate President Nick Scutari, acknowledges that propping up a fading industry with taxpayer dollars is no longer sustainable, especially when digital alternatives are more accessible and cost-effective.The closure of The Star-Ledger’s print edition, announced in October 2024 and finalized on February 2, 2025, epitomizes the industry’s struggles.

Once New Jersey’s largest newspaper and a Pulitzer Prize winner, The Star-Ledger saw its circulation drop by 21% in 2024 alone, reflecting a broader trend of declining demand for print media. Its sister publication, The Jersey Journal, ceased operations entirely after 157 years, unable to sustain itself due to a meager circulation of 2,600 copies per day—nearly half sold at newsstands rather than through subscriptions.

Other papers, including The Times of Trenton, South Jersey Times, and the weekly Hunterdon County Democrat, also ended print runs, underscoring the grim outlook for newspapers clinging to a 1900s business model.

Nationwide, the newspaper industry is in freefall. Since 2005, the United States has lost over 3,200 newspapers, with 130 closures in the past year alone, at a rate of nearly 2.5 per week.

Weekday circulation has plummeted from 122 million to 73 million over the past 15 years, driven by closures, reduced distribution, and a seismic shift in reader preference toward digital platforms.

A 2023 Pew Research Center survey found that only 9% of U.S. adults regularly turn to print publications for news, compared to 56% who consume news digitally. Advertising revenue, once the backbone of newspapers, has followed suit, with digital ad sales now accounting for nearly half of industry revenue as print ads dwindle. The loss of classified advertising and the migration of advertisers to online platforms have further eroded the financial viability of print.

New Jersey’s newspaper industry mirrors these trends.

The Star-Ledger’s decision to shutter its Montville printing plant triggered a domino effect, forcing The Jersey Journal and other affiliates to confront unsustainable production costs.

The Jersey Journal’s editor, David Blomquist, admitted that an online-only model lacked the scale to support the paper’s “strong, politically independent journalism.”

This sentiment echoes across the industry, where high production costs, declining subscriptions, and a failure to adapt to digital realities have left many papers on life support. The closure of these outlets has also created “news deserts” in communities like Hudson County, where the absence of a daily newspaper leaves residents with fewer reliable sources of local information.

Critics of the new law, including the New Jersey Press Association, argue that ending public notice subsidies threatens the viability of local journalism and risks reducing government transparency.

They contend that newspapers, despite their decline, remain a centralized and trusted medium for public notices, unlike government websites, which can be difficult to navigate. However, this argument ignores the reality that print readership is vanishing—particularly among younger generations, with nearly one-third of young Americans getting news from platforms like TikTok. Moreover, the law ensures transparency by requiring notices to be posted on government websites and a centralized state portal, making them more accessible to a digitally connected public.

The end of public notice subsidies is not an attack on journalism but a recognition that taxpayer money should not prop up an industry that has failed to evolve. Newspapers that continue to operate as they did in the 1900s—relying on print circulation and traditional advertising—are doomed to fail. Successful media outlets have pivoted to digital subscriptions, diversified revenue streams, and innovative storytelling to engage modern audiences.

New Jersey’s law frees up resources that can be redirected to more pressing needs, such as property tax relief or education, while encouraging news organizations to innovate rather than rely on government handouts.

The closure of The Star-Ledger and other papers is a painful reminder of an industry at a crossroads. Yet, it also presents an opportunity for reinvention.

Digital platforms like NJ.com, which will continue to host The Star-Ledger’s online content, demonstrate that journalism can thrive in a new format if it adapts to changing consumer habits.

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