The Ongoing Newspaper Shutdowns in America and the Future of the News Industry: Algorithms, AI, and News Deserts

1. The Large Void Created by "Quiet Closures"

Local newspapers in the United States are now quietly but surely disappearing. According to the latest reports and research, at least 136 newspapers have ceased publication in the past year, further expanding news deserts. The impact is particularly severe in rural areas and small communities, where local government oversight, election information, and detailed coverage of schools, hospitals, and the local economy are being lost. Recent examples include the closure of long-standing independent newspapers like the Wasatch Wave in Utah and the Aurelia Star in Iowa. These closures are not the result of mergers by large chains but rather the extinguishing of the "last light" of family-run or individually-owned operations. AP News

Over the 20 years since 2005, the number of newspapers has decreased from about 7,300 to around 4,500, and the total weekday circulation has dropped from about 50-60 million to just over 15 million. Employment has also plummeted, with the number of workers in the newspaper industry falling from about 360,000 to the 90,000s during the same period. This is not merely a contraction of the media but signifies the thinning of the region's "information infrastructure" itself. AP News

2. The Risk of "Invisible Localities" Facing 50 Million People

The annual report "State of Local News 2025" from Northwestern University's Medill School points out that about 50 million people in the U.S. live in "news deserts" or on their fringes, with limited access to local news. On a county basis, there are over 200 areas without a single local newspaper, and even in remaining areas, publications are often less than once a week or essentially "ghost newspapers" with scant content. In urban areas, new digital media are emerging, but they have not yet filled the void. Local News Initiative

These voids have repercussions in politics and daily life. Studies have shown that regions with fewer local reporters tend to have more corruption and inefficiency, and there are reports of negative cycles such as rising public project costs and declining voter turnout. The information void also creates fertile ground for unverified information circulating on social media and AI-generated content. Axios

3. The Cause is Not Just the "Collapse of Advertising"

While the primary cause is undoubtedly the digital shift in advertising, recent years have seen the influence of the following complex factors.

• Backlash from Platform Dependence: Changes in social media algorithms have significantly reduced newspaper site traffic over the past four years. Competition for traffic from search engines has also intensified. AP News

• Distribution Issues in the AI Era: The structure where user engagement is taken away by AI-generated summaries and responses, leading to a thinning of direct traffic to original reporting, has become apparent. AP News

• Rigid Cost Structures: Fixed costs for printing and delivery, debt management, and the side effects of consolidation have pushed local reporting to the background. Large chains have announced cost reductions on the scale of hundreds of millions of dollars, increasing pressure on editorial teams.  poynter.org
  
  

4. Survival on the Ground: Three Directions

Nevertheless, efforts to "protect the local" are underway in various places. The seeds of success mainly lie in three areas.

(1) Redesigning for Digital-First
Transitioning from weekly to "constant updates," this model centers on newsletters, apps, and membership communities. It expands the influence radius per reporter and builds up vertical features that respond to niche interests. The payment model is tiered, combined with local business advertising and job listings.

(2) Shared Infrastructure and Networking
By sharing common platforms for CMS, analytics, ad sales, legal, and IT across regions, reporters can focus on coverage. Content partnerships with universities and public broadcasters are also increasing. "Press Forward" branches are being established by state and city, strengthening the flow of funds and know-how. pressforward.news

(3) Institutionalizing Public Support
Policy menus are being developed, such as tax credits for reporter salaries to encourage employment retention, subscription tax credits for readers, and regional advertising tax credits for small businesses. At the federal level, the "Local Journalism Sustainability Act" has been reintroduced, and at the state level, sustainability tax systems are beginning to move in places like Illinois. Congress.gov

5. The Current State of Philanthropy: Over $400 Million

The philanthropic coalition "Press Forward" announced that it has mobilized over $400 million in investments in the two years since its launch. In July, it provided $22.7 million in grants to 22 infrastructure projects, and funding allocations are advancing in local chapters (such as Chicago) to enhance reporting capabilities on immigration and local issues. Last year, the AP reported on the spread of grassroots grants of $100 million to 205 small local media outlets, and existing foundations like the Knight Foundation are accelerating their regional focus. pressforward.news

On the other hand, collaboration with state finances and large corporations is also experiencing significant fluctuations. The agreement with Google in California has been forced to redesign due to financial deterioration, resulting in a streamlined scale from the original plan. The difficulty of tripartite investment by government, private sector, and philanthropy is becoming apparent. Politico

6. Reactions on Social Media: From Paywalls to Public Goods

Discussions on social media are divided into three main axes.

• The Debate Over "Paywalls": While there is criticism that paywalls hinder dissemination, many recognize that they are essential for securing revenue. On Threads, posts are prominent that explore the balance between national and local newspapers and paywalls. Threads

• The "Public Goods" Approach: There is an argument for supporting local reporting as infrastructure by collaborating with universities, public broadcasters, and state agencies. Accounts from research institutions point out that people in news deserts often mistakenly believe they are well-informed, and propose designs that simultaneously enhance information literacy and community participation. Threads

• "Caution in the AI Era": There is a warning that as the number of reporters decreases, AI-generated misinformation and deepfakes will encroach on communities. The need for personnel cost support to maintain on-the-ground verification capabilities is repeatedly emphasized. Threads

Additionally, in university newspapers and journalism education circles, there is a strong call to promote the regional return of reporting education based on the latest reports. Proposals are spreading to institutionalize the regional deployment of student reporters and collaborative projects between universities and local stations. The Daily Northwestern

7. Reasons for Hope Despite the Challenges

Despite the harsh numbers, the increase in new digital-local entrants, particularly in urban areas, and the fact that the "mechanisms" of policy and philanthropy are beginning to take shape are definite progress. The key is whether a continuous flow of funds can be created to maintain and increase employment (reporter positions) rather than one-time grants. Specifically——

• A two-pronged approach of employment tax credits and reader-side credits to simultaneously support supply (reporters) and demand (subscriptions). Rebuild Local News

• A multi-stakeholder model involving universities, public broadcasters, local governments, foundations, and businesses to divide roles from reporter training to distribution, verification, and translation. pressforward.news

• Redesigning beats (areas of coverage) to vertical axes closely related to daily life, such as "education, healthcare, environment, immigration, and local finance," and focusing more on explanation and verification than breaking news.

• Standardizing clauses in agreements with platforms to ensure both stable funding and editorial independence. Politico

8. Implications for Japanese Businesses and Local Governments

The context of declining birthrates, aging populations, and regional exhaustion is similar in Japan. The delivery network and local knowledge of regional newspapers have irreplaceable public value in disasters, elections, and government oversight. What can be imported from the U.S. developments are likely the three points of (a) tax systems for employment and subscriptions, (b) collaboration between universities, public broadcasters, and foundations, and (c) vertical editing focused on regional issues. When local governments get involved, governance for independence that excludes editorial intervention becomes crucial.

Even if news moves away from "paper," it remains a fundamental infrastructure supporting regional decision-making. The technology and funding to turn deserts into green spaces are beginning to emerge. The remaining challenge is to institutionalize it and return it to the hands of the community.