On March 18, 2025, the Washington Senate introduced Senate Bill 5400, a legislative proposal aimed at bolstering local journalism through a financial mechanism targeting large social media platforms and search engines. The bill seeks to impose a surcharge on these entities, specifically those with gross incomes exceeding $5 million in the preceding calendar year, to support local news initiatives.

Key provisions of the bill define "covered platforms" as social media platforms and search engines, while explicitly excluding organizations classified as 501(c)(3) non-profits under federal tax law. The bill outlines that revenues generated from this surcharge will be allocated to a newly established local journalism investment account, intended to provide financial support to local news organizations struggling in the digital age.

The introduction of Senate Bill 5400 has sparked notable discussions among lawmakers and stakeholders. Proponents argue that the bill addresses the critical decline in local journalism, which has been exacerbated by the dominance of large tech companies in the advertising market. They contend that this financial support is essential for maintaining a healthy democracy and informed citizenry.

Opponents, however, raise concerns about the potential implications of taxing digital platforms, suggesting it could lead to increased costs for consumers or stifle innovation within the tech industry. Some critics also question the effectiveness of the proposed funding mechanism in genuinely revitalizing local news outlets.

The bill's significance lies in its attempt to tackle the broader issue of media sustainability in an era where traditional journalism faces unprecedented challenges. Experts suggest that if passed, Senate Bill 5400 could set a precedent for similar initiatives in other states, potentially reshaping the relationship between tech companies and local media.

As the legislative process unfolds, the bill will likely undergo further scrutiny and debate, with its future implications for both the journalism landscape and the tech industry remaining a focal point of discussion among lawmakers and the public alike. The bill is set to take effect on January 1, 2026, should it pass through the necessary legislative hurdles.