The document reviews the Local Journalism Initiative (LJI), the federal subsidy program that pays select news outlets through six industry groups. According to the memo:

• Program delivery varies widely between the organizations tasked with distributing taxpayer money.

• Transparency gaps were directly identified by the department.

• The overall structure carries significant accountability risks.

The internal evaluation covering 2019–2022 urged Heritage Canada to reconsider how the program is administered, citing “inconsistencies between how some deliver the program” and highlighting lost efficiency in how applications are processed.

Despite these warnings, Ottawa expanded responsibilities for the same organizations by adding a new funding stream under the “Changing Narratives Fund,” which officials acknowledge will “add delivery pressures.”

Government-run journalism funding doesn’t solve the industry’s problems — it creates new ones, including the very government accountability failures the media is meant to expose.

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