Exclusive: Government briefing warned media bailout had 'accountability risks'
A memo prepared for then–Heritage Minister Pascale St-Onge in 2024 raised significant concerns about the federal government's Local Journalism Initiative.

A federal briefing note obtained by Rebel News through Access to Information shows the government was warned that its multimillion-dollar journalism-funding program suffers from fundamental transparency and accountability problems.
Prepared for then–Heritage Minister Pascale St-Onge in December 2024, the memo states plainly: “Current program delivery has resulted in risks relating to consistency, transparency and accountability as noted in the program’s recent evaluation.”
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:
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Program delivery varies widely between the organizations tasked with distributing taxpayer money.
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Transparency gaps were directly identified by the department.
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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.
Sheila Gunn Reid
Chief Reporter
Sheila Gunn Reid is the Editor-in-Chief, Alberta Bureau Chief, member of the board of directors, and host of The Gunn Show at Rebel News. Sheila also serves as President of the Independent Press Gallery of Canada. A mother of three and longtime conservative activist, Sheila is the author of bestselling books, including her most recent release, Independence Blueprint: What Alberta Can Learn From Quebec.
https://mybook.to/sheila
COMMENTS
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Bruce Atchison commented 2025-11-26 21:21:16 -0500You’re doing exelent journalism, Sheila. And society doesn’t seem to care about corruption in government but viewers like I sure do.