The Local News Funding Act of 2025 is designed to bolster local journalism in the District by creating a grant system funded through "news coupons" distributed to registered voters. Each voter will receive five coupons annually, which they can allocate to registered news outlets overseen by a newly established Community Journalism Board. This Board will ensure that participating outlets meet specific eligibility criteria, including providing local content for free and maintaining transparency in ownership. The program is funded by 0.1% of the District's general fund budget, approximately $11.6 million, and includes provisions for development grants aimed at training and technical support for news outlets.

The bill also outlines the management of the news coupon system, detailing the process for issuance, allocation, and redemption. It establishes a Community Journalism Board composed of seven members from various sectors to oversee the program, investigate violations, and manage funds. Key amendments to existing laws include the addition of a new paragraph to the Confirmation Act regarding Board member nominations and updates on specific data formats. The act will take effect following the Mayor's approval or a Council override of a veto, along with a congressional review period.