The Local News Funding Act of 2025 aims to bolster local journalism in the District of Columbia by creating a grant system funded through "news coupons." Each registered voter will receive five news coupons annually, which they can allocate to any news outlet registered with a newly established Community Journalism Board. This board will oversee the program, ensuring that participating news outlets adhere to specific criteria, such as providing free local news and clearly distinguishing news from advertising. The initiative is funded by allocating 0.1% of the District's general fund budget, approximately $11.6 million, which will also cover grants for technical support and training for news outlets.

The legislation also introduces several amendments to existing laws, including a new paragraph in the Confirmation Act of 1978 that specifies the Mayor will nominate members of the Community Journalism Board. Additionally, the Consumer Protection Procedures Act is amended to address violations related to the Local News Funding Act, particularly concerning false or misleading statements that could affect the allocation of news coupons. The act will take effect once its fiscal impact is included in an approved budget and financial plan, and it will be subject to a 30-day congressional review period following the Mayor's approval. Overall, the Local News Funding Act of 2025 seeks to empower citizens and sustain local news sources amid declining readership and financial challenges.