The Local News Funding Act of 2025 aims 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 that meet specific eligibility criteria, including providing local content for free and maintaining transparency about ownership and advertising. The legislation allocates 0.1% of the District's general fund budget, approximately $11.6 million, to support this initiative, which also includes provisions for development grants aimed at training and technical assistance for news outlets. A newly established Community Journalism Board will oversee the program, ensuring compliance with the requirements and managing the issuance and redemption of the coupons.

Additionally, the bill introduces a framework for the management of news coupons, including processes for allocation and cancellation if a voter is no longer registered. The Community Journalism Board, composed of seven members appointed by local authorities, will have the authority to investigate violations and impose fines. The bill also amends existing laws, such as the Consumer Protection Procedures Act, to address violations related to false or misleading statements affecting coupon allocations. The act will take effect once its fiscal impact is included in an approved budget and financial plan, requiring certification by the Chief Financial Officer and approval by the Mayor, followed by a congressional review period.