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 that meet specific eligibility criteria, such as providing free local content and maintaining transparency in 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 support for news outlets. A newly established Community Journalism Board will oversee the program, ensuring compliance with guidelines and proper fund usage.

The bill also outlines the management of news coupons, including their issuance, allocation, and redemption, while emphasizing that voters must personally allocate their coupons without delegation. The Community Journalism Board, composed of seven members appointed by various authorities, will have the authority to investigate violations and enforce compliance. Additionally, the bill amends existing laws, including the Confirmation Act of 1978 and the Consumer Protection Procedures Act, to align with the new funding framework and ensure transparency in the allocation process. The act will take effect once its fiscal impact is incorporated into an approved budget and financial plan.