The Decline of Local Newspapers: Insights from 60 Minutes

Nearly one-third of daily newspapers in America are owned by hedge funds today. The erosion of local journalism signals a dramatic shift in community engagement and democratic accountability that demands urgent attention.

The Newspaper Industry's Struggles

For more than two decades, the U.S. newspaper industry has grappled with a steep decline in print advertising revenues, largely siphoned off by digital platforms like Facebook and Google. This shift has prompted thousands of local papers to downsize or shutter entirely, forcing remaining outlets to scramble for reader subscriptions and digital ad dollars. While circulation numbers have fallen, the real crisis lies in ownership changes: financial firms and hedge funds now control nearly a third of daily newspapers nationwide. These investors prioritize cost-cutting measures—selling historic buildings, reducing printing runs, and slashing newsroom budgets—over community-first reporting. As consolidation accelerates, smaller publications lose their unique editorial voices, and critical local coverage disappears from town councils, school boards, and community events.

The Heartbeat of Community Journalism

In Pottstown, Pennsylvania, the annual Fourth of July parade illustrates what local reporting makes possible. Amid the marching bands and baton twirlers, Evan Brandt stands alone on the sidelines, snapping photos and jotting down notes for The Mercury. For 24 years, Brandt has chronicled every graduation ceremony, every high school football game, and every obituary in this community of 23,000. His stories preserve shared memories and connect residents by telling the human tales behind civic milestones. When a local newspaper thrives, neighbors learn about each other’s lives; when it fades, that social glue frays. Brandt’s one-man operation highlights both the dedication of veteran journalists and the daunting scope of modern beats, since he now covers 20 towns across nine school districts with no full-time colleagues to share the load.

A Troubled Past and Uncertain Future

The Mercury was once a bustling newsroom, home to dozens of reporters and photographers, and it earned Pulitzer Prizes in 1979 and 1990 for investigative excellence. Today, under the ownership of Alden Global Capital, that once-premier staff has been cut by roughly 70%. The hedge fund bought the paper in 2011, sold off its landmark building, and redirected operating funds toward debt servicing and shareholder returns. Brandt now mans an attic-turned-newsroom, where he compiles a daily paper with minimal resources. This local downfall mirrors a national pattern: since 2008, U.S. newspapers have shed 57% of their editorial jobs, eroding the capacity for in-depth reporting on local government, courts, and community welfare. Without a robust press, the checks and balances that keep civic leaders accountable weaken, fueling a cycle of public disengagement and unchecked power.

The Secretive Hedge Fund Behind the Cuts

Seeking accountability, Brandt once traveled to Heath Freeman’s summer home to pose a simple question:

“What value do you place on local news?” — Evan Brandt, The Mercury

Silence was the response. Alden Global Capital has since grown into the second-largest newspaper owner in America, quietly amassing over 200 titles. Despite warnings from 21 U.S. senators in 2019, who decried the firm’s aggressive cost-cutting as harmful to democratic discourse, Alden doubled down on its “minimum viable newsroom” strategy. The fund’s leaders boast profit margins as high as 30% at some papers—far above the 10% industry average—by systematically selling real estate, eliminating veteran editors, and replacing print presses with lean digital operations. This model undermines local journalistic standards and sidelines reporters who once served as watchdogs for community integrity.

Resistance to a Crisis

At the Chicago Tribune, investigative veterans Gary Marx and David Jackson spent decades exposing local corruption and inequities. When Alden set its sights on Tribune Publishing, they refused to bow to cuts without a fight. Using their investigative prowess, they combed Alden’s filings and public records to reveal how the hedge fund prioritized shareholder payouts over editorial investment. Their op-ed in the New York Times pleaded for foundations and philanthropists to rescue the Tribune, warning that without a strong newsroom, the city’s democratic fabric would fray. “This is an attack on our democracy,” Marx declared, underscoring the civic role of local journalism.

The Importance of Local Reporting

A 2018 University of North Carolina study found Alden-owned newspapers cut staff at twice the rate of comparable publications. Steven Waldman, who led a 2011 FCC study on local news, warns that sharp declines in coverage invite corruption. In Bell, California, city officials awarded themselves multimillion-dollar pay raises after the local paper closed, with no reporters left to question the decision. Across the country, news deserts are expanding, leaving communities reliant on polarized cable networks and social media algorithms for information. Without neutral local reporting, residents lose insight into school budgets, zoning debates, and public health updates.

The Race to Revive Local News

To counteract news deserts, Steven Waldman co-founded Report for America in 2017, sending journalists to underserved newsrooms nationwide. The program has placed hundreds of reporters in communities from rural West Virginia poverty beats to domestic extremism coverage in Appalachia. These local journalists often hold deeply rooted trust with readers, gaining access to sources that national outlets miss. On January 6, Capitol insurrection coverage by regional reporters revealed nuanced local connections and radicalization pathways. From town hall meetings to grassroots organizing, their ongoing presence contrasts with the parachute-in approach of national cable crews. The result is richer coverage that sustains civic engagement.

A Collective Call to Action

Identifying a void in Maryland’s media landscape, hotel magnate Steuart Bayum [verify] launched the Baltimore Banner, a nonprofit digital newsroom devoted entirely to local news. Backed by a $200 million pledge, Bayum aims to hire more than 100 reporters covering city hall, education beats, and neighborhood initiatives. The Banner plans to sustain operations through a mix of subscription revenue, philanthropy, and local sponsorships. Similar nonprofit and cooperative models are sprouting across the country, signaling a growing consensus that community-backed journalism can help revitalize newsrooms. If these ventures succeed, they could reverse the tide of media deserts.

The Takeaway:

• Subscribe to your local newspaper, donate to nonprofit news organizations like the Baltimore Banner, and share community stories to strengthen local news and safeguard democracy.

What will you do today to support journalism in your town?