📻 The Effects Of Cutting Federal Funding For Public Media

In today’s newsletter I discuss the effects of cutting federal funding for public media, meme stocks are back, YouTube’s ad revenue soars, AI is aiming to take over lawyer’s jobs and no one is shedding a tear, 'Welcome to Necaxa,' is set to premiere on August 7, and NY Giants Eli Manning invests in XTech who makes protective gear for athletes.

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📻 The Effects Of Cutting Federal Funding For Public Media

Today I’m talking about the effects of cutting federal funding for public media like NPR and PBS, and why you should care. Let’s get into it.

Without naming any names, or pointing any fingers at any specific political party, I want to break this news down to focus on the effects it will have on the media Americans consume.

Congress recently delivered a significant blow to public media, approving a rescission package that slashes approximately $1.1 billion dollars from the Corporation for Public Broadcasting (CPB) over the next two fiscal years. This move, part of a larger $9 billion dollars in spending cuts that also impacts foreign aid, marks a substantial shift in federal support for institutions like NPR and PBS. While some lawmakers argue these cuts are a necessary step towards reducing the national debt, the practical implications for communities across the nation are far-reaching and potentially devastating.

So let me see if I’ve got this straight. You’re telling me that somehow by eliminating $1.1 billion dollars from the Corporation for Public Broadcasting (CPB) over the next two fiscal years, that’s supposed to help reduce the U.S. federal budget, which is $5.35 trillion dollars for fiscal year 2025?!?!

Ok then.

So in that case, let me drop some math on you.

The Corporation for Public Broadcasting (CPB) receives such a tiny percentage of the total U.S. federal budget, that the math works out to be approximately one one-hundredth of a percent (0.01%) of the U.S. federal budget, which like I just said is $5.35 trillion dollars this year.

But let’s back up for a minute. What was that word I just used: rescission?

I’m glad you asked.

The word rescission means to revoke, cancel, or repeal of a law, order, or agreement.

In this case congress voted, rather lopsided I will note, to not only cancel any future funding for the Corporation for Public Broadcasting, which in turn provides funding to NPR and PBS, but they also voted to claw back money that had already been approved and allocated. This is even more diabolical, because this money had already been approved in a bipartisan vote by congress, and now the money was being taken back 

(snap) Just like that. 

But how did it come to this?

Well, there is a provision in the Public Broadcasting Act of 1967 that allows the Corporation for Public Broadcasting to receive its funding two years in advance of the fiscal year for which it is intended. This structure was designed with the intention of insulating public media from political pressures that might arise during the annual budget process.

Turns out they probably should have included a provision that says “no take backs”.

Back in 1967 when the Corporation for Public Broadcasting (CPB) was established by Congress as a private, non-profit organization to support public broadcasting in the United States, public media had wide bipartisan support, and it was nearly inconceivable that a political party would one day come to power and attempt to kill it off. I mean we’re talking about public media, which provides critical information to rural communities, and programming to help children learn to read.

Who would ever want to get rid of that? (sound of crickets)

So let’s break down how the Corporation for Public Broadcasting (CPB) works. The Corporation for Public Broadcasting (CPB) receives federal funding from Congress and distributes the vast majority of these funds as grants to local public radio and television stations across the country. The Corporation for Public Broadcasting (CPB) does not produce any programming itself, nor does it own or operate any radio or tv stations. Those public radio and television stations who receive the grants then use the funding to purchase programming from organizations like NPR and PBS, which includes such popular hits as Sesame Street, and my favorite NPR, which is where much of the current administration’s anger is directed.

Undeservingly I might add.

The Corporation for Public Broadcasting (CPB) acts as a crucial conduit, distributing over 70% of its federal appropriation directly to more than 1,500 locally operated public television and radio stations. Most of this funding goes to rural stations in red states that serve as lifelines for isolated populations. If you’re thinking there’s probably a lot of farmers in those rural areas who depend on public radio, then you’re absolutely correct.

Katherine Maher, NPR's president and CEO, has warned that as many as 80 NPR stations could face closure. The financial figures underscore this grim reality. Maine Public is bracing for a $2.5 million dollars hit, representing about 12% of its budget, while Mississippi Public Broadcasting expects to lose approximately $2 million dollars, or 15% of its budget, leading to the elimination of critical programming like a 24-hour children's streaming channel. For stations like Erie's WQLN, federal funding constitutes a substantial 40% of its $1.2 million dollars annual budget. Buffalo Toronto Public Media also anticipates a 15% budget reduction.

Beyond the raw numbers, the impact extends to the very fabric of local communities. Public media outlets often provide the only source of local news, educational content, and, critically, emergency alerts in areas where broadband and cable access are limited or nonexistent. Senator Lisa Murkowski, a Republican from Alaska, highlighted this vital role, noting that Alaskan stations provide essential tsunami, landslide, and volcano alerts. An earthquake striking off the Alaskan Peninsula during the Senate debate served as a stark, real-time reminder of the life-saving information these stations deliver.

Native American radio stations, which are often the sole source of news and cultural programming in tribal communities, are particularly vulnerable. Loris Taylor, CEO of Native Public Media, has indicated that around three dozen of the 59 tribal radio stations heavily reliant on CPB funding could be the first to go dark.

These cuts threaten to create what people in the media industry refer to as "news deserts," leaving vulnerable populations without access to reliable local information, educational resources for children, and crucial public safety announcements. 

I’m all for saving money on unnecessary government spending, like the famously quoted $15,000 dollars NASA spends on a hammer, or money the government spends to study the effects wolves have on the population of deer in Yellowstone Park (I’ll give you a hint: they eat them). But cutting one one-hundredth of a percent (0.01%) of the U.S. federal budget by eliminating funding for The Corporation for Public Broadcasting (CPB) seems like a drop in a bucket, and doesn’t really move the needle very much, especially when you consider the harm it will do to the rural communities made up of farmers who rely on the news they get from public media.

💰 Business

Meme stocks are back baby! There’s been a resurgence of meme stock mania, which this time around includes companies like Kohl's, Krispy Kreme, and GoPro. Why focus on these companies right now? Two words: social media and short interest. The same things that once made GameStop the darling of the Wall Street Bets crowd back during Covid. I guess what’s old is new again in 2025.

🎬 Entertainment

The 'Welcome to Wrexham' spinoff, called 'Welcome to Necaxa,' is set to premiere on August 7, featuring Club Necaxa investors Eva Longoria, who brought along Rob McElhenney and Ryan Reynolds as investors in her purchase of the team. While Rob McElhenney and Ryan Reynolds originally purchased Wrexham for $2.5 million dollars, which then generated $35.6 million dollars in revenue in 2024, Club Necaxa was valued at over $200 million dollars as of 2022. The team of investors are hoping to strike gold for a second time with a Mexican soccer team, and since Ryan Reynolds is involved they probably will!

📺 Tech

YouTube's ad revenue for the second quarter of 2025 surged to nearly $9.8 billion dollars, marking a significant 13% increase year-over-year. This strong performance contributed to Alphabet's overall robust quarter, with CEO Sundar Pichai noting the positive impact of AI. Clearly, people just can't get enough of those AI-generated pre-roll ads.

🤖 AI

SoftBank-backed LegalOn Technologies recently secured $50 million dollars in Series E funding, led by Goldman Sachs Growth Equity, bringing their total funding to $200 million dollars. This investment will further LegalOn's efforts to streamline legal workflows and contract review processes with their AI solutions. Literally no one will be sad when AI takes lawyer’s jobs.

🏈 Sports

Eli Manning, the former New York Giants quarterback, has invested in XTech, a company specializing in protective gear for athletes. No deal terms have been released about Eli Manning's investment, but XTech is aiming to break into the youth sports market, which is valued at $19 billion dollars, after having secured deals with all 32 NFL teams. If there’s one thing Eli Manning knows it’s how to take a good hit on the field; if only his team could have blocked better for him then he might have won a 3rd Super Bowl.

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irl Media NEWSLETTER is written, edited, and published by Chris Thompson.