The reactions from the Democrats and the press have been nothing short of dramatic, with many expressing shock and outrage at DOGE's intent to eliminate wasteful spending. This notion seems so foreign to some political thinkers that it has been likened to a hate crime.
According to RedState, a parallel narrative is unfolding, involving Politico and other media outlets, and the federal funding these entities receive. The revelation has sparked outrage, defensive reactions, and misattributions, all against the backdrop of staggering monetary figures that often defy comprehension. A list of journalism outlets and wired services, including The New York Times, The AP, BBC, Reuters, and others, have come under scrutiny.
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A recent development revealed that Politico was struggling to meet its payroll obligations. Speculations soon arose on social media, suggesting that the news outlet had been receiving millions of dollars in federal payouts. During a White House press briefing, Karoline Leavitt announced that these payments would be discontinued, sparking a whirlwind of intrigue and accusatory commentary.
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However, it has been revealed that Politico, along with the other named outlets, were not receiving all payments from USAID. Furthermore, the funds being paid to Politico were not government grants but payments for subscriptions to Politico Pro, the outlet’s comprehensive coverage of events in Washington D.C. These are substantial sums, with some estimates suggesting that the total over the past few years runs into tens of millions of dollars.
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While these figures may seem exorbitant, they can be rationalized to some extent. Screenshots across the web show departments and agencies spending hundreds of thousands of dollars on a limited number of accounts. However, when these payouts are spread over several years, the annual cost per account holder becomes more manageable, falling within the standard rate for this comprehensive service. Yet, the devil is in the details.
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The scope of these government contracts and the sums paid out indicate a significant source of revenue for the news outlet, courtesy of federal contracts. This puts Politico in a precarious position regarding objectivity. For instance, the National Park Service has a billing with Politico for $860,000. Even when spread out over a four-year period and divided among 55 employees, this amounts to over $4,000 per account, a significant source of revenue for Politico.
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Another detail that raises eyebrows is the non-compete designation on some of these subscription contracts. This essentially grants Politico an exclusivity deal within federal agencies. This exclusivity has led to Politico increasing the annual contract by about $10,000 annually, or close to $200 per subscription, leading to hundreds of thousands each year just in price increases. This arrangement raises questions about the potential for unbiased news reporting.
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Moreover, contrary to government contract policies, there was no competition sought out in obtaining these Politico Pro accounts. This suggests a preferential deal for the outlet. Even if all of this could be justified as legitimate business, it raises the question of how likely a news outlet would be to hold accountable the very entity supplying them with lucrative accounts.
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This situation is reminiscent of a similar issue I covered in my Townhall media column in December, when Mike Benz revealed how Reuters was involved in numerous government contracts. Beyond its news division, the company offers business services, payroll functionality, and other software options. It worked with 11 agencies, from which it drew in millions of dollars from each annually. The same question applies to Politico today; how likely are you as a news outlet to report on adverse issues that would impact these government bodies, when they hold a substantial paycheck for your outlet?
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There have been instances where Politico has seemingly acted in the interest of its massive customer. For example, when the Biden campaign needed a defensive strategy ahead of the 2020 election, a letter from 51 intelligence officials declaring the Hunter Biden laptop story as “Russian disinformation” was published by Politico. Reporters Tara Palmeri and Marc Caputo have also detailed how stories about Hunter Biden were killed during their time at Politico.
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This is the outlet that has been raking in large amounts annually from the same government it has shown to serve as a protection agent. It remains to be seen how many other outlets have similar deals in the system. This could escalate into a significant issue for the traditional media industry, potentially leading to further loss of trust, credibility, and audience share.
