CNN says concern over massive government payouts to outlets like Politico is a ‘false right-wing conspiracy theory’

Brian Stelter called the claim that Politico was receiving government subsidies "rampant right-wing misinformation." He shared the memo from the outlet's heads, Goli Sheikholeslami and John Harris, which claimed that the outlet had not received government funding. The BBC also put out a statement to justify the funding that their BBC Media Action group has received from USAID.

Addressed to the "Team," that memo reads: "As surely many of you saw today, there was a spirited discussion at the White House and among officials connected to the Department of Government Efficiency on the subject of government subscriptions for journalism products, at POLITICO and other news organizations.

"This is a fine conversation to have, and we welcome it. The value of POLITICO subscriptions is validated daily in the marketplace. Some parts of today's conversation, however, were confusing and left some people with false understandings. For this reason, we want you to hear from us on several points.

POLITICO has never been a beneficiary of government programs or subsidies—not one cent, ever, in 18 years.

"We have offered a professional subscription service, starting with POLITICO Pro, since 2012. It provides both private and public sector clients with granular, fact-based reporting, real-time intelligence, and tracking tools across key policy areas. We are proud of the value our POLITICO Pro platform and policy journalism gives to all subscribers. As a practical matter, the overwhelming majority of our professional subscriptions under POLITICO Pro are in the private sector.

"The value of this journalism is clear, as evidenced by our subscription re-enlistment rates. In any given year, approximately 90 percent of POLITICO Pro subscribers renew their contracts when they come due. That rate is industry leading. Our subscribers tell us, time and again, that POLITICO Pro makes them smarter and helps them do their job more effectively, and efficiently.

"It is not uncommon for clients to wish to review and discuss their contracts at renewal time. We always benefit from the feedback. We are happy to have such conversations with our federal government subscribers and are confident that most will see the continued value. Simply put, the services, tools, and journalism we supply on the Pro Platform makes all our clients—private sector and public sector alike—better informed and arms them with real-time news and information and reporting they simply cannot get anywhere else.

"Here is the most important point for our newsroom and subscribers alike. We believe the work of a new administration—and the work being done by DOGE—is a hugely important story. In particular because of the ambition of the new administration to transform large sections of the government, our responsibility to cover this from every angle is urgent.

"In the meantime, please know that our business is strong and enduring-and so is our commitment to doing right by our audience as publishing professionals and journalists."

https://twitter.com/brianstelter/status/1887276786368541104

The article from CNN on the matter was titled "White House says it will cancel $8 million in Politico subscriptions after a false right-wing conspiracy theory spreads." However, there is no falsity to the fact that over $8 million of government money was used by the Biden administration across agencies to purchase these subscriptions. The payments did not come from one agency, but across many agencies, including the Department of Health and Human Services, Department of the Interior, Department of Energy, Department of Agriculture, Department of Commerce, Food and Drug Administration, Office of the Secretary, Departmental Offices, Department of Transportation, and Department of State.

The reasoning for calling it "misinformation" is because many on social media have said that the funds to pay for these subscriptions have been coming entirely from USAID. The payments have come from the whole of government across many multiple agencies. Some would say that the subscription fees are not "subsidies," yet it seems a little far-fetched to believe that the Department of Energy, for example, would need to spend $1.29 million on subscriptions to Politico Pro's inside-the-beltway political analysis.

The Federalist's Mollie Hemingway pushed back against Stelter's myopic analysis, saying "What utterly *shameless* propaganda you're uncritically regurgitating, Brian." When Stelter asked if "Republican officeholders" would be canceling their subscriptions, she noted, "Your question suggests a shocking illiteracy about the nature of the problem with millions of taxpayer dollars going to five-figure subscriptions to left-wing media organizations."

https://twitter.com/MZHemingway/status/1887313223164088800

CNN quoted AP reporter Byron Tau, who in response to Kyle Becker's reporting on the matter, said "I looked at these contracts and I have my own fun fact. This is occurring because agencies (not just USAID) are buying subscriptions to Politico's Pro editorial product, not because Politico is getting grants or other federal funding."

https://twitter.com/ByronTau/status/1887158522644693090

Again, the reporting from Becker showed exactly that when he said "Fun Fact: Politico received USAID funds." He also showed that HHS was spending $1.37 million, the Department of the Interior was spending $1.35 million, while the Departments of Agriculture and Commerce were in it for half a million each.

CNN claimed that Becker's report was a "false narrative," without noting that Becker's report consisted of screenshots from USA Spending, a website that shows federal government expenditures. What CNN calls a "false narrative" is the report that the funds to pay for the subscriptions come from USAID alone, when in fact the truth that they come from the whole of government is far more damning.

White House Press Secretary Karoline Leavitt on Wednesday, in response to the report of the $8 million in spending, said that she could "confirm that the more than $8 million taxpayer dollars that have gone to essentially subsidizing subscriptions to Politico on the American taxpayers' dime will no longer be happening."

"Looks like billions of dollars have been stollen at USAID," [sic] Trump said in all caps on Truth Social, "and other agencies, much of it going to the fake news media as a 'payoff' for creating good stories about the Democrats. The left wing 'rag,' known as 'Politico,' seems to have received $8,000,000. Did the New York Times receive money???" He asked. "Who else did??? This could be the biggest scandal of them all, perhaps the biggest in history! The Democrats can't hid from this one. Too big, too dirty."