MarketInk: KPBS’ loss of $4.3 million in taxpayer funding means another fundraising campaign

Public broadcasting media outlets around the country got the bad news last week about the end of federal government taxpayer funding.

Congress approved a rescission bill proposed by the Trump administration’s Department and Government Efficiency to claw back $9 billion in federal funding previously allocated for foreign aid and public broadcasting. The package codifies roughly 5% of the $190 billion in government cuts identified by DOGE.

The Congressional vote means the Corporation for Public Broadcasting, a nonprofit that distributes federal funds to NPR radio stations and PBS TV affiliates, is on track to lose $1.1 billion in taxpayer funds over the next two years for fiscal years 2026 and 2027.

The vote also means public media will now face the exact same pressures as every other radio and television network out there: the ability to pay their own bills by attracting an audience and advertisers.

White House deputy press secretary Harrison Fields said in a statement that “NPR and PBS will have to learn to survive on their own” without “taxpayer subsidies.”

For San Diego’s KPBS, operator of a public broadcasting radio and TV station, the federal cutback means a loss of $4.3 million annually. The loss of federal funding represented roughly 12% of KPBS’ annual $38.5 million budget, KPBS said.

So, how will KPBS respond to the upcoming revenue reduction?

“Our plan is a fundraising campaign to make up the difference,” KPBS general manager Deanna Mackey told Times of San Diego.

“Because of our strong financial position, we have time to decide on how to move forward. We are hopeful and confidence the community will help us make up the difference.”

Details about KPBS’ newest fundraising campaign are available here. The web pages offer content on why KPBS is essential.

The website says, “Without federal funding, KPBS is now more reliant on member support than ever before. We will need help from our community to keep providing the trusted news and programming San Diegans like you rely on. Can you help us fill the gap?”

“We’ve been letting the community know about the potential for losing funding since January,” said Mackey. “We have received hundreds, if not thousands, of letters and calls of support. We’re grateful that people have been making additional donations, which means a lot to me and my team. ”

KPBS is one of San Diego’s oldest media outlets. The FM radio station was launched as KEBS in September 1960. The TV station began broadcasting as KEBS-TV in June 1967. The outlets joined PBS when the network launched in October 1970, and the call letters were changed to KPBS.

Mackey said, “We’ll undergo some belt-tightening on such things as diminishing travel and some operational expenses. But, we are in a strong financial position and we have reserves to fall back on.”

As one of America’s larger public media outlets, KPBS will have an easier time making up the deficit compared to smaller stations. As reported by the Los Angeles Times, public media outlets in Southern California’s urban areas are less dependent on federal funding than stations in small, rural markets, which lack the resources needed to generate a level of donations that compares to wealthier Californians.

Mackey said KPBS viewers and listeners may not notice any changes in programming as a result of losing taxpayer subsidies.

“I don’t believe so,” she said when asked if favorite shows are going away.

“The Corporation for Public Broadcasting, the nonprofit that receives the funds, will be closing down, but PBS and NPR will not be closing down.

“Stations in larger markets will make-up the difference with fundraising, but stations in rural, low-income areas without a strong donor base may go under. It (the loss of federal subsidies) could mean up to 100 stations out of business. It’s hard to know at this time.”

Before the Congressional budget cuts, Mackey said the anticipated $4.3 million would have arrived to a KPBS bank account in two separate tranches, including 70% of the total amount in November 2025 and the remaining 30% in March 2026.

In a statement issued following the Congressional vote, Mackey said, “Federal funding represents $4.3 million of KPBS’ annual budget and provides critical seed money for our operational expenses, including paying our PBS and NPR membership dues.

“We have been preparing for this scenario and are fortunate to be in a strong financial position, but the loss of funding will negatively impact us and influence the plans we have for the future. For 65 years KPBS has been here for San Diego and we are taking steps to ensure we will be here for at least 65 more.

“There’s no denying it is heartbreaking that after decades of outstanding public service by more than 1,000 public media stations in all corners of the United States, the federal investment in American communities has disappeared.

“KPBS and our fellow public media stations provide an essential service that helps our communities feel inspired, informed and connected. An investment in public media is an investment in the American people.”

Not everyone agrees that public media is “an investment in the American people.”

A 2021 study from the University of Pennsylvania found that the U.S. government spends considerably less on public media than other nations. As reported by The Guardian, the study revealed that Germany spends $142.42 a person on its public media, Norway spends $110.73, the UK $81.30, and Spain $58.25, while the U.S. spends just $3.16.

In 2023, NPR and PBS quit Elon Musk’s Twitter after being labeled “government-funded media” and “state-affiliated media,” the same term it uses for propaganda outlets in Russia and China. At the time, CPB argued that federal funding it received was so trivial as to render such a designation unfair and inaccurate.

Now, CPB advocates say the loss of funding poses an existential threat to democracy.

Clearly, the loss of government funding for CPB has become a political partisan issue, especially since Congress holds the power of the purse.

Republicans have framed the spending cuts bill as part of an effort to target waste, fraud and abuse in government-funded programs.

Meanwhile, Democrats argued that the cuts will have devastating effects on the American media landscape and an especially harmful impact on rural Americans, who rely on local NPR and PBS stations for local news.

However, living rurally is a choice. While country living comes with less automobile traffic, one tradeoff is slower internet, because it’s too expensive to run fiberoptics to the middle of nowhere. Still, for many rural households, satellite TV provides the same programming choices as customers have in large U.S. cities.

Also, no one today can seriously claim that a child can’t learn how to read, count and spell without Bert and Ernie. Rather, the list of educational programs and computer apps available for kids in event the most remote parts of the country is a long one.

White House press secretary Karoline Leavitt shot down concerns over the impact of public media cuts on safety when she said during a recent briefing, “I am not sure how NPR helps the public safety of our country, but I do know that NPR, unfortunately, has become really just a propaganda voice for the left.”

Today, 99% of the U.S. population lives within listening range of at least one public media station, The Guardian said.

“Nowhere in the Constitution does it say Congress should fund a national media,” the libertarian Cato Institute said in a statement.

Mackey’s weekend fundraising email said, “At the request of the Trump administration, Congress has voted to rescind two years’ worth of funding that had previously been approved for public media stations across the country.”

Trump has routinely criticized CPB on the campaign trail prior to his landslide election victory. He has described NPR on his Truth Social media platform as “an assembly line of propaganda.”

In addition to the $1.1 billion cut to CPB, the legislative package included rescinded funding for the U.S. Agency for International Development, with around $7.9 billion in cuts to the agency.

The Shipyard acquires TinyWins to improve digital capabilities

The Shipyard, a Columbus, Ohio-based advertising agency with offices in San Diego, Newport Beach, and Sacramento, has announced the acquisition of TinyWins, a global digital studio headquartered in Santa Monica.

Terms of the acquisition were not disclosed.

A statement said TinyWins’ co-founders Lillian Marsh and Matty Ayers, along with chief executive officer and partner Alwyn De Gallegos, will join The Shipyard’s leadership ranks as partners, reporting directly to Matt Bruot, president of The Shipyard.

The Shipyard will assume full ownership of TinyWins, with its team of more than 75 professionals across the U.S. and international markets remaining in place.

“We are building North America’s leading independent agency,” said Rick Milenthal, chairman and CEO, The Shipyard. “This means excellence in paid, owned, and earned media in a seamless model that makes us a force multiplier fueling growth for clients. TinyWins brings exceptional talent, shared values and a passion for innovation that accelerates that mission.”

Known for its tech-forward approach to brand-building, TinyWins brings world-class capabilities in strategy, creative, design, digital, and development, according to The Shipyard.

TinyWins has expertise in AI, Web3, app development and platform innovation, which “further enhances The Shipyard’s ability to future-proof brands, products, and experiences,” a statement said. “By integrating these strengths, The Shipyard continues to redefine what modern, insight-driven brand performance looks like.”

TinyWins has worked with brands such as grocery store chain Albertsons, Samsung, Hoka athletic footwear, Budweiser, and Warner Music Group, according to advertising industry trade news sources.

“From day one, TinyWins has been about turning timeless human emotional truths into meaningful brand impact one tiny win at a time,” said Marsh, a TinyWins cofounder.

“Joining forces with The Shipyard is our biggest victory to date, and gives us more firepower to bring our brand-led thinking to new categories, new clients, and larger canvases, all while staying true to what’s always made us different.

“After years of building brand love for legacy brands and the most innovative start-ups alike, it’s an exciting new chapter to do that on a bigger stage with a partner who shares our obsession for emotionally triumphant work.”

Jegi Clarity, a New York-based mergers-and-acquisition advisory firm representing media, events, marketing, information and technology industries, advised The Shipyard on the TinyWins acquisition.

The acquisition is the latest in a series of strategic moves by The Shipyard to expand its offerings across paid, owned and earned channels, following a 2023 investment in The Shipyard by Alaris Equity Partners, a statement said.

In April 2024, The Shipyard acquired Fahlgren Mortine, a public relations firm also headquartered in Columbus, Ohio, as well as Turner, a travel, tourism and active lifestyle shop that FM acquired in 2014.

The Shipyard’s previous acquisitions of FM and Turner also were advised by Jegi Clarity, the advisory firm said.

The Shipyard also announced key leadership appointments, including William Gellner as chief creative offficer, James Ou as VP, data intelligence and Patti Ziegler as managing partner.

In addition to its California offices and Columbus, Ohio headquarters, The Shipyard also has offices in Denver, Miami, Chicago, New York City, Cleveland, Dayton, Ohio and Boise, Idaho.

San Diego AMA Hosts Summer Social

The American Marketing Association San Diego chapter will host a summer networking social from 5:30 to 8 p.m., Tuesday, Aug. 5 at SeaWorld San Diego’s The Waterfront event center, 500 Sea World Dr., San Diego. The event is open to the public.

The event will include introductions of the 2025-2026 AMA San Diego board of directors. Cost to attend is $60 for members, $81 for nonmembers and $274 for a four-ticket package. Cost includes a taco bar, two drink tickets and access to SeaWorld San Diego. Discounted parking is available for $15 per car.  

For more information, send an email to info@sdama.org or visit https://sdama.org.

Rick Griffin is a San Diego-based public relations and marketing consultant. His MarketInk column appears weekly on Mondays in Times of San Diego.