The battle between technology companies and struggling newspapers is on hold for now. A bill by Representative Buffy Wicks that would require digital sites to compensate newspapers for using and linking to news articles has been shelved by the deal between Google and Wicks.

But the controversy continues.

Much of the concern about the deal is about the promotion of artificial intelligence as part of the compromise. But there is another component that is also raising eyebrows. The taxpayer money being paid out under the deal is in the red, while the federal budget is in the red and the role of news organizations in holding the government to account is tinged with red flags.

Supporters of the deal in the journalism community say the $250 million, five-year package for journalistic ventures is a good first step, even if it doesn’t require enough money. But working journalists aren’t happy with the outcome. In particular, there are concerns that the agreement puts money into developing an artificial intelligence (AI) accelerator program. Some journalists believe AI will eventually replace reporters’ jobs.

Over the past few decades, journalists have lost jobs and many newspapers have closed, largely because digital websites linking to newspaper articles have consumed much of the advertising revenue that used to keep news organizations afloat.

Faint praise for Google’s willingness to compromise, but Google and other tech companies have won the battle on several levels. Not only did they riot over the bill to force payments to newspapers that is now being killed, but the tech industry has also cautiously watched efforts in the California legislature to impose regulations on the evolving AI industry. Creating a public-private partnership with the state on AI could help influence those regulatory efforts.

The costly campaign to defeat the bill brought Representative Wicks to the negotiating table, but the amount the technology companies put on the table was less than expected.

The announced deal calls for $100 million to be provided in the first year. The state will contribute $30 million to the fund from next year’s budget and $10 million each of the next four years. Google will contribute millions more to the fund and support other journalism efforts. The AI ​​accelerator would also receive millions. The fund would be overseen by a nonprofit board based at UC Berkeley’s Graduate School of Journalism.

While the surprising AI aspect of the deal has raised the most concerns, the idea of ​​the government funding news organizations that claim to hold the government accountable is a cause for concern.

One must ask: How much will journalistic freedom in reporting on government be restricted when part of a magazine’s expenses are paid for by the government? Will journalists bite the hand that feeds them? One must also consider that the funding authority lies with UC Berkeley, an institution that relies on the legislature for its budget.

Also keep in mind that the deal is coming at a time when California’s budget is running billions in deficit.

This is not the first debate about government funding of news sites. In fact, there have been decades of disputes at the federal level over the tax dollars paid to National Public Radio.