The 2025 funding reset: Why the role of intermediaries matter

 As of January 25, 2025, the U.S. government-funded subsidies for independent media were suspended for three months. Some months later, it became clear that NGOs could no longer rely on the US as their donor for development aid. USAID has been completely dismantled. In perspective, more than 50% of global support has gone.

No one can compensate for this; it substantially affects the remaining global resources supporting media development.

Aside from this sudden, unforeseen development, a global trend had already been ongoing: the erosion of democracies, directly resulting from budget cuts for development aid and democracy projects. Even the most progressive governments, such as Norway and France, announced significant budget restrictions, not to mention right-wing oriented governments such as Sweden and the Netherlands, and, expected in the near future, the EU.

This naturally raises the question of the role of intermediary entities such as the European Journalism Centre. Particularly during funding crises, many argue that the process should be streamlined, with funds directed straight to organisations or individuals in need, bypassing intermediaries altogether.

The issue was debated this year at the International Journalism Festival in Perugia. EJC’s Director of Programme and Impact, Vera Penêda, highlighted how intermediaries can bring significant benefits to even the smallest media organisations: by providing access to expertise and tools, ensuring a fair and merit-based redistribution of funds, and encouraging cross-border collaboration. 

From a practical perspective, intermediaries manage funds from multiple donors as a single pool to be redistributed, with the capacity to handle large sums that end users could not administer on their own. Contrary to common belief, this does not slow the process; on the contrary, redistribution mechanisms are fast, timely and well organised.

Another crucial aspect concerns independent or small outlets: many lack the legal framework to receive large donations directly. In such cases, the intermediary can “host” them fiscally, enabling them to access funding in a regular and secure way.

Intermediaries act as multipliers and facilitators, ensuring transparent processes are carried out non-profit.

Independent media, journalists and creators constitute not only a cornerstone of democratic governance but also a critical component of Europe’s security architecture. Without strong, independent journalism and a healthy information space, hostile actors exploit the information vacuum - amplifying fear, polarisation, and distrust, thereby undermining Europe’s resilience from within.
The European Union is facing increasingly complex and interrelated crises and challenges that cannot be ignored, from growing geopolitical tensions, hybrid threats, foreign information manipulation and interference, and war and aggression. 

Solidarity should be paramount at this time, but the contrary is visible. Significantly, scarce funds at all levels and the requirement for co- or match-funding (mandatory for EU programmes) mean that media support actors are forced to compete rather than collaborate, even when in coalition, to emphasise differentiating their ‘secret sauce’ rather than common purpose and values and duplication instead of strategic consolidation. Donors, too, are potential prey to competition.