A brief history of NPR funding

Summary

Summary of "A Brief History of NPR Funding"

The Indicator from Planet Money Episode: A Brief History of NPR Funding
Release Date: May 13, 2025
Hosts: Darian Woods and Adrienne Maher
Produced by: NPR

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Introduction: Setting the Stage

In this episode, Darian Woods and Adrienne Maher delve into the intricate history of NPR's funding, exploring its origins, evolution, and the current challenges it faces. The discussion provides a comprehensive overview of how NPR has navigated financial landscapes over the decades to maintain its role in public broadcasting.

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Early Beginnings of Public Radio

Darian Woods opens the conversation by tracing the roots of public radio back to the early 20th century. Non-commercial radio stations initially proliferated across the United States, primarily serving educational purposes and often affiliated with colleges.

• [03:01] Darian Woods: "The dawn of public radio starts at the beginning of the 20th century with non-commercial radio stations scattered across the country."

One of the oldest surviving stations, WHA from the University of Wisconsin, exemplifies these early educational broadcasters.

Adrienne Maher highlights a significant turning point in 1949 with the establishment of KPFA in Berkeley by pacifist Lewis Hill, marking the first listener-supported radio station in the U.S. This station broadened the scope of public radio to include diverse and sometimes controversial topics.

• [03:26] Adrienne Maher: "A big turning point came in 1949 when a wealthy pacifist by the name of Lewis Hill started what's believed to be the first listener-supported radio station."

Darian Woods adds that KPFA's eclectic programming—ranging from marijuana advocacy to LGBTQ issues and featuring beat poets like Allen Ginsberg—demonstrated the potential of public radio to serve a wide array of interests.

• [03:41] Darian Woods: "This one covered marijuana advocates, LGBTQ issues, beat poets like Allen Ginsberg."

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Formation of NPR and Early Funding Models

The pivotal moment in NPR's history occurred in the 1960s when radio entrepreneurs from the University of Michigan influenced Congress to amend the Public Television Act, officially creating the Public Broadcasting Act. This legislative change led to the establishment of the Corporation for Public Broadcasting (CPB), which in turn founded NPR.

• [04:03] Adrienne Maher: "And there at the beginning was Jack Mitchell."
• [04:49] Adrienne Maher: "Scotch tape on the bill sounds very public radio to me for some reason."

Jack Mitchell, NPR’s first employee, recounts his early days at NPR, where he took on diverse responsibilities, including producing the now-renowned program All Things Considered.

• [05:00] Jack Mitchell: "Well, I was the first employee of NPR for one thing."
• [05:09] Darian Woods: "From National Public Radio in Washington, I'm Robert Connolly with All Things Considered."

Initially, NPR's funding model was straightforward: Congress allocated funds to the CPB, which then disbursed payments to NPR for producing radio content.

• [05:26] Adrienne Maher: "So at this time, the funding model for NPR was fairly simple."

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Expansion and Financial Challenges in the 1980s

The 1970s saw significant growth for NPR, but the landscape shifted dramatically in the early 1980s under President Ronald Reagan's administration, which sought to reduce public media funding by 20%.

• [05:39] Darian Woods: "NPR expanded a lot in the 1970s, but then in the early 1980s, Ronald Reagan pushed Congress to reduce public media funding and it did by 20%."

Jack Mitchell explains that NPR attempted to counteract these cuts by expanding operations, a strategy that ultimately backfired due to poor financial management.

• [06:14] Darian Woods: "What we can't make up for in profit, we'll make up for in volume."
• [06:17] Jack Mitchell: "That's right, exactly."

The financial strain led to a severe deficit by 1983, forcing NPR to lay off nearly a third of its staff—a crisis point that necessitated a fundamental reevaluation of its funding approach.

• [06:42] Jack Mitchell: "It came to a crisis. I mean, we literally couldn't pay the rent. The phones were gonna be cut off."
• [07:02] Jack Mitchell: "It was awful."

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Revamping the Funding Model

In response to the deficit, NPR and the CPB restructured the funding model. Instead of receiving a lump sum from the CPB, most federal funds were redirected to local member stations. These stations, in turn, purchased NPR programming, ensuring a more decentralized and resilient funding stream.

• [07:03] Adrienne Maher: "So the CPB and NPR decided that instead of giving NPR a lump sum, the CPB would send most of this funding to local stations who would then buy radio shows from NPR."

Jack Mitchell notes that this strategy made it politically easier to justify continued funding, as it appeared that money was flowing to local stations rather than a central NPR entity.

• [07:19] Jack Mitchell: "Keep the money coming. Because the Republicans were all for cutting it all off, but it was less unacceptable to them if it was went through the stations."

This shift empowered member stations, giving them greater influence over NPR's direction and ensuring broader national representation.

• [07:35] Darian Woods: "And this is essentially the current system."

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Defense Against Political Threats and Maintaining Funding

The resilience of NPR's funding model was further tested in the 1990s when House Speaker Newt Gingrich attempted to eliminate public broadcasting funding. However, the decentralized structure, with station managers advocating locally, effectively thwarted these efforts.

• [07:53] Jack Mitchell: "But when you had station managers talking to their congressmen, then they make the argument, this money's going to us."

Despite these defenses, new challenges emerged in recent years. In the current political climate, federal funding for NPR remains under threat. Earlier this year, NPR CEO Katherine Marr faced scrutiny from a Republican-led subcommittee alleging political bias. She countered these claims by emphasizing NPR's commitment to serving all Americans through its diverse member stations.

• [08:28] Adrienne Maher: "Earlier this year, a Republican led subcommittee in Congress called NPR CEO Katherine Marr to testify about alleged political bias."

On May 1st, President Trump signed an executive order aimed at defunding NPR and PBS. The order specifically directed that federal funds no longer be sent directly to NPR and prohibited member stations from using federal money to support NPR, casting uncertainty over the future of NPR programming.

• [08:32] Darian Woods: "But several weeks after that testimony, on May 1st, Trump signed his executive order to defund NPR and PBS."

Gabrielle Jones, interim CEO of Louisville Public Media, expressed concern over the executive order, indicating that the situation remains "a wait and see mode."

• [09:16] Gabrielle Jones: "We're really all just in a very much a wait and see mode."

The potential cessation of member stations purchasing NPR shows could deal a significant blow to NPR, given that approximately 30% of its funding comes from these stations.

• [09:31] Darian Woods: "NPR also receives about 30%, mostly from its 246 member stations."

However, the decentralized funding approach may offer some protection, as local stations often have their own fundraising mechanisms and community support networks.

• [10:16] Darian Woods: "NPR's defenses against political attacks might come from that compromise Jack Mitchell helped facilitate in the 1980s."

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Conclusion: The Future of NPR Funding

The episode concludes by highlighting the ongoing efforts of public media leaders like Gabrielle Jones to rally community support and advocate for the importance of public broadcasting. The historic funding structures and local advocacy play a crucial role in NPR's ability to withstand political and financial pressures.

• [10:32] Gabrielle Jones: "We've been focused over the last several weeks in talking to our community about ways that they can be make their voices heard and reach out to lawmakers and people like that to let them know how important public media is to them."

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Production Credits

This episode was produced by Julia Ritchie, with engineering by Neal Rauch and Kwesi Lee. Sarah Juarez handled fact-checking, and Kate Concannon was responsible for editing. The Indicator is a production of NPR.

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Notable Quotes with Timestamps

• Darian Woods | [03:01]: "The dawn of public radio starts at the beginning of the 20th century with non-commercial radio stations scattered across the country."
• Adrienne Maher | [03:26]: "A big turning point came in 1949 when a wealthy pacifist by the name of Lewis Hill started what's believed to be the first listener-supported radio station."
• Jack Mitchell | [05:00]: "Well, I was the first employee of NPR for one thing."
• Jack Mitchell | [06:42]: "It came to a crisis. I mean, we literally couldn't pay the rent. The phones were gonna be cut off."
• Darian Woods | [07:03]: "So the CPB and NPR decided that instead of giving NPR a lump sum, the CPB would send most of this funding to local stations who would then buy radio shows from NPR."
• Gabrielle Jones | [09:16]: "We're really all just in a very much a wait and see mode."

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This comprehensive overview encapsulates the key discussions and insights from the episode, providing listeners with a clear understanding of NPR's funding history and the challenges it faces today.

Transcript

[Unknown Speaker]

Npr.

[Darian Woods]

Adrienne Maher, Darian woods, when you tell people that you work for npr, do you ever get this response? Have you got to meet the great Ira Glass?

[Unknown Speaker]

Who's the name?

[Darian Woods]

This is from when I was being interviewed this year by the New Zealand station rnz. So Ira Glass, the founding host of this American Life. To be clear, he doesn't work at npr.

[Adrienne Maher]

Only all the time. Darian Right. I also get asked about whether I run into Kai Rysnal from Marketplace.

[Darian Woods]

Tiny desk is a big one.

[Adrienne Maher]

Yes, that one is us.

[Darian Woods]

Yes. Not to mention the war correspondents, national, international and investigative journalists that we are lucky to work with.

[Adrienne Maher]

And I guess it makes sense. You know, we're all part of the same extended public radio Marvel universe.

[Darian Woods]

Another question we get is how are we funded? That's coming up a lot these days. President Trump just signed an executive order to stop all federal funding to PBS and National Public Radio. This is the indicator from Planet Money. I'm Darian Woods.

[Adrienne Maher]

And I'm Adrienne Ma. Today on the show we open up our books. Just how much does public radio rely on federal funding and where does the other money go come from?

[Darian Woods]

Partly from our sponsors right now.

[Unknown Speaker]

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[Darian Woods]

The dawn of public radio starts at the beginning of the 20th century with non commercial radio stations scattered across the country. The Wisconsin College of the Air presents. These were usually tied to colleges. The oldest one that still running is WHA from the University of Wisconsin. This week, Mr. Bowles will describe the government's new dairy products program designed to get you more butter. We could all do with a bit more butter, Adrian.

[Adrienne Maher]

Could we though? Back then, these non commercial radio stations were mostly for education. A big turning point came in 1949 when a wealthy pacifist by the name of Lewis Hill started what's believed to be the first listener supported radio station.

[Darian Woods]

In the US this station was KPFA in Berkeley and it had a more eclectic range of topics. This one covered marijuana advocates, LGBTQ issues, beat poets like Allen Ginsberg. I saw the best minds of my generation destroyed by madness.

[Adrienne Maher]

So pretty eclectic, huh?

[Darian Woods]

Yes.

[Adrienne Maher]

So having hundreds of different non commercial stations around the country is great for local needs. At the time there were also loose organizations that helped these stations collaborate.

[Darian Woods]

And that's the way it might have stayed if it weren't for some entrepreneurial radio folks from the University of Michigan in the 1960s. So Congress was working on a big bill called the Public Television act to fund public tv. And thanks to the University of Michigan lobbyists, they got the name changed to the Public Broadcasting Act. They tacked on the words and radio with Scotch tape, literally Scotch tape all over the bill and established the Corporation for Public Broadcasting or the cpb. CPB V then went on to create npr.

[Adrienne Maher]

Scotch tape on the bill sounds very public radio to me for some reason.

[Darian Woods]

Yeah, like DIY Renegade, but all over the details of the legislation.

[Adrienne Maher]

And there at the beginning was Jack Mitchell.

[Jack Mitchell]

Well, I was the first employee of NPR for one thing.

[Adrienne Maher]

Jack's title, Program Associate.

[Jack Mitchell]

It meant just do whatever needed doing.

[Darian Woods]

From National Public Radio in Washington, I'm Robert Connolly with All Things Considered. Among the tasks he would end up doing, producing All Things considered, this 90 minute live news program that would go on to air on those hundreds of non commercial radio stations around the country.

[Adrienne Maher]

So at this time, the funding model for NPR was fairly simple. Congress sent money to the Corporation for Public Broadcasting, or cpb, and then the CPB would pay NPR to make radio shows.

[Darian Woods]

NPR expanded a lot in the 1970s, but. But then in the early 1980s, Ronald Reagan pushed Congress to reduce public media funding and it did by 20%. And that effectively meant a 20% cut to NPR.

[Jack Mitchell]

Now NPR probably could have dealt with that, except that the President was Frank Mankiewicz, who had grand visions and little sense of money. And so his solution was to expand.

[Darian Woods]

What we can't make up for in profit, we'll make up for in volume.

[Jack Mitchell]

That's right, exactly.

[Adrienne Maher]

Yeah. There was actually terrible financial management. Frank Mankiewicz did help NPR diversify its funding though, raising money from private sources. You know, like you hear those messages. NPR receives financial support from such and such foundation. But this wasn't enough to offset its badly kept books. In 1983, NPR was running a multimillion dollar deficit.

[Jack Mitchell]

It came to a crisis. I mean, we literally couldn't pay the rent. The phones were gonna be cut off. They could padlock the door. It was at the moment of we could go off the air.

[Darian Woods]

Jack became head of programming and had to lay off nearly a third third of NPR staff.

[Jack Mitchell]

It was awful.

[Adrienne Maher]

And it was clear something had to change long term about how NPR was funded. So the CPB and NPR decided that instead of giving NPR a lump sum, the CPB would send most of this funding to local stations who would then buy radio shows from NPR just to.

[Jack Mitchell]

Keep the money coming. Because the Republicans were all for cutting it all off, but it was less unacceptable to them if it was went through the stations. And there was a philosophy that public broadcasting was to represent the entire country.

[Darian Woods]

And this is essentially the current system. It gave member stations around the country more sway with NPR's direction. And the benefits to NPR of spreading public radio funding across the country became clear in the 1990s. Republican House Speaker Newt Gingrich tried to eliminate public broadcasting funding.

[Jack Mitchell]

But when you had station managers talking to their congressmen, then they make the argument, this money's going to us.

[Adrienne Maher]

But today there's another big threat to public funding of media.

[Gabrielle Jones]

Today we are looking at the more than half a billion dollars federal taxpayers spend annually to fund.

[Adrienne Maher]

Earlier this year, a Republican led subcommittee in Congress called NPR CEO Katherine Marr to testify about alleged political bias. She strongly disputed that claim and stressed that federal funding goes to member stations across the country to serve all Americans.

[Unknown Speaker]

My belief is that the funding is essential to the public radio system.

[Darian Woods]

But several weeks after that testimony, on May 1st, Trump signed his executive order to defund NPR and PBS.

[Adrienne Maher]

The executive order aims to do two things to NPR. It demands a stop to federal funding directly to NPR. And secondly, it orders member stations not to use any federal money they receive to benefit npr. Now, it's unclear whether this means member stations cannot buy any NPR shows without losing federal funding. Gabrielle Jones is interim CEO of Louisville.

[Darian Woods]

Public Media So you've chosen quite an interesting time to be interim CEO.

[Gabrielle Jones]

It chose me, but yes, it's definitely an interesting time.

[Adrienne Maher]

We asked her whether they're going to stop playing NPR shows.

[Gabrielle Jones]

We're really all just in a very much a wait and see mode.

[Adrienne Maher]

If the executive order holds up legally, then this is definitely a problem for npr. The first part of blocking federal money going directly to NPR hurts, but is manageable.

[Darian Woods]

Yeah, it's often said that NPR receives only about 1% of its funding directly from the federal government. Other revenue includes donations, returns from its endowment and corporate sponsorship. But it's also worth considering this NPR also receives about 30%, mostly from its 246 member stations.

[Adrienne Maher]

And so if NPR's member stations were to stop buying NPR shows, that could be a massive blow. Now that's a big if. Federal funds typically make up a small share of local stations revenue, about 13% on average. But this varies a lot. And so federal funding going away would be painful for member stations, even existential for some, but most would be able to weather the cuts.

[Darian Woods]

NPR's defences against political attacks might come from that compromise Jack Mitchell helped facilitate in the 1980s, getting the lion's share of federal funding going through the member stations. Those member stations, like Louisville Public Media, are advocates at a local level.

[Gabrielle Jones]

We've been focused over the last several weeks in talking to our community about ways that they can be make their voices heard and reach out to lawmakers and people like that to let them know how important public media is to them. That our community here has shown that together.

[Darian Woods]

This episode was produced by Julia Ritchie with engineering by Neal Rauch and Kwesi Lee. It was fact checked by Sarah Juarez. Kate Concannon edits the show and the indicator is a production of npr.

[Unknown Speaker]

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