Taken at face value this looks very bad — a direct federal subsidy to media organizations. Since journalism is the main watchdog of government, both the appearance and the reality of conflict of interest could not be more egregious.
Still, one shouldn’t be surprised. Media and government have had a fist-in-glove relationship for as long as both have existed. The only thing new in modern times is the emergence of industrial-scale mass media and the technology of psychological operations. Think last century’s propaganda methods and their implementation by Madison Avenue.
One should, however, notice that the proposed federal subsidy of media is an anti-liberty event. It is the sort of thing our First Amendment was created to stop.