OTTAWA—The federal government appears poised to roll out further measures Wednesday to assist news organizations in Canada, including the possibility of charitable status for media outlets.

Wednesday’s economic update is expected to outline additional initiatives by Ottawa to provide financial assistance to news organizations that have been hit by a sharp decline in revenue.

Federal officials were tight-lipped about what exactly the update may hold but industry sources say measures could come in two areas: making it easier for news organizations to assume charitable status, and a tax credit for editorial labour expenses for outlets doing civic journalism.

Both would act on recommendations from the news industry as it seeks to navigate a sharp downturn in revenues that has forced layoffs and shuttered media outlets.

The Liberal government took some action in its February budget, pledging $10 million a year over the next five years to assist local journalism, but so far has not detailed a plan to spend that money, disappointing those in the industry.

At the same time, the government said it would examine at new models to enable private giving and philanthropic support for non-profit journalism and local news. The government may announce Wednesday that it’s made progress on this front.

The federal government has faced calls to provide financial assistance and industry organizations and politicians have proposed possible remedies.

News Media Canada, which represents 800 daily, weekly and community newspapers, earlier this year proposed overhauling the Canadian Periodical Fund to extend funding to daily and community newspapers, some digital-only publications and The Canadian Press wire service.

Association president and CEO John Hinds will be in Ottawa Wednesday to see what steps the government announces next.

“The government has said they are seized of the issue ... I think they do recognize this is a problem, a crisis in the industry. They have to deal with it,” Hinds said Tuesday.

But government assistance to the media could prove controversial. In the Commons on Monday, Conservative MP and former journalist Peter Kent suggested the Liberals might be trying to “buy off” the media in an election year.

“A healthy democracy relies on a free and independent press. It would be unacceptable for the Liberals to even appear to be trying to influence favour with the media,” Kent said in question period.

Heritage Minister Pablo Rodriguez said that journalism plays a “fundamental role” in democracy and said the government is looking at further measures while “respecting an absolutely fundamental and non-negotiable basic principle of journalistic independence.”

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