Sounds like a conflict of interest, to get money from the government. Also, artificially propping up old ways of doing business is a rickety foundation. Newspapers as we know them occupy a narrow slice in world history. It's not like we have always had newspapers from the beginning of time up until now.
Let's investigate natural ways to accomplish the same goal of newspapers, but with our current technology. The internet has obliterated costs to publish. Compare a building full of typesetters, Linotypes, and printing presses, to WordPress and server rental. Now that doesn't address all of a newspaper's old expenses. There is still the staff: reporters spending days and weeks investigating a story, editors organizing and refining. But what does the Press, invented from scratch with our current technology, look like? I think you have to consider the different sections of an old newspaper one at a time:
1. Product reviews. Seems that there is still plenty of that, between the various specialized websites and bloggers and vloggers.
2. Lifestyle. Again, we are drowning in such coverage, like on Youtube.
3. Sports. I don't know, I don't keep up with sports. How is sports news faring?
4. Business news. Again I don't know and don't care. Someone else comment.
and finally, biggest of all:
5. The main example and, to many, the raison d'etre for news: keeping government and businesses honest, by sniffing out corruption.
Maybe the new way is without the middleman. Instead of government insider speaking anonymously to a reporter, the insider anonymously posts the leak himself.