You have an interesting perspective. But governments can create, or shall I say foster, market incentives -- and not just by getting out of the way. A cap and trade program illustrates that, as does mandatory product labeling. Markets and governments have more akin to flowers and gardens than to oil and water. They need each other to function.
Equitably means no one gets gov funding - no one is favored just like in the case of organized religion.
> Ideally a way that would create a market incentive for producing local news that people read.
Government doesn’t create market incentives, it destroys and distorts them.