Here's my idea. 

The newspaper industry has been having problems over the years, and the economic colapse has hastened it's demise. These days people get their news from two sources, the Cable Networks(AKA the MSM)  and blogs.  The MSM is absolutly terrible.  Just look at the past 8 years.  The MSM was asleep at the switch, and to this day continues to focus on superficial fluff. It's tightly controlled by the washington establishment, which is one of the reasons why it's making such a big deal about "forgiving and forgetting" all the horrible crimes of the Bush administration.

The blogs are better, but they don't have nearly the resources they need to do real, independent journalism.

Thanks to the internet, anyone can publish whatever they want, but bloggers can't afford to send people into war zones and things like that. And even the fact that media has to be profitable in terms of selling ads and as entertainment means that it will be hard to cover things in depth.

The collapse of newspapers means lots of great writers and journalists will be out of work.

I think the government should setup a grant program for people to start blogs and produce their own media. It would be vitally important that the government not pick and choose projects based on ideology, in order to protect freedom of speech.  There would need to be some transparent metric (perhaps something as simple as page views, or people vote through a website on how to divide the money)

The for-profit media model has been bad for America.  Help create a new media environment with the goal of informing the public.

Also, this model could be applied to artwork and music as opposed to stricter copyright controls that benefit middle men, the government could levy a tax and then let people pick and choose what artists their tax dollars would go too.