Facebook says it is investing 300 million over the next three years in local news programs, partnerships and other initiatives.
The money will go toward reporting grants for local newsrooms, expanding Facebook's program to help local newsrooms with subscription business models and investing in nonprofits aimed at supporting local news.
The move comes at a difficult time for the news industry, which is facing falling profits and print readership.
Facebook, like Google, has also been partly blamed for the ongoing decline in newspapers' share of advertising dollars as people and advertisers have moved online.
Campbell Brown, Facebook's head of global news partnerships, acknowledges the company 'can't uninvent the internet', but says it wants to work with publishers to help them succeed on and off the social network.
"The industry is going through a massive transition that has been underway for a long time," she said.
"None of us have quite figured out ultimately what the future of journalism is going to look like but we want to be part of helping find a solution."
Facebook has increased its focus on local news in the past year after starting off 2018 with the announcement that it was generally de-emphasizing news stories and videos in people's feeds on the social network in favor of posts from their friends.
(with news agency inputs)