Coverage of local politics by U.S. local daily newspapers has dropped substantially over the last two decades. At the same time, online media platforms proliferated and the print newspaper industry consolidated. This paper studies the sources of the decline of local political news. To this end, I build a demand and supply model of the newspaper industry with endogenous local and national news content. The model allows for readers to have heterogenous preferences over newspaper content, for the outside option to reflect the increased media choice over the sample period, and for publishers to exploit cost efficiencies in the production of news. I estimate the model using a novel panel of newspapers’ characteristics, local and national political coverage, and ownership information. I find that consolidation of newspapers explains about one third of the declining trend in local political coverage, while changes in readers’ demand for print newspapers and preferences for local topics account for the remaining two thirds. In a counterfactual simulation where Gannett, the biggest newspaper conglomerate, acquires all remaining independent newspapers, local news coverage drops by 4 percent.