The digital era has profoundly disrupted traditional local news outlets, leading to widespread closures, the formation of “news deserts,” and concerns about diminished civic engagement and democratic health. This paper examines the transformation of local journalism amidst these challenges, focusing on the emergence of local news platforms as multifaceted community hubs. Drawing on theoretical frameworks including media localism, community-centered journalism, and media ecosystem theory, it analyzes the critical role of community engagement in fostering trust and sustainability. We detail the significant economic, technological, and audiencerelated challenges confronting local news, alongside emerging opportunities such as diversified revenue streams (including membership, philanthropy, and policy support) and innovative, engagement-focused operational models. Through case studies of successful initiatives (“bright spots”), it illustrates how local news organizations are redefining their roles beyond mere information dissemination to become conveners, facilitators, and integral community institutions. Finally, we explore policy implications and future directions, arguing that a combination of grassroots innovation, strategic funding, supportive policies, and a conceptual shift towards viewing local news as a public good is necessary for its revitalization. The central thesis posits that by embracing a community-centric approach and functioning as dynamic hubs, local news platforms can achieve resilience and renew their vital role in contemporary society.