Should the government lend a paycheck to newspapers?

In January, nytimes.com published an opinion piece on the financial state of newspapers in the United States. The writers, David Swensen and Michael Schmidt, wrote they believe that the government should endow newspapers and take away their need to rely on businesses and corporations for ad revenues. While this theory seems very idealistic, it is at the same time unrealistic. Swensen and Schmidt pointed out that of course newspapers would have to remain objective. I just don't see how that could be possible.

"One constraint on an endowed institution is the prohibition in the same law against trying to “influence legislation” or “participate in any campaign activity for or against political candidates.” While endowed newspapers would need to refrain from endorsing candidates for public office, they would still be free to participate forcefully in the debate over issues of public importance. The loss of endorsements seems minor in the context of the opinion-heavy Web."

Taking out the business model and allowing the government to fund newspapers would bring government and media too close together for my comfort. What if our government does some things that the public does not agree with? How is the editor of the newspaper supposed to report badly about the government while receiving funding from them at the same time?