Just found out about this on diglet.. Launched in April, The National Digital Newspaper Program (NDNP) is a joint effort of the Library of Congress and the National Endowment of the Humanities to create a comprehensive web archive of the nation’s public domain newspapers.

Ultimately, over a period of approximately 20 years, NDNP will create a national, digital resource of historically significant newspapers from all the states and U.S. territories published between 1836 and 1922. This searchable database will be permanently maintained at the Library of Congress (LC) and be freely accessible via the Internet.

(A similar project is getting underway in France.)
It’s frustrating that this online collection will stop at 1922. Ordinary libraries maintain up-to-date periodical archives and make them available to anyone if they’re willing to make the trip. But if they put those collections on the web, they’ll be sued. Archives are one of the few ways newspapers have figured out to make money on the web, so they’re not about to let libraries put their microfilm and periodical reading rooms online. The paradigm has flipped.. in print, you pay for the current day’s edition, but the following day it ends up in the trash, or wrapping a fish. The passage of 24 hours makes it worthless. On the web, most news is free. It’s the fish wrap that costs you.
The web has utterly changed what things are worth. For most people, when a news site asks them to pay, they high tail it out of there and never look back. Even being asked to register is enough to deter many readers. But come September, the New York Times will start charging a $50 annual fee for what it considers its most unique commodities – editorials, op-eds, and selected other features. Is a full subscription site not far off? With their prestige and vast readership, the Times might be able to pull it off. But smaller papers are afraid to start charging, even as they watch their print circulation numbers plummet. If one paper puts up a tollbooth, they instantly become irrelevant to millions of readers. There will always be a public highway somewhere nearby.
A friend at the Columbia School of Journalism told me that the only way newspapers can be profitable on the web is if they all join together in some sort of league and charge bulk subscription fees for universal access. If there’s a wholesale move to the pay model, then readers will have no choice but to shell out. It will be like paying for cable service, where each newspaper is a separate channel. The only time you register is when you pay the initial fee. From then on, it’s clear sailing.
It’s a compelling idea, but could just be collective suicide for the newspapers. There will always be free news on offer somewhere. Indian and Chinese wire services might claim the market while the prestigious western press withers away. Or people will turn to state-funded media like the BBC or Xinhua. Then again, people might be willing to pay if it means unfettered access to high quality, independent journalism. And with newspapers finally making money on web subscriptions, maybe they’d start loosening up about their archives.