In the February 2009 issue of Internet Law Researcher (not online), Ken Kozlowski compiles and reviews some useful local news sources, including
News and Newspapers Online
Internet Public Library
U.S. Newspaper List
Hometown News (Koslowski omits this one..)
Newseum Front Pages
(map view is cool!)
C-Span's links to political newspaper pages and independent political websites in 50 states.
Google News (enter zipcode in "local news" window)
For locating newsreaders, see Feed Readers and NewsOnFeeds
For newsfeeds in particular, see Yahoo Syndic8, and Moreover.