Google News is a great source for news, but it tends to highlight larger news sources. Google however recognises that sometimes the news is brought to broader attention by local news sites, and they’re starting to highlight that with a ‘Local Source’ tag on news stories.
The importance of a local news source is highlighted by Google in their post announcing the new tag, with Google saying:
The local source tag will be added automatically based on where that source has written about news previously. The local source tag is going live on all Google News platforms from today, including the Web and on mobile on the News & Weather app on Android and iOS