Just when Americans need it most, the U.S. newspaper industry is facing an unprecedented new challenge. Readers desperate for information are more reliant than ever on local media as the coronavirus spreads across the U.S. They want to know about cases in their area, where testing centers are, what the economic impact is. Papers say online traffic and subscriptions have risen — the latter even when they’ve lowered paywalls for pandemic-related stories. But newspapers and other publications are under pressure as advertising craters. They are cutting jobs, staff hours and pay, dropping print editions — and in some cases shutting down entirely. Circulation and web traffic are up at the…