A statement said the government would no longer require journalists to identify sources or share material intended for use in news activities.
The new policy is presented after revelations that the previous government under Donald Trump secretly obtained telephone logs from journalists at, among others, the New York Times.
According to the Biden Administration, the new direction will safeguard free and independent pressure because it is a "necessary part of a functioning democracy".
The policy means that the government does not intend to use the legal process required to get journalists to reveal their sources.
Exceptions can be made if it is a journalist who is himself the subject of an investigation, is suspected of being a foreign agent or of being a member of a terrorist group.