Are community (or "local") matches eligible to be matched by NewsMatch?

No, they are not.

When reporting donations, gifts may either be counted towards your NewsMatch dollar-for-dollar match or as community (or “local”) match funds, but not both. For example, if a donor contributes $500 to match donations you receive, their gift would be considered a “community match” and could not be reported as a gift to be matched by NewsMatch.