Newsom Proposes $7.5B Federal Film Incentive, Challenges Trump on Entertainment Industry Policy

California Governor Gavin Newsom has proposed a $7.5 billion federal tax incentive program for film and television production, challenging former President Donald Trump's recent suggestion to impose tariffs on movies produced in foreign countries.

The proposal, which Newsom framed as a way to "Make America Film Again," aims to counter "runaway production" and boost domestic entertainment industry growth. The California governor's plan builds upon existing state-level incentives while taking a different approach from Trump's suggested 100% tariffs on foreign films.

"Instead of imposing tariffs that could hurt the industry, let's make production more affordable here at home," Newsom suggested in his proposal, which comes as competition from countries like Canada and the United Kingdom continues to draw production away from traditional U.S. entertainment hubs.

Despite their differing approaches, Newsom has signaled willingness to work with the Trump administration on implementing the tax credit plan, suggesting a potential area of bipartisan cooperation on economic policy.

The entertainment industry initiative has drawn attention from other political figures, including Rep. Adam Schiff, and represents a significant potential investment in a crucial California industry.