General

Gavin Newsom’s Hollywood Bailout

Source: Daily Signal July 18, 2026 at 5:00 PM (1 day ago) California Governor Race

Gov. Gavin Newsom championed a record $750 million annual California Hollywood tax credit expansion, but his own budget proposal subsequently undermined the program, creating a political crisis that Sacramento lawmakers are now working to resolve.

Key Points

  • Newsom expanded the Hollywood tax credit to $750 million annually, marking a record high for the program
  • The governor's budget proposal contradicted this expansion by effectively limiting the program's funding
  • Over three dozen California lawmakers, including senior Democrats, are involved in efforts to fix the budgetary inconsistency