Newsom Proposes $7.5B Federal Film Tax Credit

California Governor Gavin Newsom has proposed a $7.5 billion federal film tax credit as an alternative to President Donald Trump's suggested 100% tariffs on foreign-made movies, aiming to boost domestic film production and jobs. Newsom is advocating for bipartisan collaboration, modeling the federal incentive after California's state program. This would be the first federal-level film industry incentive in U.S. history. Trump contends that foreign film production is a national security threat and blames Hollywood's decline on overseas incentives, while lawmakers such as Sen. Adam Schiff and industry experts warn that tariffs could have unintended economic consequences. The White House has stated that no final decisions have been made regarding either proposal, and details remain unclear. Observers remain skeptical about the prospects of bipartisan agreement given current political divisions and the broader impact of tariffs.