Newsom Proposes $7.5B Federal Film Tax Credit with Trump Collaboration

California Governor Gavin Newsom has offered to collaborate with President Donald Trump to create a federal film tax credit program worth at least $7.5 billion, aiming to boost domestic film production and counter Trump's proposed 100% tariffs on foreign-made films. Newsom’s proposal, modeled after California’s own successful tax incentive program, would be the largest government tax initiative for the film industry in U.S. history and the first of its kind at the federal level. The move comes amid escalating tariffs from the Trump administration that have disrupted various industries, and after Trump labeled foreign films a national security threat and blamed Newsom for Hollywood’s decline. Industry experts remain skeptical about the plan’s chances, noting political divisions and the potential reluctance of Trump to be seen subsidizing California’s entertainment sector. The White House has not commented on the proposal, and insiders question how tariffs or such federal credits would be structured or enforced. Newsom's surprising outreach follows recent legal disputes with the Trump administration over tariffs, highlighting the complex interplay between economic policy and cultural industry interests.