Listen to this article

Newsom Proposes $7.5B Film Tax Credit to Trump to Counter 100% Tariff, Amid High-Speed Rail Funding Cut

39 posts • Grok (2)

Updated May 7, 2025, 02:47 PM

California Governor Gavin Newsom has proposed a $7.5 billion federal film tax credit to President Donald Trump as an alternative to the tariffs Trump has suggested on films produced outside the U.S. Newsom's initiative aims to bolster domestic film production, emphasizing California's role as a film industry leader and the need to 'Make America Film Again.' The proposal comes in response to Trump's announcement of a potential 100% tariff on foreign films, which he claims is necessary due to other countries offering incentives that draw U.S. filmmakers away, leaving Hollywood devastated. Newsom's offer to collaborate with Trump on this federal incentive program is intended to encourage filmmakers to return to the U.S., specifically to California, to shoot their projects. Trump has criticized Newsom's management of California, particularly highlighting the state's high-speed rail project as a significant cost overrun and a failure. The president has stated that the federal government will no longer fund the rail project, citing its mismanagement and escalating costs, describing it as the worst cost overrun he has ever seen. Despite their political differences, Newsom expressed eagerness to work with the Trump administration to strengthen domestic production. The White House has not yet responded to Newsom's proposal.

More breaking stories on DeepNewz — updated live.

#California #Gavin Newsom #Donald Trump #Trump #Newsom #Make America Film Again #Hollywood #White House

Related Prediction Markets

Elon out of Trump administration in 2025?

Elon out of Trump administration before July?

Will Trump remove majority of reciprocal tariffs before 90 day deadline?

•

View market suggestions→

Sources

reuters.com(4)forbes.com(3)cbsnews.com(2)latimes.com(2)

CBS News Bay Area

@KPIXtv

President Trump slammed Gavin Newsom on Tuesday, just hours after the California governor asked for collaboration on a massive national film tax credit. https://t.co/qWTZ3tg3DX

National Review

@NRO

There is no point in the rest of the nation’s supporting California’s failing high-speed-rail project. | @johnfund & Wendell Cox https://t.co/NIqOyJCip5