Gov. Gavin Newsom (D-CA) spent the last week blaming President Donald Trump for a $12 billion budget deficit that led to tough cuts in the state’s healthcare services, but he had no qualms about carving out more than $750 million a year in tax credits for Hollywood.

The money is for the expansion of the state’s investment in film and TV tax credits, which were first instituted in 2009 by then-Gov. Arnold Schwarzenegger to boost the industry. California’s tax credit was created in response to other states luring production companies away. As of 2024, 37 states had similar incentives. New York raised its incentives to $800 million a year from $700 million last week, while Georgia has an unlimited tax credit, which it proudly touts.