Newsom's office is framing this as an unqualified economic success—jobs created, productions kept in-state, and California reaffirming its status as the entertainment capital of the world. The governor wants voters to see government investment paying dividends for workers across the industry.
Insiders say Newsom is playing a long game here. With 2028 whispers growing louder, he's carefully curating relationships with Hollywood's elite while pointing to tangible wins for his political resume. Some studios reportedly pushed hard for these incentives after years of complaining Georgia's tax breaks were too good to pass up.
The California film/TV tax credit program was expanded to $750 million on its first anniversary in July 2026. Projects receiving latest round incentives include Eddie Murphy's 'Donkey' (Shrek prequel), Disney productions, an untitled Pixar project, and films starring Ben Affleck. Deadline reported these developments on July 7, 2026.
Newsom is clearly using Hollywood as a stepping stone for higher office, but the real question is whether California's massive tax incentive spending actually benefits everyday workers or just pads studio profits. Either way, this governor knows how to throw a press conference.
Gavin Newsom is not subtle about his ambitions. The California governor took a victory lap Monday on the one-year anniversary of the state's expanded film and television tax credit program—and the timing couldn't be more calculated. With speculation intensifying about a potential 2028 presidential run, Newsom paraded massive Hollywood productions as proof that his $750 million bet on the entertainment industry is paying off.
Disney, an untitled Pixar project, Eddie Murphy's long-gestating 'Donkey' prequel (yes, that's really happening), and Ben Affleck-fronted films all received slices of California's incentive pie in the latest funding round. But let's call this what it really is: political theater dressed up as economic policy. Newsom has been systematically positioning himself as Hollywood's best friend, cultivating relationships with studio heads and A-list talent who could prove invaluable if he launches a national campaign.
The governor's office has been relentless in promoting these tax credit announcements, complete with factory visits, crew meet-and-greets, and carefully staged photo ops designed to show him fighting for working-class entertainment jobs. The program's expansion to $750 million annually represents a significant escalation from previous levels—a move that studios reportedly lobbied hard for after grumbling that competitor states like Georgia and New York were offering more attractive packages. Whether California's version actually delivers better outcomes for taxpayers remains hotly debated.
Critics point out that tax incentive programs often become corporate welfare schemes where studios pocket the savings while production budgets balloon elsewhere. What's particularly telling is who's NOT at these press conferences: rank-and-file crew members, below-the-line workers, or anyone who might ask uncomfortable questions about accountability. Instead, it's a carefully curated audience of industry executives and political staffers.
The governor's team has mastered the art of presenting Hollywood spending as populist job creation, but the math rarely works out that cleanly for regular Californians footing the bill. Disney's involvement is especially notable given the studio's recent clashes with Florida over LGBTQ+ legislation—California has positioned itself as the anti-DeSantis destination, and this latest round of incentives reinforces that narrative. Meanwhile, Eddie Murphy returning to the Shrek universe with 'Donkey' suggests studios are banking heavily on nostalgia-driven projects that carry lower creative risk than original content.
And Ben Affleck continues his quiet career renaissance behind the camera after his directorial success with 'Argo' and 'Live by Night.' Whether you view this as savvy economic development or cynical political positioning probably depends on how much you trust Newsom's long-term intentions. But one thing is certain: the governor has no intention of letting California become second place to Atlanta when it comes to film production. And if that happens to boost his national profile in the process?
Well, that's just a bonus. The tea-rex take: Watch closely how these productions actually impact employment numbers versus studio profits. If history is any guide, the latter will look considerably better than the former—and Newsom's 2028 campaign surrogates will conveniently forget that detail when citing 'success stories.'
