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California Governor Candidate Proposes Unlimited Film and TV Subsidies

PoliticsBusiness4/30/2026
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Steve Hilton, a Republican candidate for California governor, has proposed removing the state's $750 million cap on film and TV production subsidies. The plan, which includes expanding the types of costs eligible for rebates, aims to compete with states like Georgia. Hilton is currently the leading Republican in the polls.

Facts First

  • Steve Hilton proposes an unlimited state subsidy for film and TV production, removing the current $750 million cap.
  • The plan includes a 60% combined state and federal rebate and would cover above-the-line salaries for actors and directors.
  • Georgia is the only major production hub with an uncapped credit, which reached $1.3 billion in 2022.
  • California's production workforce is significantly larger than Georgia's, according to federal data.
  • Hilton is the leading Republican candidate and is considered a heavy favorite to reach the November runoff.

What Happened

Steve Hilton, a Republican candidate for California governor, proposed eliminating the state's $750 million cap on film and TV production subsidies. The announcement was made outside the Cinerama Dome with lieutenant governor candidate Gloria Romero. Hilton's proposal includes a combined California and federal rebate totaling 60% and would expand the current incentive to cover above-the-line salaries for actors, directors, writers, and producers. Hilton has met with the Motion Picture Association, Hollywood labor unions, and actor Jon Voight.

Why this Matters to You

If you work in California's entertainment industry, this proposal could directly affect your job security and the volume of local production work. A more competitive subsidy program might help keep film and television projects from relocating to other states, potentially preserving and creating jobs. For taxpayers, an uncapped subsidy represents a significant and open-ended financial commitment from the state, which could impact budget priorities for other services.

What's Next

Hilton's proposal enters a broader political debate, as other candidates have called for eliminating or increasing the subsidy cap. As the leading Republican, Hilton is likely to advance the issue in his campaign. The plan's feasibility and impact on the state budget will be key points of discussion as the election approaches.

Perspectives

“
Steve Hilton contends that the film and TV industry faces an 'emergency' caused by 'benign neglect' from Democratic leadership in California and argues that increased subsidies are necessary to prevent jobs from moving to competing states.
“
Tom Steyer's Spokesperson asserts that Hilton would facilitate 'mega-mergers' favored by billionaires and opposes the Paramount-Warner Bros. merger due to its potential to eliminate thousands of jobs.