President Donald Trump recently proposed tariffs on foreign-made films, but the White House has since withdrawn the proposal. However, the cinema industry remains concerned about its potential return and the economic impact it could have on the arts. Hollywood has shown support for these tariffs, viewing them as a means to protect domestic film production. In California, Governor Gavin Newsom is addressing a $12 billion budget deficit. His proposed budget includes significant cuts, such as eliminating $11.5 million allocated to small nonprofits arts organizations through the Performing Arts Equitable Payroll Fund (PAEPF). Despite these reductions, Newsom's budget promises increased financial support for Hollywood, which is facing challenges from other states offering production incentives. Newsom's budget also proposes closing a fifth prison by October 2026 to save $150 million. This decision is part of a strategy to manage the state's financial shortfall, which Newsom attributes to economic impacts from Trump's tariff policies. Director Richard Linklater has expressed skepticism about Trump's tariff proposal, noting that the president frequently changes his mind and that film is a significant U.S. export industry.