Governor Gavin Newsom unveils an expansion of California’s film and TV tax credit program in October 2024.
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California
California Is Doubling Its Film Incentive, but It May Be Too Late to Stop Runaway Production
“Mad Men” was set in 1960s New York, but it was mostly filmed at a studio just west of downtown Los Angeles. Sienna DeGovia was one of hundreds of people who worked on the show. Someone needed to re-create the food of that era, like savory Jell-Os and the carrots cut into one-inch cubes that used to be served on airplanes, and that’s what she does — she’s a food stylist. She started as an assistant 25 years ago and after learning the craft, became a lead stylist.
Los Angeles is full of weird jobs like that — or at least it used to be. But content production peaked in 2022, and the world’s entertainment capital has since been battered by a global contraction.
“The beginning of 2024, everything fell off a cliff,” DeGovia says. “I called all my old mentors and begged to be taken on as an assistant. I never had to do that in 20 years.”
The lack of work in Hollywood has renewed age-old calls for government intervention. Her father, Jack DeGovia, was a production designer who worked on “Die Hard” and “Speed.” In response to a downturn in 1999, he organized the Film and Television Action Committee, which took aim at “runaway production,” particularly the then-new phenomenon of shooting American films in Canada because it was cheaper.
“They were taking the bread out of our mouths and attacking our families,” says DeGovia, now 84. “They were making believe they were America. They’re not; they’re Canada. We were willing to play hardball with these guys.”
DeGovia led rallies in L.A. and Sacramento, where crews chanted “Film American!” and demanded a state tax incentive to match Canadian subsidies. That effort fizzled out. But a generation later, California has a production tax credit and is poised to double it in response to foreign incentives.
“We have to be more competitive,” Gov. Gavin Newsom said on May 14, noting that the business is on “life support.”
That may not be enough. Doubling the program should generate 4,000 to 5,000 jobs, according to state estimates. But in the past two years, California has lost 40,000 production jobs, according to the Bureau of Labor Statistics.
“Trying to be competitive, or close to competitive, is going to require not only a state effort but some sort of federal incentive,” says film producer Chris Bender, noting that at least 70 countries have a national subsidy. Jon Voight, a “special ambassador” appointed by President Trump, has pitched a national incentive as part of a plan to save Hollywood.
The industry has been dreaming about that idea for generations. Ronald Reagan backed a federal tax break to counter runaway production when he was governor of California in 1970. Twenty years before that, as president of the Screen Actors Guild, he lobbied President Truman on the issue.
“Runaway production is not new,” says Russell Hollander, national executive director of the Directors Guild of America. “What is different now is that we are experiencing a tremendous global contraction in film and television production.”
According to DGA data, every major production center — California, New York, Georgia, Canada and London — has seen a downturn in the past couple years. But it’s been more severe in the U.S. than overseas.
“Under these circumstances, every job that leaves the United States to chase foreign tax incentives takes on added significance,” Hollander says. “Recapturing that work has to become an even more important priority.”
In Canada, production subsidies are a matter of cultural sovereignty. Without them, Canadian movie theaters and TV screens would be overwhelmed by American content.
“We want to see ourselves reflected on our airwaves, as does every other country,” says Norm Bolen, former president of the Canadian Media Producers Association. Bolen is skeptical that the U.S. needs a federal subsidy. “From a Canadian perspective, that’s absurd,” he says. “Hollywood dominates everywhere. What’s the deficiency that needs to be addressed?”
He also disputes the idea that Canada offering subsidies to international producers caused a loss of U.S. jobs. “They weren’t really taking jobs away from Americans,” he says. “They were providing financial resources that allowed these productions to be made. They wouldn’t have been made at all.”
In 1986, Stephen J. Cannell was producing an L.A.-based action show for NBC called “Stingray.” Facing declining network fees, he hit on the idea of saving money by filming in Canada.
“We didn’t have much choice,” says Michael Dubelko, who was president of Cannell’s company. “We were a small company. We did it for survival.”
The company ended up in Vancouver, which had almost no production industry at the time. Cannell turned a former distillery into a TV factory, churning out “21 Jump Street,” “Wiseguy,” “The Commish” and other shows.
“We didn’t know what we were doing when we started,” Dubelko says. “It was crazy.”
In his view, filming on location in Los Angeles had simply become too expensive. Homeowners would demand $5,000 or $10,000 to rent their house for a day. Once the crew got there, a neighbor would fire up the lawnmower and demand to be paid to turn it off.
“We go to Vancouver, and they’d say, ‘Come on in and shoot for free,’” he recalls. “We weren’t being ripped off all the time.”
And with a favorable exchange rate, Dubelko estimates they saved at least $100,000 an episode — or more than $2 million a season. Of course, leaving L.A. behind created some backlash. “We took heat for it,” he says.
But soon, others followed.
Producer Stephen J. Cannell at his production offices at Paramount Studios in 1983.
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The British Columbia film industry now employs thousands of people. Dubelko remembers being in Vancouver with Cannell a few years before he died. “We were going down the street, and people were stopping us, saying, ‘Oh my God, we’re in the business because of you,’” Dubelko says. “It was not one or two. Maybe 20 people came up to us and told us how grateful they were to him. He was really the one that pushed all this stuff. He was really a visionary.”
Lately, though, Vancouver has been hit hard by the contraction. According to the local crew union, only 25% of its members are working.
“We have been dead,” says Tonya Hartz, who has worked as a location scout in Vancouver for 28 years. “Production levels have been incredibly slow in 2025.”
Hartz knows people who have lost houses and are struggling to afford groceries.
Trump’s threat to impose a 100% tariff on foreign-made films, coming on top of blanket tariffs on Canadian goods and threats of annexation, has added to the strain.
“You can imagine the panic that rippled through our membership,” says Crystal Braunwarth, business representative of IATSE Local 891 in Vancouver, who fielded at least 50 calls after Trump’s threat.
While a movie tariff would probably be unworkable, some worry that U.S. producers may nevertheless shy away from filming abroad, exacerbating the downturn.
“This is a global industry,” says Spencer Chandra Herbert, B.C.’s minister of tourism, arts, culture and sport. “Trying to shut the door on it being a global industry misunderstands how the industry works.”
Canadian-based Gary Lam, an editor whose credits include “District 9” and “Terminator: Dark Fate,” says it’s not a zero-sum situation. “If it’s slow in Hollywood, it’s slow here,” he says. “We want Hollywood to be busy. When they get so busy they have trouble finding crew, that’s when we tend to get the call.”
Several in the Vancouver industry agree that the business moves in cycles, and they expect the slow period will not last forever. Lam says it’s also up to local governments to do what they can to help. “I do think that tax breaks and government support are the way to go,” he says.
So does the B.C. government, which recently increased its production incentive. “We’ve made this a priority,” Chandra Herbert says. “We’re responding to the same thing everyone else is. The major studios have reduced how much they’re spending. It’s been very hard on our workers.”
Dubelko isn’t convinced that a U.S. incentive is a great idea. When he was making TV, there were about 50 shows on the air. They would get Nielsen reports, and they all fit on one page. Now there are 500. “All this production that currently exists couldn’t have been done in one city or one state,” he says. “The business became very mobile in the mid-’80s. It was a very natural evolution that it would start being done outside Los Angeles.”
“How do you get that business back?” he says. “I don’t know. I don’t see how that happens.”
California
First look: Space Shuttle Endeavour in ready-to-launch position at California Science Center
LOS ANGELES – This fall, space fans will get to see the Space Shuttle Endeavour like never before in its new permanent home at the California Science Center in the Exposition Park area.
What we know:
The new Samuel Oschin Air and Space Center at the California Science Center officially opens on November 13.
Also, an introductory film includes footage from Endeavour’s final launch before being retired in 2011.
“We felt from the beginning this is the most impressive way to see the space shuttle and it gives people views that almost no one ever got a chance to see,” said Jeff Rudolph, President & CEO of the California Science Center.
What they’re saying:
Since 2012, Los Angeles has been home to the Space Shuttle Endeavour. It has been on display horizontally at the California Science Center.
But the vision was always to have it on display upright.
“It’s really exciting and everyone who sees it is in awe and that’s really what we were trying to do was create that real sense of emotional high and inspire people to learn more,” said Rudolph.
This is the only display of its kind and it can’t be duplicated. The orange tank attached to the shuttle is the last mission-ready one in existence.
“I think what we’ve done is present something that is going to be a truly life-changing and transformative experience for education,” said Kenneth Phillips, Curator for Aerospace Sciences at the California Science Center.
Visitors will also be able to see inside the space craft that carried astronauts to space 25 times, including Mae Jemison, the first Black woman to go to space and now-Arizona Senator Mark Kelly.
When the exhibit opens to the public in November, visitors will be able to ride up an elevator alongside the space shuttle and view it from the top.
“That’s the view that nobody but the crew saw. That was a very special vantage point. Nobody got to do that,” said Phillips.
What’s next:
The California Science Center expects the exhibit to be popular. Tickets will go on sale well before the opening.
California
5.6 earthquake strikes near Ukiah, triggers alerts across Northern California
Redwood Valley, Calif. — A 5.6 magnitude earthquake shook Northern California on Wednesday morning, according to the U.S. Geological Survey.
The quake was centered 7 miles north of Redwood Valley in Mendocino County, north of Ukiah, and east of Highway 101. It had a depth of 5.0 miles.
A ShakeAlert notification went off on many people’s phones moments before the earthquake hit at 8:10 a.m., initially forecasted as a 6.1 magnitude quake by the U.S. Geological Survey (USGS) and downgraded moments later.
People across Northern California felt the quake. Reports came in from as far away as Eureka, Redding, Sacramento, and the Bay Area. Most people reported light to moderate rolling and shaking.
Since the initial quake, several aftershocks have hit the same area. Three smaller quakes between 2.6-2.7 magnitude were detected in the same area between 8:17 a.m. and 9:06 a.m., and are expected to continue.
So far, there have not been any reports of major damage or injuries.
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California
DOJ charges 10 Southern California defendants in largest federal healthcare fraud crackdown in US history
Laura Ingraham: Fraudsters beware!
The Department of Justice announces the largest healthcare fraud takedown in U.S. history, charging 455 defendants across 45 states. They allegedly stole $6.5 billion from Medicare and Medicaid through wound care schemes and other fraudulent claims. Some funds were used for luxury homes and vehicles like a $135,000 Maserati.
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Federal authorities on Tuesday charged 10 Southern California defendants in a series of healthcare fraud schemes, including one case involving nearly $270 million in fraudulent Medi-Cal claims and another that allegedly defrauded Medicare out of approximately $27 million.
The charges were part of the Justice Department’s broader “2026 National Health Care Fraud Takedown,” which resulted in charges against 455 defendants nationwide in schemes involving more than $6.5 billion in alleged fraud.
Acting Attorney General Todd Blanche described the operation as “the greatest combined federal and state effort in combating healthcare fraud in history.”
“Fraudsters can no longer rip off American taxpayers,” Blanche said during a news conference announcing the initiative. “If you seek to harm or cheat Americans, we will find you, seize any assets and prosecute you to the fullest extent of the law.”
FBI ADDS 2 FUGITIVES TO ‘MOST WANTED FRAUDSTERS’ LIST AMID HISTORIC $6.5B HEALTHCARE TAKEDOWN: PATEL
Acting Attorney General Todd Blanche speaks during a news conference announcing what federal officials described as the largest healthcare fraud takedown in U.S. history, resulting in charges against 455 defendants nationwide. (Ken Cedeno / AFP via Getty Images)
In the Central District of California, federal prosecutors brought criminal charges against 10 defendants accused of defrauding government-funded healthcare programs or abusing their positions as medical professionals to illegally prescribe controlled substances.
The U.S. Attorney’s Office for the Central District of California said five individuals were arrested in the greater Los Angeles area for allegedly participating in a scheme that involved submitting nearly $270 million in fraudulent claims to Medi-Cal for expensive prescription drugs.
Among those charged was Christina Mareik, 61, also known as Christina Marie Sanchez Hernandez, of Whittier.
HOSPICE FRAUD USES STOLEN IDENTITIES FOR FAKE PATIENTS
The Justice Department announced charges against 10 Southern California defendants in connection with multiple healthcare fraud schemes. (Department of Justice)
Prosecutors allege Mareik helped facilitate fraudulent prescriptions that generated nearly $270 million in claims to Medi-Cal, which ultimately paid out more than $178 million.
According to prosecutors, the claims involved expensive drugs containing low-cost generic ingredients that were either not medically necessary or were never provided to the purported recipients.
Authorities said Mareik also sent thousands of fraudulent prescriptions to a co-conspirator and caused the submission of fraudulent prescriptions under her own name.
LOS ANGELES HOSPICE FRAUD REACHES BILLIONS AS MEDICARE PROVIDERS SCAM FEDERAL SYSTEM WITH FAKE COMPANIES
Federal prosecutors allege Southern California defendants participated in schemes that defrauded Medicare and Medi-Cal of hundreds of millions of dollars. (Department of Justice)
Mareik was arrested June 17 and charged with healthcare fraud.
The charges also include a San Fernando Valley man accused of operating hospice care companies that fraudulently billed Medicare approximately $27 million, according to prosecutors.
Prosecutors also charged Oren David Shachar, 59, of Van Nuys; Abraham Shin, 66, of Corona; and Jeannie Choi, 57, of Torrance.
The three defendants face a 16-count indictment alleging they conspired to defraud Medicare out of approximately $27 million.
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The charges include conspiracy to commit healthcare fraud, healthcare fraud, aggravated identity theft, monetary transactions involving criminally derived property exceeding $10,000, and violations of the Anti-Kickback Statute.
Fox News Digital’s Alexandra Koch contributed to this report.
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