California has awarded a growing share of its film production incentive to animated features, with the state announcing on Tuesday that $71 million would go to four animated films. The move matters because it shows how animation is increasingly benefiting from a programme historically geared towards live-action, following the state's decision to expand its annual incentive to $750 million in 2025 and open it up to animated films and television for the first time.

The animated projects — including "Donkey," a "Shrek" spin-off receiving $19.2 million, and Disney's "Hexed" at $18.5 million, alongside untitled features from DreamWorks and Pixar — account for 59% of the $122 million awarded to major studios in this round. Two live-action films made up the rest, while a further $65 million went to independent films, including Ben Affleck's "Gingerbread Men." Because animation was not given its own funding "bucket," it competes directly with live-action productions. Notably, animation faces no principal-photography eligibility rule, meaning the state may in some cases end up subsidising work that is already largely complete, as appears likely with "Hexed," due in cinemas in November.