California Governor Gavin Newsom has announced a $100 million investment to create thousands of jobs in the state.
The investment will go to nine companies across the state, which is expected to create 2,752 new jobs.
The companies, which work in areas such as aerospace, electronics, clean technology, and food production, will each receive tax credits, which the Governor’s office says will allow them to create jobs that pay an average annual salary of $139,000, above the state average.
Why It Matters
The investment marks a significant attempt by California to boost job creation and strengthen key industries such as clean technology and aerospace.
It also reflects California’s ongoing efforts to retain and expand businesses amid concerns about the state’s business climate.
What To Know
The latest round of credits will support projects across several regions, according to the Governor’s office.
Atomic Machines plans to expand its micro-electromechanical systems operations in Santa Clara, Emeryville and the East Bay, while Bright Machines is growing its data-center infrastructure manufacturing line in Fremont. Hadrian Automation will scale up its aerospace component manufacturing in Torrance and Northern California, and True Anomaly is building out its satellite manufacturing capacity in Long Beach.
State officials framed the investments as central to the California Jobs First Economic Blueprint, an initiative Newsom unveiled earlier this year to strengthen regional economies. Manufacturing produced more than $400 billion in output in California last year and employs over 1.2 million workers, according to the Governor’s office.
But it comes as California has recently had one of the worst unemployment rates in the country. In August 2025, the seasonally adjusted unemployment rate in California was 5.5 percent, the highest of any U.S. state at that time.
State officials blame President Donald Trump for increasing unemployment.
“Donald Trump turned a booming national economy into to a stagnant one in record time. He knows this, which is why he fired the head of the Bureau of Labor Statistics. Trump can try to hide the numbers, but American families are feeling the impacts of his failure,” Tara Gallegos, a spokesperson for California Governor Gavin Newsom’s office, told Newsweek in August.
She added: “California is clear eyed about how Trump’s failed policies are impacting the job market in California and nationally. His war on affordability and small businesses through his chaotic tariff schemes and his job- and economy-killing immigration raids are having real impacts. We will continue to fight back against Trump’s incompetence, so that California can maintain its position as the 4th largest economy in the world, and protect our families from Trump’s failed Presidency.”
Longer-term data suggests that while California’s job market has rebounded since the worst of the pandemic, the pace of growth has slowed. One assessment found that total non-farm payroll employment in the state grew by only around 0.4 percent between August 2024 and August 2025—below the national average.
What People Are Saying
Governor Newsom said: “California’s global leadership in innovation and manufacturing continues to set us apart. Through programs such as CalCompetes, we’re attracting companies and helping them grow successfully in our state, creating good-paying jobs and opportunities for Californians.”
Dee Dee Myers, Senior Advisor to Governor Newsom and Director of GO-Biz, said: “These companies represent the next generation of California innovation. From advanced manufacturing to clean technology, these investments strengthen the industries that define our economy and accelerate inclusive, economic growth across the state.”
What Happens Next
According to the Governor’s office, this latest development will bring in $370 million in private investment.