California Is Officially Paying Disney to Make Its Most Controversial New Movie

Disney Animation is preparing to release its next original feature, but this isn’t the film most people have been talking about in 2026.

While sequels and established franchises continue dominating headlines, Hexed has quietly moved through production with relatively little public attention. That makes one recent announcement all the more surprising. Before Disney has even launched its full marketing campaign, the State of California has decided to invest in the project.

It’s an interesting development for a movie that has already sparked debate online months before its theatrical debut.

California Backs Disney’s Latest Animated Film

Disney’s Hexed is among the latest productions approved for California’s expanded Film & Television Tax Credit Program.

The program recently underwent a significant expansion, increasing its annual funding cap from $330 million to $750 million while also allowing animated productions to qualify for incentives for the first time. That change opened the door for Disney Animation, Pixar, and DreamWorks Animation to receive support for future projects produced in California.

Along with Hexed, DreamWorks’ Donkey and an untitled Pixar film were also selected.

The goal is straightforward: encourage studios to keep production work in California instead of shifting animation work elsewhere.

Disney Entertainment Studios Chairman Alan Bergman praised the expanded program, emphasizing the company’s long history in California and thanking state leaders for strengthening opportunities to keep productions closer to home.

Why Hexed Has Been Generating Discussion

Unlike many Disney Animation films, Hexed has entered the conversation with a bit more baggage.

The movie follows Billie, a teenage girl who discovers magical abilities that transport her into a hidden world of witches called Hexe. Alongside her mother, Alice, she uncovers family secrets that could reshape that magical society forever.

Fantasy stories centered around witches are hardly new for Disney or Hollywood. However, witchcraft remains a controversial subject for some families and religious communities, particularly because Disney Animation primarily targets children and family audiences. That alone has made Hexed one of the studio’s more closely watched original concepts.

The conversation didn’t stop there.

Early concept artwork suggested a bold painterly visual style that excited animation fans. When Disney later unveiled footage from the finished film, many viewers were surprised to see a more traditional CGI presentation instead.

Others also focused on reported story changes during development, creating additional online discussion months ahead of release.

Not everyone views those changes negatively, but they have helped make Hexed one of Disney Animation’s most talked-about original films despite relatively little marketing.

First trailer for Disney’s new animated film ‘HEXED’.

The film follows a girl who discovers her magical abilities & sets out on an adventure into a magical realm.

In theaters on November 25. pic.twitter.com/M1c5IDveuY

— DiscussingFilm (@DiscussingFilm) June 16, 2026

Disney Still Has Time to Change the Narrative

One of the biggest questions surrounding Hexed has nothing to do with the story itself.

It’s awareness.

Outside dedicated Disney fans and animation enthusiasts, many moviegoers simply don’t appear to know the film exists yet. Disney has released promotional material, including a teaser trailer, but the company has not yet rolled out the kind of extensive advertising campaign typically associated with one of its Thanksgiving releases.

That makes forecasting the box office difficult.

Based strictly on current awareness levels, Hexed appears positioned for a relatively modest opening compared to some recent Disney Animation releases. Of course, that could change dramatically once Disney begins promoting the film across television, streaming, social media, and its theme parks.

Thanksgiving has historically been one of Disney’s strongest release windows, and the studio still has plenty of time to introduce audiences to Billie and the magical world of Hexe.

For now, though, one thing is certain.

California has already placed its bet on Disney’s newest original animated adventure.