LOS ANGELES — California’s beleaguered network of small, nonprofit theaters will receive a $50 million one-time subsidy under a $262 billion California state budget agreement signed this week by Gov. Gavin Newsom.

Mr. Newsom and his fellow Democratic leaders in the legislature, negotiated the assistance as part of a sweeping 2021-22 budget, which includes billions in economic relief for residents and small businesses struggling under the weight of the pandemic. The theater subsidy came after intense lobbying from small theaters concerned about their future after a 15-month shutdown. Compounding the effects was the prospect of sharply increased labor costs for many theaters as a result of a new gig worker law that took effect in 2020.

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State Senator Susan Rubio, a Democrat pushing both measures, said she thought these efforts would help the theaters get past this difficult time.

“Small nonprofit performing arts companies have historically been undervalued and underfunded despite their contributions to the economic growth, social well-being and cultural vitality of the local communities they serve,” she said. 

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