Unions Unite Behind Federal Incentive Plan
Three of Southern California’s most influential entertainment unions have thrown their weight behind President Donald Trump’s call for a federal production incentive, signalling a rare moment of cross‑union alignment on a policy that could reshape the nation’s film and television landscape. SAG‑AFTRA, the International Alliance of Theatrical Stage Employees (IATSE) and Teamsters Local 399 issued joint statements praising the proposal, arguing that it addresses a long‑standing decline in domestic productions and the thousands of jobs that have migrated overseas.
“President Trump’s vocal and determined leadership in calling for federal production incentives is exactly what the entertainment industry needs,” said SAG‑AFTRA President Sean Astin and National Executive Director Duncan Crabtree‑Ireland in a joint statement. “Production is the lifeblood of our industry and the communities that support it,” Astin added, echoing the sentiment that a federal boost could reverse the tide.
IATSE’s response was equally enthusiastic. “IATSE welcomes President Donald Trump’s public endorsement of a federal film and television production incentive and is encouraged to see growing support for a policy the union has championed for years,” the union said. The organisation has been working with actor Jon Voight, whom Trump appointed as a special ambassador to Hollywood, alongside other industry figures and a bipartisan group of lawmakers to draft potential legislation.
Teamsters Local 399, which represents roughly 6,500 motion‑picture workers across California and New Mexico, also welcomed the announcement. “We applaud this step in the right direction,” the union declared, noting its ongoing collaboration with an industry coalition to shape a federal incentive framework.
California’s Race to Retain Production
California has been scrambling to stem a prolonged exodus of film and television projects, a decline accelerated by the COVID‑19 pandemic, the 2023 Hollywood strikes and the devastating 2025 Los Angeles wildfires. In response, the state increased annual funding for its Film and Television Tax Credit Programme from $330 million to $750 million beginning in the 2025‑26 fiscal year. Despite this boost, the state faces intensifying competition from other U.S. jurisdictions and foreign territories that offer generous incentives and lower production costs.
Los Angeles City Councilmember Adrin Nazarian, who chairs the council’s Ad Hoc Committee on Film, Entertainment and Creative Industry, stressed that a federal incentive was essential for the U.S. to remain competitive on the global stage. “This is not a partisan political issue,” he said. “It’s about doing what’s right for the thousands of below‑the‑line production workers who build the sets, haul equipment, and do a hundred other behind‑the‑scenes jobs.”
The Motion Picture Association also endorsed Trump’s proposal. Chairman and CEO Charles Rivkin argued that a federal incentive could “bring production and jobs to communities across all 50 states,” highlighting the potential for a more geographically balanced entertainment industry.
Bipartisan Momentum in Congress
While Trump’s initiative originates from the White House, the push for federal action has gained traction on Capitol Hill. Democratic Senator Adam Schiff of California called on Congress to consider and pass a federal film tax incentive, asserting that it could help restore jobs lost overseas. The senator’s support suggests that the issue may transcend traditional party lines, though the specifics of any legislation remain under discussion.
Trump’s outreach to congressional leaders indicates that bipartisan talks are being arranged, though he has yet to provide detailed figures on the size or structure of the proposed incentive. The absence of concrete parameters has left industry observers both hopeful and cautious, eager to see how the policy will be shaped and funded.
The president’s earlier foray into the sector in 2025, when he floated a 100 % tariff on movies produced outside the United States, raised questions about enforceability. That proposal contrasted sharply with the current incentive‑focused approach, which appears designed to attract rather than penalise.
Industry Outlook and Potential Impact
If enacted, a federal production incentive could revitalise a sector that has seen a steady decline in domestic output over the past decade. Proponents argue that it would not only create jobs but also stimulate local economies, especially in communities that have historically relied on film and television production for employment and tax revenue.
Opponents, however, caution that incentives could lead to wasteful spending and may not guarantee long‑term stability for the industry. They also point to the risk of a “race to the bottom,” where states and countries continually increase offers to outbid one another, potentially undermining labour standards and creative integrity.
Regardless of the eventual design, the convergence of union support, bipartisan political interest and a clear recognition of the industry’s challenges marks a pivotal moment for U.S. entertainment. The outcome will likely influence not only the flow of productions but also the broader economic landscape of regions that stand to gain or lose from the shift.
Why it Matters
The alignment of major Hollywood unions with a presidential initiative signals a rare consensus that could reshape the economic foundations of the American entertainment industry. By potentially bringing back thousands of production jobs and prompting a recalibration of incentives across states, the policy could revitalise local economies, especially in California and other regions that have suffered from years of declining film and television output. Moreover, the bipartisan nature of the proposal underscores a growing recognition that a robust domestic production sector is vital not only for cultural output but also for national economic resilience. The stakes are high: success could restore the U.S. as a global hub for storytelling, while failure might cement the industry’s continued drift overseas, further eroding American jobs and cultural influence.
