In a rare display of bipartisan consensus, President Donald Trump and Senator Adam Schiff (D-CA) have publicly aligned on the need for a federal film production incentive. This unexpected agreement emerges amidst a significant downturn in the American entertainment sector, characterized by substantial job losses and intense global competition for film and television projects. The confluence of these two historically adversarial political figures on a shared policy objective highlights the perceived urgency of the issue for the nation’s creative industries.
"I am in strong agreement with the President... Let’s work together — Republicans and Democrats — to get this done, and bring the movie magic back to America." Senator Adam Schiff, (D-CA)
The backdrop to this unusual alliance is a stark economic reality facing the motion picture and video industries. According to figures from the Bureau of Labor Statistics, the sector has experienced a loss of approximately 49,000 jobs since 2022. This decline is attributed to a combination of pandemic-era disruptions and the industry's ongoing pivot towards streaming services, which has altered traditional production models and employment landscapes.
President Trump has been a vocal proponent of federal intervention to revitalize the industry. His public push for a federal production incentive gained momentum following a meeting with actor Jon Voight, who serves as a special ambassador to Hollywood within the administration. Subsequent to this discussion, President Trump took to social media to articulate his position, stating, "Congress should approve, immediately, a Federal Production Incentive to create Entertainment Jobs in America." He further characterized the plan as something that "can be done quickly, accurately, efficiently and, importantly, will benefit ALL of America." The President's ambition for the initiative is to "Make our Movie and Television Production Business GREAT AGAIN, perhaps GREATER THAN EVER BEFORE!"
Adding a surprising dimension to this policy debate, Senator Adam Schiff, a prominent Democratic voice and a key figure in President Trump's first impeachment proceedings, has thrown his support behind the proposal. Writing on the social media platform X, Senator Schiff declared his alignment with the President, stating, “I am in strong agreement with the President.” He then issued a direct call for legislative action, urging, “Congress should immediately take up and pass a federal film tax incentive to bring back these good-paying jobs that we’ve lost to other countries.” Beyond a simple endorsement, Senator Schiff extended a hand across the political divide, proposing, “Let’s work together — Republicans and Democrats — to get this done, and bring the movie magic back to America.” This public statement marks a notable departure from the long-standing adversarial relationship between the two men.
The call for federal action comes as U.S. states and international competitors aggressively vie for film and television productions through robust incentive programs. California, historically the epicenter of the American film industry, has attempted to counter this trend by more than doubling its Film & Television Tax Credit Program, pushing available incentives to $750 million. However, even with this expansion, California finds itself outpaced by other states. Georgia, for instance, now offers over $1 billion in annual production tax incentives, while New York provides close to $800 million. Beyond U.S. borders, countries like Canada and the United Kingdom have successfully lured American productions overseas with their own attractive incentive schemes, further exacerbating the outflow of jobs and production dollars from the United States. President Trump has directly addressed the impact on California, noting, “There is no incentive to be there, and it is hurting California very badly.”
Despite the rare bipartisan agreement, the legislative path for a federal production incentive remains challenging. Congress is slated for a compressed September session, with lawmakers increasingly focused on the approaching midterm elections. This narrow window for new legislation presents a significant obstacle to advancing such a proposal. Nevertheless, both President Trump and Senator Schiff have underscored the urgency of the situation, pointing to the ongoing trend of production companies bypassing traditional Hollywood hubs in favor of more cost-effective locations, both domestically and internationally. The unexpected alignment between these two political rivals underscores the perceived severity of the economic issues facing the American entertainment industry and the shared desire to retain and create jobs within the sector.
