Finding Common Ground: How Left and Right Unite to Support the U.S. Entertainment Industry

Three years after the dual writers and actors strikes, the landscape for film and television workers remains challenging.

Hollywood labor unions, after adopting the mantra “survive till ’25” to signal hope, now find themselves running out of optimistic phrases. The Writers Guild of America and SAG-AFTRA recently secured expedited contracts with major studios to avert a potential funding crisis for health plans, agreeing to extend healthcare support for an additional year. The Directors Guild of America is also expected to focus on healthcare improvements as a response to the global contraction of production that has adversely affected employment levels.

Watch on Deadline

This situation appears to have broad bipartisan appeal, as it has been largely framed as a necessity for safeguarding American jobs.

So, why is progress stalling?

Behind the scenes, key stakeholders from government, labor, and major studios are exploring ways for the federal government to address the decline in domestic production.

Senator Adam Schiff and Representative Laura Friedman are spearheading efforts in Congress to build support for a federal film tax incentive, which would complement state benefits. Although the bill has yet to be formally introduced, both legislators emphasize the importance of protecting American workers, especially in light of the recent sale of Warner Bros. Discovery.

Film crews working on a studio shoot in downtown LA.
David McNew/Getty Images

MPA chief Charlie Rivkin acknowledged the collective efforts during a speech at CinemaCon in April. “We’re at the center of it all—together with studios, unions, guilds, producers, President Trump’s Hollywood Ambassadors, and more—engaging the White House and both parties in Congress on what would be a true game-changer: a federal film tax incentive,” he stated. “We are fighting daily to reach that goal. And we will keep fighting to make America a more competitive place to make movies,” he continued.

Despite seeming like a straightforward issue for bipartisan support, it remains a complex topic for voters outside of districts reliant on film production. Many lawmakers may hesitate to address the issue until after the November midterm elections. Should the tax incentive be introduced in this legislative session, it is likely to happen during a lame duck phase.

California experienced a glimpse of the challenges surrounding federal film tax incentive funding last year, when Governor Gavin Newsom led efforts to revise the Film & TV Tax Credit Program. State officials heard extensive testimony from local production workers grappling with reduced demand, yet expressed concerns that the revised bill might be viewed as a bailout for Hollywood elites. Nevertheless, the legislation that passed significantly increased funding for eligible projects to $750 million annually.

The initial effects of this enhanced program, known as Program 4.0, were delayed until earlier this year due to built-in grace periods for approved productions. As of January, over 100 productions, including Michael Mann’s Heat 2 and Season 2 of Apple TV’s The Studio, have received credits under the new program.

Although the cash infusion is beneficial, the revamped program has broadened the eligibility criteria. Major studio executives assert that the support is insufficient to significantly encourage productions to return to California.

George Cheeks, chair of TV Media at Skydance-owned Paramount, remarked, “We love shooting here. We want to shoot here as much as possible, but we do have a financial model that we have to hit. So we have to continue to press for a federal tax credit as well, and to press for even greater improvements on the California credit.”

Cheeks further highlights that including above-the-line costs for reimbursement would be a critical step in revitalizing production in the area, a sentiment echoed in ongoing efforts to address gaps in post-production and commercial coverage.

Rebecca Rhine, president of the Entertainment Union Coalition and executive director of the Directors Guild of America Western, noted, “Although the 2025 bill was crucial, we never thought that was the destination. We always knew that there was more work to be done.” The Coalition, comprising various labor organizations, recently engaged with gubernatorial candidates in California to establish early relationships with Newsom’s successor.

Rhine stated, “The person that is elected will absolutely hear from us again because our anticipation is that we will partner with the next governor to take the next step.” This partnership aims not only to enhance the California program further but also to shape discussions on the industry’s overall health.

“I think that it just makes sense for working people to have a direct conversation with elected leaders, and it doesn’t happen enough,” Rhine emphasized.

The future remains uncertain regarding whether incentives alone can reverse or even slow down years of production migration. All regions are competing for a share of a diminishing pool, particularly as high-budget television production continues to decline globally.

States like Georgia, which benefits from an uncapped incentive program and is witnessing a production rebound, could find that federal support enhances their competitive edge against international incentives. Texas, eager to attract state-specific projects from nearby competitors, may also gain from such boosts. In contrast, California, which has lost an estimated 51,000 film and television jobs over the past three years, may require more than just financial support to address its industry struggles.

According to FilmLA, overall shoot days in Los Angeles decreased by 16.1% in 2025. Cale Thomas, a makeup artist and co-chair of the LA political and legislative subcommittee for IATSE Local 706, remarked, “When I sat down with [local leaders] a year ago, this community, not the industry, was code blue on the table. We’re now in the ICU on life support.”

Read the digital edition of Deadline’s Disruptors/Cannes magazine here.

Recent production challenges, such as those encountered during the filming of Baywatch, illustrate the obstacles facing filmmakers. The project faced permitting and regulatory issues in Venice Beach that could have delayed production significantly without local support.

Producers might view such incidents as cautionary tales, ultimately deciding that, despite potential incentives, shooting on location in Los Angeles may not be worthwhile.

Thomas, involved in the Stay in LA movement, has sought to drive reform at the city level. The LA City Council has eased certain production regulations, but he asserts that unnecessary obstacles still prevent mid-tier projects from succeeding in a market that once thrived on them.