Trump Urges Congress to Pass Federal Film and TV Tax Credit Amid Hollywood Job Losses
On Monday, August 31 2026, President Donald Trump called on Congress to approve a federal tax incentive for film and television production. In a Truth Social post he noted a meeting with actor Jon Voight, one of his Hollywood ambassadors, and urged lawmakers to “immediately craft legislation to save the Movie, Television, and Entertainment Business in America.” The appeal comes as U.S. productions increasingly relocate to Canada and other countries.
Trump did not outline the incentive’s size or structure. Industry advocates point to a proposal that would grant a 20 percent federal tax credit on U.S. labor costs for qualifying productions. The idea was advanced by Steven Paul, CEO of SP Media Group, and president Scott Karol, according to Reuters. Voight and other Hollywood stakeholders are collaborating with the Motion Picture Association (MPA), the Directors Guild of America, and unions that represent actors, writers, and crew.
The MPA, whose members include Netflix, Paramount, Sony, Universal, Disney, Prime Video, Amazon MGM and Warner Bros, welcomed Trump’s call. MPA chairman and CEO Charles Rivkin said the incentive would be a “landmark step toward bringing more production to local communities in all 50 states.” Rivkin added that the group would work with the White House and bipartisan leaders to enact a national production incentive. Senator Adam Schiff of California, a Democrat, echoed the president’s appeal in a tweet on X, writing, “I am in strong agreement with the President. 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.” Schiff’s support illustrates a rare cross‑party consensus on the issue.
Trump has argued that the economic activity generated by a federal incentive would more than offset its cost to the Treasury. A Deadline article quoted the president as saying, “The amount of money spent on tax incentives will be made up tenfold by the money pouring into the Treasury’s coffers.” The claim has not been backed by an independent analysis. Industry analysts note that Canada offers a 25 percent tax credit for film and television labor, a rate that has attracted many U.S. productions. The U.S. has not had a federal incentive since the 1990s, and several states have tried to compensate with their own credits. The loss of jobs in Hollywood has been a long‑running concern for studios and unions.
The proposed incentive would apply to productions that meet U.S. labor thresholds and would not replace existing state credits. If enacted, it could create hundreds of new jobs in production, post‑production, and related services across the country. At present, Trump’s call has not translated into a specific bill. The president has said he is arranging meetings with congressional leaders from both parties, and the MPA and other industry groups have indicated they are ready to collaborate on drafting legislation. No timeline has been set for congressional action.
In summary, President Trump has formally asked Congress to approve a federal film and television tax credit, a request that has received bipartisan support from Senator Schiff and industry leaders. The proposal, which would provide a 20 percent credit for U.S. labor costs, remains in the discussion phase as lawmakers weigh the potential economic benefits against fiscal costs.
