The warning came in a packed chamber in Burbank, where industry workers, reporters, and local advocates gathered to hear a blunt assessment from Sen. Adam Schiff. Nearly half of American film and television production, he said, is no longer happening in the United States. The number—45 percent—marks a sharp rise from just two years ago, when the figure stood at 33 percent.
Schiff tied that shift directly to aggressive policies overseas. Governments in countries like the United Kingdom and others have poured resources into building production infrastructure, offering financial incentives that studios increasingly find difficult to ignore.
The result, he argued, is not just a gradual drift but a measurable loss of jobs and stability within the domestic industry. According to his estimate, more than 42,000 jobs tied to film and television production have already disappeared, taking with them long-standing career paths that once defined Hollywood’s workforce.
The senator’s remarks did not focus solely on diagnosing the problem. He pointed to what he sees as a structural gap in U.S. policy. While California and other states have introduced tax incentives aimed at keeping productions local, Schiff described those efforts as insufficient in a global market where entire nations are competing for the same projects.
State-level programs, in his view, cannot match the scale or consistency of national strategies deployed abroad.
His proposed solution centers on a federal tax credit designed to level that playing field. The goal would be straightforward: make it financially viable, or even preferable, for studios to keep production within the United States rather than relocating to countries offering better deals. Schiff framed the issue as urgent, suggesting that delays in federal action would only accelerate the trend.
Industry voices appear open to that approach. Joe Chianese of Entertainment Partners described the concept of a federal incentive as logical, noting that it could provide broad support not just for California but for production nationwide. His comments reflect a growing consensus among some executives that fragmented, state-by-state policies are no longer enough to compete globally.
Despite these concerns, the U.S. remains a dominant force in high-budget productions. Data cited by the Los Angeles Times shows the country still leads in total production spending, reaching $12.15 billion last year. That figure, however, represents a 20 percent decline from the previous year, a drop that aligns with the broader shift Schiff described.
Meanwhile, countries like the United Kingdom continue to strengthen their position. Expanded incentives, experienced crews, and modern facilities have made them increasingly attractive destinations for major projects. For studios weighing costs and logistics, the decision often comes down to economics, and right now, those numbers are pointing outward rather than back toward Hollywood.
