Federal subsidies

State Film Subsidies Lose Money. Trump Wants To Try the Idea Nationally.

There's “no reason to think a federal incentive would work any differently from state incentives,” says one expert.

Tosin Akintola | 9.3.2026 3:43 PM

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(Photo: Dan Breckwoldt/Shutter2u/Dreamstime. Illustration: Fatima Ruiz/Midjourney.)

President Donald Trump wants taxpayers to pay Hollywood to make movies in America. 

The crux of the president's idea, announced in a Truth Social post on Monday, is to create a "Federal Production Incentive to create Entertainment Jobs in America." Trump claims the tax break for Hollywood would "benefit ALL of America," and that any money "spent on Tax Incentives will be made up tenfold by the money pouring into the Treasury's coffers."

Subsidizing movie production is not a new idea. In 2024, The New York Times reported that states had doled out $25 billion in taxpayer money to the film industry in the past two decades. These tax incentives for the film and television industry have not been a wise use of public money, and in several states they have been a net negative. In........

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