The Democratic victory in the US midterms was a referendum on Donald Trump, prices and the war in Iran. Its effects could also reach Hollywood, as Congress takes up issues important to studios and broadcasters.
Hollywood’s top legislative priority is passage of a federal tax incentive by the end of the year. The proposal has bipartisan support, but the disruption of the election could slow its progress. Trump has not firmly committed to backing the credits, while congressional Republicans are focused on internal recriminations and a leadership contest.
Democrats are more supportive of Hollywood than Republicans, so the bill’s prospects could improve in the 120th Congress. But lawmakers would have to start over: 10 of the 31 Republican House and Senate cosponsors will not return next year.
A Democratic Congress would not change the makeup of the Federal Communications Commission, but it could increase scrutiny of chairman Brendan Carr. Democrats may use subpoena powers to investigate past and future controversies over his pressure on broadcasters and inquiries into political commentary.
The Corporation for Public Broadcasting closed last year after Congress withdrew $1.1 billion in funding, putting local station budgets at risk and cutting off a major source of support for PBS and NPR. Democrats could seek to restore federal funding, although doing so would reopen culture-war disputes over public media.
The House Oversight Committee may examine media deals and legal disputes involving Trump in 2025. It could also scrutinize the Ellison family’s efforts to secure Trump’s backing for the Paramount-Skydance and Paramount-Warner Bros. mergers.
