WASHINGTON, DC – The International Alliance of Theatrical Stage Employees (IATSE) denounces the U.S. Senate budget reconciliation bill and condemns the Republican majority for forcing the legislation through on a partisan basis without including priorities, nor resolving concerns, that IATSE members and working people have been raising consistently over the past several months.

The Senate-passed bill can only be described as a betrayal of American workers – it represents a multibillion-dollar handout to the wealthiest Americans and large corporations, paid for exclusively by workers and their families. Its few provisions that may benefit workers’ tax bills – on overtime and tips – are more than neutralized by the costs imposed in lost health care coverage, higher health care prices, lost food assistance, fewer jobs, and higher energy prices.

IATSE and the broader labor movement waged an aggressive advocacy campaign to address our key issues in this bill.

IATSE members across the country demanded that their Senators remove a reckless provision that would ban states from enacting or enforcing artificial intelligence (AI) protections for a decade, and in this fight we prevailed, as a bipartisan amendment stripped the provision from the legislation.

While the threat to IATSE members’ livelihoods posed by a 10 year ban on states enacting or enforcing AI protections was defeated, our call to include critical film and television tax measures in the package to increase domestic film and television production to bring back American jobs went unanswered by the Senate Republican majority.

“This bill cuts worker protections, jobs, life-saving health care, food security, and will increase costs on working people to pay for tax-cuts for the top 1%,” IATSE President Matthew D. Loeb said following the Tuesday vote. “It is unconscionable, it is an attack on workers, and our Alliance rejects it outright. I commend IATSE members for earning a hard-fought victory on removing the ten-year AI moratorium. With the bill’s fate returned to the House of Representatives, I urge House Republicans to grapple honestly with the harm that would befall their constituents should this bill become law. Otherwise, we will remember 16 months from now at the ballot box.”

Tracking how the 7/1/2025 Senate Reconciliation Bill would affect IATSE members and entertainment workers:

AI Moratorium

• Removed from the bill after a 99-1 vote in the Senate.
• Would have imposed a ten-year ban on enforcement or enactment of allstate-level artificial intelligence (AI) policies, jeopardizing the livelihoods of behind-the-scenes entertainment workers by permitting irresponsible and unchecked AI deployment.

Film & TV Tax Measures

• Does not include any of the film and television tax measures – Sections 199 & 181 – that IATSE and coalition partners advocated for to prevent further offshoring of jobs, preserve existing U.S. production, and make the American film and television market more competitive by offering tax relief for companies that produce in the U.S. with American workers, rather than overseas.

Temporary Tax Deduction on Overtime Pay

• Includes a temporary tax deduction (that expires in 2028) that would ONLY apply to federally mandated overtime as defined by the Fair Labor Standards Act (FLSA) — not your union contract.
• The new overtime deduction would exclude many behind the scenes workers.
  • The only overtime eligible for this deduction would be 1.5x your rate after 40 hours worked in a week, up to $12,500 ($25,000 for joint filers) for the year. Eligibility would begin phasing out for incomes over $150,000/yr.
  • Individuals would also have to meet the FLSA’s definition of overtime non-exempt. For example, the FLSA excludes “creative professionals”, independent contractors (more likely if paid on 1099), and several other categories.

Health Care Cuts & Increased Costs

• While most IATSE members have access to high-quality health coverage achieved through collective bargaining, the proposed cuts to Medicaid and Affordable Care Act tax credits would cause 17 million people to become uninsured, creating funding gaps that would increase health care and insurance costs for everyone, including IATSE health plans.
• Would spike health care costs for people with insurance through work by nearly $500 per person per year and nearly $2,000 annually for a family of four.
• Would eliminate 600,000 care jobs in 2026 alone – forcing more than 330 rural hospitals to close their doors.

Further Anti-Worker Provisions

• Would slash food assistance for 2.9 million Americans, and slash at least 140,000 jobs in food processing facilities, school cafeterias, grocery stores, and farms by cutting $186 billion in SNAP funding.
• Would destroy hundreds of thousands of good energy jobs and raise energy costs at a moment when working-class households are already struggling.