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Las Vegas looks to join Atlanta as the next film production hotspot while California tries to combat Hollywood’s slump

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Movies like “The Hangover” and “Ocean’s Eleven” piqued interest in the Las Vegas Strip long ago. But now Nevada labor unions hoping to boost jobs and tourism are pushing state officials to offer tax credits aimed at bringing more Hollywood filmmaking to the state.

The effort to offer up to $95 million in tax credits to Sony Pictures Entertainment and Warner Bros. Discovery for a new film production facility in the Vegas suburbs didn’t win enough legislative support earlier this year. But more than a dozen labor unions are pushing to revive the proposal during an expected special session next month.

“We believe if we can get the public behind us, we’ll be able to get the legislators to understand what a big change this can bring to Southern Nevada,” said Tommy White, business manager-secretary treasurer of Laborers’ International Union of North America, Local 872 in Las Vegas.

Trade unions formed a political action committee called Nevada Jobs Now, which has raised over $1 million to be used for digital advertisements, mailers and some TV commercials, White said. The production companies behind the project say it would create 19,000 construction jobs.

If the unions are successful, Las Vegas would be competing with cities like Atlanta, where the film industry has boomed for more than a decade thanks to a far more generous tax break. California, meanwhile, recently revamped its own tax incentive programs to combat a multiyear downward trend in Hollywood film production.

The production companies would not come to Las Vegas if they don’t receive the tax incentives, according to David O’Reilly, CEO of Howard Hughes Holdings, the developer of the proposal called Summerlin Studios. It would include 10 movie stages, hotels, a medical center and be part of a master-planned neighborhood in West Las Vegas.

“There would be no reason for Sony and Warner to film in Nevada when they can get tax credits in 20 other states or around the globe,” he said. “They need to bring their productions to where they have the best economic deal, and we’re just trying to make Nevada competitive with everybody else.”

To be eligible for the tax credits, $400 million needs to be spent building a studio and $1.8 billion spent building the mixed-use development of shops and restaurants, O’Reilly said. Sony and Warner Bros. would have to spend $4.5 billion over 15 years. They would be eligible for the tax credits after the studio is built and filming begins, he said.

Drawing the movie buff to Vegas

The proposal comes as Las Vegas continues to see a decline in tourism. Between June 2024 and June 2025, the Las Vegas Convention and Visitors Authority reported an 11.3% decline in visitors.

White and other supporters argue that not only will the film studios bring jobs and revenue, it will also attract tourists.

“With movie studios, you bring in a whole different type of tourist,” White said, likening it to how major sports teams draw visitors. “You don’t just bring the person that’s come in to go to a resort to gamble.”

Stephen Weizenecker, an Atlanta attorney who was involved in Georgia’s film tax credit program since its inception in 2008, said Georgia has seen more tourists wanting to visit the scenes where movies like “The Hunger Games” and “Forrest Gump” were filmed.

Dubbed the “Hollywood of the South,” metro Atlanta became a ubiquitous backdrop for huge projects, including Marvel films and Netflix’s “Stranger Things.” Its program has supported thousands of jobs and the creation of several thriving studios. But it is expensive — the state in 2024 was projected to give out $1.35 billion in credits that year alone.

The state’s return is an average of 17 cents in tax revenue for every state dollar spent, according to Carlianne Patrick, an associate professor at Georgia State University who conducts audits of the state’s tax credit programs.

Georgia has seen a large increase in production activity and an increase in jobs, though not all of them are full-time, permanent positions, Patrick said.

State employee union argues against the proposal

Some don’t see the payoff in giving tax credits to the film studios.

The American Federation of State, County and Municipal Employees (AFSCME), a union representing thousands of state workers, joined other Nevada organizations this week in sending a letter to the governor urging him to not include the film tax credit proposal in the upcoming special session. Republican Gov. Joe Lombardo says he will call lawmakers back to the capital before the years ends, but it’s not yet clear what issues lawmakers will tackle.

They argue the project is “fiscally irresponsible and politically indefensible” and would only generate $0.52 in tax revenue for every $1 in credit, citing a May 2025 report commissioned by the state.

“Every dollar we lock into a corporate handout is a dollar we can’t put toward our rainy-day readiness, public education, health care, wildfire mitigation, housing, and the basic services Nevadans rely on when times get tight,” the organizations wrote in the letter.

Jared Kluesner, a psychiatric nurse at the Southern Nevada Adult Mental Health campus in Las Vegas and member of AFSCME, said the state should prioritize public services for people with mental health issues.

Kluesner wants Sony and Warner Bros. to build a film studio facility and create more jobs for Nevadans, but “if they’re going to do it at the cost of public services and funds that should be allocated to state workers, then that’s not really solving any problems.”



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Rivian CEO says it’s a misconception EVs are politicized, with a 50-50 party split among R1 buyers

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December 10, 2025

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If Rivian’s sales are any indication, owning an electric vehicle isn’t such a partisan issue, despite President Donald Trump’s rollbacks of mandates, incentives, and targets for EVs.

At the Fortune Brainstorm AI conference in San Francisco on Tuesday, Rivian CEO RJ Scaringe said it’s a misconception that electrification is politicized, explaining that most customers buy a product based on how it fits their needs, not their ideology. The questions car buyers ask, he said, are the same whether they’re purchasing one with an internal-combustion engine or a battery: “Is it exciting? Are you attracted to the product? Does it draw you in? Does the brand positioning resonate with you? Do the features answer needs that you have?”

Buyers of Rivian’s R1 electric SUV are split roughly 50-50 between Republicans and Democrats, Scaringe told Fortune’s Andrew Nusca. “I think that’s extraordinarily powerful news for us to recognize—that this isn’t just left-leaning buyers,” he added. “These are people that are saying, ‘I like the idea of this product, I’m excited about it.’ And this is thousands and thousands of customers. This is statistically relevant information.”

Buying an EV was once an indication of left-leaning politics, but the politics got scrambled after Tesla CEO Elon Musk became the top Republican donor and a close adviser to Trump. That drew some new customers to Tesla, and turned off a lot of progressive EV buyers, with many existing owners putting bumper stickers on their Teslas explaining that they bought their cars before Musk’s hard-right turn. Trump and Musk later had a stunning public feud, in part over the administration’s elimination of EV and solar tax credits.

But Scaringe said he started Rivian with a long-term view, independent of any policy framework or political trends. He also insisted that if Americans have more EV choices, sales would follow. Right now, Tesla dominates a key corner of the market, namely EVs in the $50,000 price range. Rivian’s forthcoming R2 mid-size SUV will represent a new choice in that market, with a starting price of $45,000 versus the R1’s $70,000.

Ten years from now, Scaringe said he hopes—and believes—that EV adoption in the U.S. will be meaningfully higher than it is today across the board, explaining that the main constraint isn’t on the demand side. Instead, it’s on the supply side, which suffers from “a shocking lack of choice,” especially compared to Europe and China, he added. EV options in the U.S. are limited by the fact that Chinese brands are shut out of the market.

More choices for U.S. EV buyers would presumably create more competition for Rivian—and indeed, the flood of low-priced Chinese EVs in other auto markets has created a backlash, with countries such as Canada imposing steep tariffs on them. But Scaringe appears to view more competition as positive for the market overall.

“I do think that the existence of choice will help drive more penetration, and it actually creates a unique opportunity in the United States,” he said.



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Powell warns of a ‘very unusual’ economy as inflation remains high amid a weakening job market

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December 10, 2025

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Federal Reserve Chair Jerome Powell on Wednesday described the U.S. economy as “very unusual,” saying policymakers are navigating a rare combination of tariff-driven goods inflation and a labor market that may already be weaker than official data suggests.

The Fed cut interest rates for the third consecutive meeting, a quarter-point reduction Powell framed not as a confident pivot toward easier policy, but as a defensive move meant to keep the labor market from slipping further. He repeatedly emphasized risks to employment have risen “in recent months,” and noted that behind the headline numbers, job creation may already be negative.

Powell made the striking admission the Fed believes the official payroll figures—which have slowed sharply since the summer—are overstating job growth by roughly 60,000 per month. 

“Forty thousand jobs could be negative 20,” he said, adding this dynamic is not well understood by the public because unemployment claims remain historically low—something both economists Mark Zandi and Claudia Sahm recently toldFortune could be giving people a false sense of security about the job market.

“I think a world where job creation is negative… we need to watch that very carefully,” Powell said. 

It is this weakening backdrop Powell said makes the current moment “very unusual”: Inflation remains elevated, but most of the remaining overshoot comes from goods categories directly affected by tariffs, as opposed to domestic economic overheating, which he said the Fed has worked hard to cool since its 2022 highs; inflation excluding tariff-affected goods is “in the low [two percent],” he said. Services inflation is cooling, wage pressures are easing, and neither the labor market nor business surveys suggest a “Phillips-curve” kind of inflation threat, Powell said, referring to the inverse relationship between inflation and unemployment. 

Instead, Powell said, the bulk of the problem is a “one-time price increase” pushing up goods categories as import levies work their way through supply chains. Goods inflation, he noted, should peak around the first quarter of 2026, assuming no additional tariff rounds.

Those crosscurrents have fractured the Fed. Three officials formally dissented from the rate cut on Wednesday, and several others offered what Powell described as “soft dissents,” when an official’s personal projection falls out of what they ultimately voted for. There were six such “soft dissents” this time, during one of the deepest divides inside the FOMC in years, driven by disagreement over how to weigh the risks of lingering inflation against the possibility that job growth is weaker—and much more fragile—than reported.

Powell stressed that policymakers cannot simply choose one mandate to prioritize. 

“There is no risk-free path,” he said, a refrain he’s repeated for months. “When both sides of the mandate are threatened, you should be kind of neutral.” 

He characterized the current stance as being at the “high end” of neutral, allowing the Fed to “wait and see” how the data evolve.



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Top economist Diane Swonk: Jerome Powell risks losing the Fed’s credibility on a gamble about AI and immigration

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December 10, 2025

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Federal Reserve Chair Jerome Powell warned Wednesday afternoon that the U.S. labor market may be significantly weaker than the official data suggest. But according to KPMG chief economist Diane Swonk, the Fed may be drawing the wrong conclusion—and in doing so, risks undermining its hard-won credibility on fighting inflation.

In a new analysis shared with Fortune, Swonk argues that Powell is treating the slowdown in hiring as a sign of weakening demand that must be offset with lower interest rates. But if that weakness is being driven instead by structural forces—specifically, AI adoption and sharp declines in immigration—then cutting rates won’t fix the underlying problem and could worsen inflation.

“Powell risks the Fed’s inflation-fighting credibility if the weakness in employment is due more to AI and curbs in immigration than weak demand,” Swonk wrote.

That warning comes after one of the most contentious Federal Open Market Committee meetings in years. The Fed cut rates by a quarter point for the third meeting in a row, taking the federal funds rate down to 3.5%–3.75%, but the vote fractured the committee. Swonk notes it was the first time since 2019 that there were three dissents, and they came “in opposite directions.”

Governor Stephen Miran — currently on leave from the White House Council of Economic Advisers — voted for a half-point cut, while Kansas City Fed President Jeff Schmid and Chicago Fed President Austan Goolsbee voted to hold rates steady.

Swonk highlights that the Fed’s statement resurrected language meant to indicate a pause: “In considering the extent and timing of additional adjustments… the Committee will carefully assess incoming data, the evolving outlook and the balance of risks.” Powell reinforced that stance, saying “We are well positioned to see how the economy evolves” and emphasizing that policymakers would need to “be a bit skeptical” of data distorted by the government shutdown.

But the bigger issue, Swonk argues, is that Powell kept pointing to imminent downward revisions to employment, revisions she warns may not mean what the Fed thinks they do.

If job growth is negative because automation is replacing workers or because the labor force is shrinking due to immigration policy, then monetary policy can’t solve the problem. That’s because rate cuts can stimulate demand, but they cannot create workers or reverse automation decisions already made by firms. 

“The challenge is if that weakness is due to AI and curbs on immigration, then rate cuts will not do much to shore up the labor market. More could show up in inflation,” she wrote.

Powell, during the conference, acknowledged that AI may be “part of the story” behind the cooling labor market, citing major employers like Amazon that have linked hiring freezes and job cuts to automation. But he stressed that it’s “not a big part of the story yet,” and said it’s too early to know whether this wave of technological change will ultimately destroy more jobs than it creates.

He also noted that labor supply has “come down quite sharply” due to a drop in immigration and participation.

A misread could become especially dangerous given the fiscal backdrop. Swonk notes that “expansions to tax cuts last year will show up as a record high tax refunds in early 2026,” warning that the windfall could “further entrench inflation much like we saw in the wake of the pandemic.” 

At the same time, federal debt is projected to surpass GDP for the first time since World War II, marking a level of issuance that is “a lot of debt for bond markets to absorb.”

Swonk also flags mounting risks to credibility inside the Fed itself.

Six participants wanted to hold rates steady, and the market openly dismissed Powell’s attempt at a hawkish spin: investors “priced in more cuts after the meeting,” she notes. Powell now appears to be one of the more dovish voices on the committee, raising questions about the direction of policy if the administration installs a new chair aligned with Miran’s more aggressive easing stance.

Swonk expects the Fed to pause early next year, but warns that if inflation fails to cool as expected, “the bond market could grow more skittish about rate cuts.”



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