The DGA's Low Budget Agreement is a multi-leveled contract created to cover films intended for theatrical or home video/DVD release. The LBA offers a very flexible strategy which allows lower-budgeted films to be made under a DGA contract, therefore granting Guild protections to the filmmakers, while at the same time allowing producers to hire DGA members at rates commensurate with the film’s budget. Since its inception, many films that would have been made without a DGA contract have now fallen under the umbrella of the Guild via the LBA.

Formerly, the LBA was structured in four tiers: films with budgets equal to or less than $1,030,000; films with budgets greater than $1,030,000 but equal to or less than $2,570,000; films with budgets greater than $2,570,000 but equal to or less than $3,605,000; and films with budgets greater than $3,605,000 but equal to or less than $7 million. The cap has now been increased by $2.5 million, allowing films produced for under $9.5 million to be made with the LBA.

The DGA negotiated these new limits with several prominent independent film companies that requested an additional, higher top budget tier. These new limits specify that DGA Members will receive 90% of applicable scale compensation, while at the same time satisfying the needs of several companies that produce a significant number of motion pictures each year.