Cage leads the cast of The Runner as a New Orleans congressman whose professional life is destroyed by a sex scandal.
Nicolas Cage's laugh: Watch a retrospective look at maniacal chuckle
The movie is set against the backdrop of the 2010 BP oil spill, which ravaged the ecosystem of the Gulf Coast of the US.
Fonda is playing Cage's on-screen father and the former mayor of New Orleans, according to The Hollywood Reporter.
Nielsen has been cast as the politically-ambitious wife of Cage's character Colin Price, while former Wire star Pierce will portray Price's chief advisor.
The supporting cast also includes Bryan Batt and Sarah Paulson.
The Runner - which will be directed by Austin Stark – is slated to open in cinemas next year.