Sponsors (4)
The bill raises revenue through a new AI‑token tax to fund a federally managed jobs and grant program that expands employment, labor protections, and local services, but it increases taxes and administrative costs, redirects Treasury funds, and may slow AI adoption while complicating budgeting and compliance.
Unemployed workers and local communities gain new permanent full‑time jobs and expanded local services (child care, education supports, health initiatives, elder care, housing, public safety, conservation, infrastructure, local news) through competitively awarded grants funded by the bill.
Workers hired under grant programs receive stronger job-quality protections — a prevailing wage floor, FEHB‑comparable health coverage, paid family and other leave, protections from displacement, and strengthened NLRA/collective‑bargaining notices — improving wages, benefits, and labor rights for grant‑funded employees.
The bill establishes a Treasury trust fund and a dedicated revenue stream to ensure predictable, transparent funding for the new workforce and grant programs, improving tracking of how revenues are used.
Redirecting large shares of tax receipts into a dedicated trust fund reduces general Treasury availability and fiscal flexibility, potentially crowding out other federal priorities and increasing tradeoffs for programs Americans rely on.
The new tax on AI tokens will raise costs for consumers, developers, and businesses, likely increasing prices, reducing adoption of tokenized AI services, and slowing AI product innovation.
Significant new compliance, reporting, and administrative burdens — for tracking 'covered transactions,' remitting the tax, meeting grant conditions, and administering programs — will raise costs for firms, nonprofits, grantees, and taxpayers and may deter participation.
Based on analysis of 4 sections of legislative text.
Creates a federal tax on AI token usage and uses the revenue to fund a new DOL Work Protection Administration that awards grants to create permanent jobs with worker protections.
Official title: To impose a tax on artificial intelligence token usage and establish a Work Protection Administration within the Department of Labor, and for other purposes.
Introduced August 6, 2026 by Greg Casar · Last progress August 6, 2026
Imposes a new federal tax on “artificial intelligence token” usage and directs the revenue into a Treasury trust fund to finance a new federal jobs program. Creates a Department of Labor Work Protection Administration to run a competitive grant program that funds creation of permanent, full‑time jobs with required workplace protections and hiring preferences. The bill uses the new AI‑token tax receipts (and appropriations into a trust fund) to fund grants to eligible entities for job creation in priority areas such as child care, K‑12 supports, and health initiatives; recipients must follow specified employee notice, benefits, hiring, and collective‑bargaining recognition rules (with tribal government exemptions). The Work Protection Administration must be stood up quickly and run grant competitions using interagency review and labor statistics guidance.