Sponsors (3)
The bill channels a new digital advertising revenue stream into automatic Trust Funds that fund tutoring, local journalism support, and CTE—providing predictable, targeted education and local‑media benefits while shifting recurring revenue away from general federal budgets, raising taxpayer cost exposure, adding compliance burdens, and creating potential volatility and distributional winners/losers.
Students (especially K–12 and Title I pupils) gain expanded access to one‑on‑one tutoring and supplemental instruction through competitively awarded grants, which may improve learning outcomes for struggling students.
Creates dedicated, automatic Trust Fund revenue streams (routing a fixed share of specified §4286 receipts) to support tutoring, career/technical education (Perkins), and other targeted programs, providing more predictable, multi‑year funding than annual appropriations.
State education agencies and career & technical education (CTE) programs will receive increased and more predictable Perkins/CTE funding beginning FY2027 as Trust Fund appropriations are folded into formula allotments, supporting workforce development and local labor markets.
Taxpayers effectively forgo a recurring one‑third share of §4286 receipts for general purposes, reducing flexible federal revenue and increasing pressure on other priorities or on raising other taxes if offsets are not provided.
A new federal digital advertising tax raises costs for advertisers and platforms, which may reduce tech sector ad revenue and be passed through to small businesses that buy online ads and ultimately to consumers via higher prices.
Treating Trust Fund appropriations as part of the base for formula grants beginning FY2027 increases long‑term federal spending baselines, creating ongoing cost growth and higher future federal obligations.
Based on analysis of 7 sections of legislative text.
Imposes a federal tax on digital advertising and directs one-third of receipts each to funds for local journalism, one-on-one tutoring grants, and CTE support.
Introduced December 1, 2025 by Jake Auchincloss · Last progress December 1, 2025
Creates a new federal tax on digital advertising services and directs the revenue into three new Treasury trust funds to support local journalism, one-on-one tutoring in Title I schools, and career and technical education (CTE). It also establishes a competitive federal grant program run by the Department of Education to fund individual tutoring in eligible Title I schools and changes how CTE funding allotments are calculated beginning in fiscal year 2027. One-third of the new digital advertising tax revenues are deposited into each of three trust funds: a Local Journalism Preservation Trust Fund, a One-on-One Tutoring Trust Fund (which funds the tutoring grant program), and a Career and Technical Education Support Trust Fund (which supplements Perkins Act section 111 funding). Tutoring grants must be awarded by the Secretary of Education within 180 days of enactment; the trust funds take effect for taxes collected for taxable years beginning after December 31, 2025.