Sponsors (3)
The bill raises a new digital advertising tax to fund dedicated trust streams that expand tutoring, CTE, and local-news supports—providing predictable, program-specific funding—but it increases advertising costs and administrative burdens and reduces general Treasury flexibility while creating vulnerability to revenue volatility.
Students in Title I, tutoring, and career/technical education programs gain expanded access to funded individual tutoring and CTE supports, improving instruction and job training.
Creates predictable, automatic funding streams (trust funds tied to section 4286 receipts) so targeted programs can receive funds more quickly and with less year-to-year appropriation uncertainty.
State education agencies, local CTE programs, and grant applicants get clearer rules, formulas, and guidance for allotments and grant implementation, aiding budgeting and program planning.
Advertisers and publishers face higher costs or reduced revenue from the new digital advertising tax, costs that are likely to be passed on to consumers through higher prices or reduced online content/services.
Earmarking one-third of section 4286 tax receipts for multiple trust funds diverts revenue from the general Treasury, reducing congressional budget flexibility and potentially crowding out other priorities or requiring offsets.
Because the dedicated trusts depend on section 4286 receipts, year-to-year fluctuations or shortfalls in those receipts could make funding for tutoring, CTE, and journalism credits unstable or insufficient.
Based on analysis of 7 sections of legislative text.
Creates a tax on digital advertising and directs one-third of receipts to trust funds for local journalism, tutoring grants for Title I schools, and career/technical education.
Introduced December 1, 2025 by Jake Auchincloss · Last progress December 1, 2025
Creates a new federal tax on digital advertising services and directs one-third of the revenue into three new Treasury trust funds to support local journalism, one-on-one tutoring for Title I schools, and career and technical education. The Education Department must competitively award tutoring grants to State educational agencies within 180 days and make related Career and Technical Education funding available to programs through an amendment to the Perkins Act; the tax and trust-fund receipts take effect for tax years and receipts after December 31, 2025.