Sponsors (2)
The bill channels a new targeted tax on advertising into a dedicated Trust Fund to provide predictable, automatic funding for tutoring, CTE, and local-news support — trading off more stable program financing for reduced general Treasury resources, potential higher ad costs, administrative burdens, and funding volatility tied to the tax's receipts.
Students (especially in low-income/Title I schools) will gain expanded access to one-on-one tutoring and targeted academic supports through new grant programs, increasing individualized instruction and potential learning outcomes.
Career and technical education (CTE) students and programs will receive additional, more predictable funding that can expand CTE offerings and improve workforce skills and job readiness.
Creates a dedicated Trust Fund and automatic transfers (one‑third of specified sec. 4286 receipts) to finance credits and grants, improving predictability and multi-year planning for education, CTE, and local-news programs without annual appropriations.
Taxpayers and the federal budget will see one-third of specified sec. 4286 receipts diverted to the Trust Fund, reducing general Treasury receipts available for other priorities or deficit reduction.
Advertisers, publishers, and small businesses may face higher advertising costs if platforms pass the targeted fee through, increasing expenses for businesses and consumers.
Programs and beneficiaries (schools, students, CTE programs, local-news efforts) could experience funding volatility if sec. 4286 tax receipts fluctuate, creating year-to-year uncertainty and possible underfunding.
Based on analysis of 7 sections of legislative text.
Introduced December 1, 2025 by Jake Auchincloss · Last progress December 1, 2025
Creates a new tax on digital advertising services and directs one-third of the revenue to three new Treasury trust funds: one to support local journalism tax credits, one to fund one‑on‑one tutoring grants for Title I elementary and secondary schools, and one to supplement Career and Technical Education (Perkins) funding. Requires the Education Department to set up a competitive grant program for state education agencies to fund individual tutoring at Title I schools within 180 days of enactment, and ties the Perkins allotment language to the CTE trust fund amounts for fiscal years beginning 2027 onward.