Education Not Endless Scrolling Act

Bill Number

H.R. 6335

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-12-01: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-04-17T08:07:16Z

AI-Generated Summary

Purpose of the Legislation

The "Education Not Endless Scrolling Act" (H.R. 6335) aims to generate revenue by taxing large providers of digital advertising services. The funds are directed toward supporting local journalism, one-on-one tutoring programs in schools, and career and technical education initiatives, with the goal of promoting education and community media while addressing concerns about excessive digital engagement.

Key Provisions

• Imposition of Tax on Digital Advertising Services:
• A new tax of 50% is applied to a covered taxpayer's gross receipts from hosting digital advertising services in the United States, but only on amounts exceeding $2.5 billion in the prior taxable year.
• Covered taxpayer: Any person or business engaged in hosting such services with at least $2.5 billion in relevant gross receipts from the previous year.
• Digital advertising services: Includes ads on digital platforms (e.g., websites or apps), such as banner ads, search engine ads, interstitial ads (pop-ups between content), and sponsored search or shopping results.
• Gross receipts: Defined similarly to existing tax code rules for business income.
• The U.S. Treasury Secretary can issue regulations, including penalties for promoting virtual private networks (VPNs) to evade the tax.
• Effective for taxable years beginning after December 31, 2025.

• Creation of Trust Funds:
• Three separate trust funds are established in the U.S. Treasury, each receiving one-third of the tax revenue collected under the new tax:
• Local Journalism Preservation Trust Fund: Holds funds until Congress enacts tax credits for (1) local news organizations hiring journalists or (2) small businesses advertising in local news outlets. Once credits are enacted, equivalent amounts are transferred to the general Treasury fund to offset them.
• One-on-One Tutoring Trust Fund: Funds a new grant program (detailed below) for individual tutoring in eligible schools, available without further congressional approval.
• Career and Technical Education Support Trust Fund: Provides additional funding for grants under the existing Carl D. Perkins Career and Technical Education Act of 1965 (Perkins Act), which supports vocational training programs.
• All trust funds apply to taxes received after December 31, 2025.

• Grant Program for Tutoring:
• The U.S. Secretary of Education must award competitive grants within 180 days of enactment to state educational agencies.
• Grants support one-on-one tutoring programs in eligible elementary or secondary schools that receive federal aid under Title I of the Elementary and Secondary Education Act of 1965 (for low-income students).
• Regulations will cover application processes, grant durations, amounts, and program requirements.
• Terms like "elementary school," "secondary school," and "state educational agency" follow standard federal education definitions.

• Support for Career and Technical Education:
• Amends the Perkins Act to include trust fund appropriations as part of the funding formula for allotments starting in fiscal year 2027, effectively boosting federal support for vocational programs without new annual appropriations.

Significant Changes to Existing Law

• Adds a new Subchapter D to Chapter 33 of the Internal Revenue Code of 1986 (which covers facility-related taxes) to impose and define the digital advertising tax.
• Inserts three new sections (9512, 9513, and 9514) into Chapter 98, Subchapter A of the Internal Revenue Code, creating the trust funds and linking them directly to tax revenues.
• Modifies Section 111 of the Perkins Act by clarifying that trust fund amounts count as appropriated funds for future fiscal years, increasing baseline funding for career and technical education without altering the core structure of the law.
• No changes to existing digital ad regulations or education laws beyond the funding mechanisms; the bill focuses on revenue generation and allocation.

Potential Impacts

• On Government Agencies: The Internal Revenue Service (IRS) will enforce the new tax, including audits and penalties, increasing administrative workload. The Department of Education will manage the tutoring grant program, potentially expanding its role in school support. The Treasury Department will handle trust fund transfers, with one-third of revenues earmarked for specific uses, which could stabilize funding for journalism and education programs amid budget fluctuations.
• On Citizens: Students in low-income schools may gain better access to personalized tutoring and vocational training, potentially improving educational outcomes. Local communities could benefit from preserved journalism if tax credits are later enacted, supporting news coverage of public issues. Small businesses might receive advertising tax credits, reducing costs for local promotions.
• On Businesses: Large digital ad platforms (those exceeding the $2.5 billion threshold) face significant new costs, which could lead to higher ad prices passed to advertisers or consumers. Smaller providers are exempt, protecting them from the tax.
• On International Relations: No direct impacts mentioned; the tax applies only to services hosted in the U.S., but foreign companies operating U.S.-based ads could be affected, potentially prompting trade or tax disputes if seen as discriminatory.

Main Stakeholders Affected

• Large Digital Advertising Companies: Primary taxpayers (e.g., platforms like Google or Meta with over $2.5 billion in U.S. ad revenue), bearing the 50% tax burden.
• Local Journalism Entities: Potential beneficiaries through future tax credits for hiring or operations, aiming to sustain community news amid declining ad revenues.
• Schools and Students: Eligible Title I schools and low-income students gain from tutoring grants and enhanced vocational funding, supporting academic recovery and skill-building.
• Small Businesses: Could access tax credits for advertising in local news, easing promotion costs.
• Government Entities: IRS (tax collection), Department of Education (grants), Treasury (fund management), and state educational agencies (grant recipients).
• Educators and Journalists: Tutors, teachers in career programs, and newsroom staff may see job opportunities or stability from funded initiatives.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: The tax targets a specific industry, which could invite lawsuits under the Uniformity Clause (requiring equal taxation across states) or as an unconstitutional burden on interstate commerce. The VPN evasion penalty raises enforcement challenges, relying on IRS regulations to define "deliberate" promotion. Trust funds create dedicated revenue streams, but the journalism fund's dependency on future legislation introduces uncertainty.
• Constitutional Implications: Potential First Amendment concerns if the tax is viewed as regulating speech (ads as protected expression), though it functions as a content-neutral excise tax on business revenue. No direct equal protection issues, as the $2.5 billion threshold exempts smaller entities.
• Political Implications: The bill links tech taxation to popular public goods (education and local news), potentially appealing to voters concerned about social media's societal effects. It may spark debates on "Big Tech" accountability versus innovation stifling, with bipartisan committee referrals (Ways and Means for tax, Education and Workforce for grants) signaling broad jurisdictional interest. The name "Education Not Endless Scrolling" implies a policy intent to prioritize learning over digital distraction, which could influence public discourse on tech regulation.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Auchincloss, Jake [D-MA-4]

Cosponsors (2)

Rep. Goodlander, Maggie [D-NH-2], Rep. Foushee, Valerie P. [D-NC-4]

Recent Actions

• 2025-12-01: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-12-01: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-12-01: Introduced in House
• 2025-12-01: Introduced in House

Bill Versions

• Education Not Endless Scrolling Act — issued 2025-12-01 — PDF (9 pages)