This bill creates a new tax on big tech companies that make money from digital advertising. Any company earning more than $2.5 billion per year from ads on websites, apps, search engines, and similar platforms would have to pay a 50% tax on the money they make above that threshold. This would primarily affect major tech companies like Google, Facebook, Amazon, and similar platforms that generate huge revenues from advertising.

The money collected from this tax gets split three ways. One-third goes toward supporting local journalism—either through tax credits for news organizations that hire journalists or for small businesses that advertise in local news outlets. Another third funds a tutoring program that provides one-on-one tutoring grants to schools serving low-income students. The final third supports career and technical education programs that teach students job skills in fields like trades and manufacturing.

The tax takes effect starting in 2026 and is designed to address two concerns at once: reducing the profits of companies that benefit from keeping people scrolling endlessly on their platforms, while using that tax revenue to invest in education and local news. The bill essentially redirects money from digital advertising companies toward helping students get better academic support and job training, plus strengthening local journalism that has struggled as advertising dollars moved online.