Education Not Endless Scrolling Act

The Education Not Endless Scrolling Act imposes a 50% tax on large digital advertising companies' U.S. gross receipts over $2.5 billion, and uses one-third of the revenue for a local journalism trust fund, one-third for a one-on-one tutoring trust fund, and one-third for a career and technical education trust fund, while also creating a grant program for tutoring and supporting career and technical education.

Sec. 2, Tax on digital advertising services: A 50% tax is imposed on covered taxpayers for any taxable year, equal to 50% of the amount by which their gross receipts from hosting digital advertising services in the United States for the preceding taxable year exceed $2,500,000,000. A covered taxpayer is any person engaged in hosting digital advertising services with at least $2.5 billion in such gross receipts. Digital advertising services include banner ads, search engine ads, interstitial ads, sponsored shopping and search results, and similar services. The Secretary may issue regulations, including penalties for using VPNs to evade the tax. This applies to taxable years beginning after December 31, 2025.

Sec. 3, Local Journalism Preservation Trust Fund: A trust fund is established in the Treasury, funded by amounts equivalent to one-third of the taxes received under section 4286. These amounts are held until a law creates a tax credit for local journalism entities hiring journalists or for small businesses advertising in local news outlets. After such a law's effective date, the Secretary transfers amounts equivalent to the credits allowed from the trust fund to the general fund. This applies to taxes received after December 31, 2025.

Sec. 4, One-on-One Tutoring Trust Fund: A trust fund is established, funded by amounts equivalent to one-third of the taxes received under section 4286. Amounts in the fund are available without further appropriation for expenditures to carry out the grant program under section 6 of this Act. This applies to taxes received after December 31, 2025.

Sec. 5, Career and Technical Education Support Trust Fund: A trust fund is established, funded by amounts equivalent to one-third of the taxes received under section 4286. Amounts in the fund are available without further appropriation for expenditures to carry out section 111 of the Carl D. Perkins Career and Technical Education Act of 1965. This applies to taxes received after December 31, 2025.

Sec. 6, Grant program: Within 180 days of enactment, the Secretary of Education awards competitive grants to state educational agencies to provide funds to eligible schools (elementary or secondary schools receiving Title I funds) for individual tutoring programs. The Secretary issues regulations on application requirements, grant periods, amounts, and program requirements.

Sec. 7, Support for career and technical education: Section 111 of the Carl D. Perkins Career and Technical Education Act of 1965 is amended to clarify that for fiscal year 2027 and each succeeding fiscal year, references to amounts appropriated under section 9 or for allotments also include the aggregate amount appropriated to the Career and Technical Education Support Trust Fund under section 9514 of the Internal Revenue Code for the preceding fiscal year.