- jurisdiction
- US Federal
- obligations
- Would tax companies that develop or sell access to certain large AI models, and companies that use those models to reduce their workforce, calculated on the higher of (a) the value of AI 'tokens' processed/sold or (b) revenue/consideration received for AI products or services. The tax rate escalates with national unemployment: a base rate at or below 5% unemployment, higher rates between 5% and 7%, and higher still above 7%; the Treasury Secretary may adjust the higher-rate formulas where unemployment above 5% is attributable to a war, pandemic, or other major economic shock unrelated to AI. Revenue funds a new Work Protection Administration within the Department of Labor, which awards competitive grants to state and local governments for public-service jobs in fields including child care, public education support, health care, elder care, housing construction, homeless services, violence prevention, scientific research, transportation and infrastructure, arts and culture, environmental and climate projects, wildfire prevention, facility maintenance, parks, local journalism, and workforce training; grant-funded positions must pay at least the highest of federal, state, or local minimum wage, or prevailing wage, plus health coverage and 12 weeks of paid family/medical leave.
- notes
- Introduced by Rep. Greg Casar (D-TX-35), with cosponsors Valerie Foushee (D-NC) and Sara Jacobs (D-CA), on August 6, 2026; confirmed via GovInfo's official bill-status record (BILLS-119hr10044ih). Referred to the House Committee on Education and Workforce and the Committee on Ways and Means. Official title per GovInfo: 'To impose a tax on artificial intelligence token usage and establish a Work Protection Administration within the Department of Labor, and for other purposes.' Not yet passed by either chamber; the House's Republican majority makes near-term passage unlikely, but the bill is real and untracked. Tax-mechanism and grant-program details in the obligations field are drawn from the bill's own summary as reproduced by legislative trackers (Quiverquant, LegiScan) rather than a full primary-text fetch of the introduced bill.
- level
- federal
- domain
- general
- status
- proposed
- scope
- Federal bill that would impose a tax on artificial intelligence token usage and establish a new Work Protection Administration within the Department of Labor to fund job-creation grants for workers displaced by AI.
- appliesTo
- Companies that develop or sell access to covered large AI models; companies that use such models to reduce their workforce
