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119-s-5518119th CongressWALLET

Make AI Work for Americans Act

Sponsored By: Senator Kelly, Mark [D-AZ]

Introduced

Summary

This bill would create the _Artificial Intelligence Horizon Fund_ to collect new AI- and digital-advertising–linked taxes and direct that money toward worker training, small-business support, community service career pathways, and upgrades to unemployment insurance systems. A bipartisan Artificial Intelligence Advisory Council would recommend yearly allocations to guide spending and program priorities.

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  • Workers and jobseekers: funds would pay for training, AI literacy, wage insurance pilots, short-time compensation, expanded Individual Training Accounts, and a new National Service for America’s Future that seeds paid service-to-career pathways. The bill authorizes a $30.0 billion repayable advance to jumpstart the Fund.
  • Small businesses and entrepreneurs: it renames and expands self-employment assistance into “Entrepreneurs of the Future,” creates a Small Business Futures program to connect jobseekers to counseling and capital, and funds community college workforce grants to boost credentials and digital adoption.
  • States and unemployment systems: the bill would set higher UI floors and require a State maximum weekly benefit of at least two thirds of the State average weekly wage, change base-period rules for eligibility, and direct at least $225.0 million annually starting FY2027 to Unemployment Trust Fund modernization and fraud prevention.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 5 benefits, 3 costs, 0 mixed.

Grants and training for workers

If enacted, the bill would fund many workforce programs from the AI Horizon Fund. States could receive grants to run paid service-to-career positions that pay at least $20 per hour, with that floor rising with CPI. Community colleges could get competitive grants for workforce training, equipment, and student supports for up to four years. Local areas could use training accounts, with a local ITA maximum not set below $7,000 per participant. The bill would fund voluntary credential frameworks and a U.S. Department of Education clearinghouse of AI education resources, require accessible materials, and fund wage-insurance and short-time compensation pilots.

Stronger unemployment benefits

If enacted, the bill would raise how weekly unemployment benefits are calculated and strengthen State systems. The bill would let States use the most recent four completed quarters to determine eligibility. A claimant's weekly benefit would be at least 75% of earnings in the highest-earnings quarter divided by 13, up to the State maximum. Each State's maximum weekly benefit could not be less than two-thirds of the State's average weekly wage. Beginning in fiscal year 2027, at least $225 million per year from the Fund would go to the Unemployment Trust Fund for fraud detection, faster payments, and State grants to improve operations. The bill would reimburse States for the extra weekly benefit amounts subject to eligibility rules, and States that cut their maximum weekly benefit would be ineligible.

Tax break for service awards

If enacted, the bill would exclude a National Service for America's Future completion award from federal gross income. That means recipients would not count a qualifying completion award as taxable income for federal income-tax purposes. The provision applies only to awards paid under the program.

Create AI workforce fund

If enacted, the bill would create the Artificial Intelligence Horizon Fund, run by the Labor Secretary, to pay for workforce and community programs. The Fund would be financed by new taxes under a new tax chapter and could receive other deposits. The bill would authorize a $30 billion repayable advance to the Fund, repaid at up to 10% of each year's Fund appropriation until paid. A 15-member advisory Council would recommend allocations, and $7.5 million per year would go to the Labor Department Inspector General for oversight. The Council could not recommend using more than 3% of the Fund for administrative costs and must avoid funding uses that displace workers or violate civil rights.

50% excess profits tax

If enacted, the bill would impose a 50% tax on the amount by which a covered taxpayer's taxable income exceeds 40% of its gross receipts. The rule would apply to taxable years beginning after December 31, 2026. Covered taxpayers are those with large revenues and qualifying AI or AI-compute activities, or certain large AI electricity users. The bill would aggregate electricity use and related activities for coverage rules.

5% tax on big digital ads

If enacted, the bill would impose a 5% tax on digital advertising revenue from ads shown to U.S. users for very large firms. The tax would apply to taxable years beginning after December 31, 2026. A company would be covered if it meets the revenue tests (over $50 billion global or over $1 billion U.S.) and has over $50 million in qualifying U.S. ad revenue. Covered entities would also face new reporting rules that use a $40 million reporting threshold. The bill says those reporting rules would not force collection of sensitive personal data beyond what a business already collects.

State small business grants

If enacted, the bill would let the Labor Secretary award grants to States to support entrepreneurship and small business capacity. States could create small-business liaison offices, connect owners to Small Business Development Centers, and help firms adopt digital and AI tools. Funds would come from the AI Horizon Fund and require coordination with State small-business centers.

Small fee on AI content use

If enacted, the bill would tax covered AI content-generation at $1.10 per 1,000,000 computational units, with one unit equal to 10 KB. Each covered user would get the first 1,000,000 units per calendar year exempt. Providers would generally collect and remit the tax quarterly, but a provider could elect to pay instead. The bill would also raise penalties for failures tied to this tax by adding an extra penalty equal to 200% of the amount involved.

Sponsors & CoSponsors

Sponsor

Kelly, Mark [D-AZ]

AZ • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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