H.R. 6335 — Education Not Endless Scrolling Act

This section establishes a tax equal to 50% of a covered taxpayer's gross receipts attributable to hosting digital advertising services (i.e., banner advertising, search engine advertising, interstitial advertising, sponsored shopping and search results, and comparable services on digital interfaces such as websites or apps) in the United States exceeding $2,500,000,000 in the preceding taxable year. A covered taxpayer is any person engaged in that business with at least $2,500,000,000 in such gross receipts in the prior year. The provision applies to taxable years beginning after December 31, 2025, and directs the Secretary of the Treasury to issue regulations, including penalties for promoting virtual private networks to evade the tax.

This section establishes the Local Journalism Preservation Trust Fund in the Treasury of the United States. The fund receives amounts equivalent to one-third of taxes received under IRC §4286 (i.e., certain air transportation excise taxes), applicable to taxes received after December 31, 2025, which are held until enactment of a law providing tax credits for (1) local journalism entities' expenses related to hiring journalists or (2) small businesses' expenses related to advertising in local news outlets. After the first such law takes effect, the Secretary of the Treasury transfers from the fund to the general fund of the Treasury amounts equivalent to the credits allowed under qualifying laws, based on estimates with subsequent adjustments.

This section establishes the One-on-One Tutoring Trust Fund in the Treasury of the United States, to which amounts equivalent to one-third of taxes received under section 4286 of the Internal Revenue Code are appropriated for taxes received after December 31, 2025. Amounts in the trust fund are available without further appropriation to carry out the grant program established under section 6 of the Education Not Endless Scrolling Act.

This section establishes in the Treasury the Career and Technical Education Support Trust Fund, consisting of amounts equivalent to one-third of taxes received under IRC §4286 (i.e., taxes on certain air transportation between the United States and contiguous countries) after December 31, 2025. Amounts in the fund are available without further appropriation to carry out section 111 of the Carl D. Perkins Career and Technical Education Act of 1965 (i.e., allotments to states for career and technical education programs).

This section authorizes the Secretary of Education to award competitive grants to state educational agencies (SEAs), not later than 180 days after enactment, to provide funds to eligible schools—defined as elementary schools or secondary schools receiving funds under Title I of the Elementary and Secondary Education Act of 1965 (ESEA)—for individual tutoring programs for students. The Secretary must issue regulations and guidance specifying application requirements, grant periods and amounts, and requirements for the tutoring programs.

This section provides that, for FY2027 and each succeeding fiscal year, references in this section to the "amount appropriated under section 2307" or "amount appropriated for allotments under this section"—used to calculate reservations and state allotments for career and technical education (CTE) grants under the Carl D. Perkins Career and Technical Education Act of 2002—include the aggregate amount appropriated to the Career and Technical Education Support Trust Fund for the preceding fiscal year. (Thus, this expands the total funding pool for CTE state allotments, which support secondary and postsecondary workforce preparation programs.)