S 5518: Make AI Work for Americans Act

S 5518 in plain English: This bill would impose new taxes on large AI companies and digital advertisers to fund a dedicated 'Artificial Intelligence Horizon Fund,' providing a $30 billion repayable advance to support workforce training programs for Americans affected by AI-driven job displacement. Workers in these programs would earn at least $20 per hour, and at least $225 million per year starting in fiscal year 2027 would be directed toward training grants.

Stated purpose

The bill aims to create an Artificial Intelligence Horizon Fund to invest in worker training, entrepreneurship, and economic security programs, while reducing harms caused by the rapid adoption of artificial intelligence and automation.

Key points

• Creates a fund seeded with $30 billion (repayable advance) to help workers displaced by artificial intelligence
• Taxes large AI computing services at $1.10 per 1,000,000 units of computational processing
• Imposes a digital advertising tax on companies with U.S. ad revenue exceeding $50,000,000 and total U.S. revenue exceeding $1,000,000,000
• Requires training program participants to be paid at least $20 per hour, with individual training grants of at least $7,000
• Allocates at least $225,000,000 annually starting in fiscal year 2027 for workforce training under the fund

Arguments supporters make

• AI companies have profited enormously from technology that displaces workers, so it is fair to tax those profits and use the revenue to help affected workers and communities.
• Expanding unemployment benefits and job training gives working families a real safety net and a path forward as AI rapidly changes the job market.
• Investing in entrepreneurship and small business programs democratizes the economic gains from AI rather than concentrating them only among large corporations.

Arguments opponents make

• New taxes on AI and digital advertising could slow innovation, raise costs for businesses and consumers, and push investment or companies overseas.
• A $30 billion government fund managed by federal agencies may be inefficient or prone to misuse, with no guarantee the money reaches workers who need it most.
• Setting federal floors on unemployment benefits and training programs overrides state flexibility, forcing states to restructure systems that may already work well for their residents.

Tradeoffs

The bill raises revenue from AI-related industries to fund worker support programs, creating a tension between taxing a high-growth sector and maintaining incentives for innovation; it also sets nationwide minimums for unemployment and training programs, trading state-level flexibility for more uniform worker protections.

Current status in Congress: In committee.

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