Tax on big social media ads funds local parks and community centers.

What it does

The bill puts a tax on large social media platforms. The tax starts at 10% for platforms making over $500 million from ads. It goes up to 50% for platforms making over $10 billion. The money goes into a new fund run by HUD. HUD gives grants to local governments and nonprofits. These grants pay for parks, libraries, community centers, and civic programs.

Who it affects

People in towns and cities benefit from new parks, libraries, and programs. Large social media platforms that use personalized ads pay the tax. Local governments and nonprofits get grants to run these programs.

One thing to notice

The tax only hits platforms that use personalized ads based on user data. Smaller or rural communities may have a harder time getting grants than bigger cities.

From the analysis of the bill text, linked under Primary records below.

Where it stands

• Sep 24, 2026 — Introduced · Congress.gov: “Introduced in Senate”
• Sep 24, 2026 — Referred to Senate Committee on Finance · Congress.gov: “Read twice and referred to the Committee on Finance”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Words to know

• tax — Money a company must pay to the government based on what it earns.
• HUD — The federal agency that handles housing and community development.
• grants — Money the government gives to groups or towns with no requirement to pay it back.
• civic — Related to a town or city and the people who live there.
• nonprofits — Groups that use money to help people or communities, not to make profit.