AI Tax and Work Protection Act

H.R. 10044, the AI Tax and Work Protection Act, would create a new federal excise tax on companies that develop, sell access to, or modify large-scale "foundation model" AI systems, charging them based on either the value of AI tokens processed or revenue from AI services, with rates rising if national unemployment climbs above 5%. Research and nonprofit uses are exempted. Proceeds would flow into a new trust fund starting in fiscal year 2027.

That fund would finance a new Work Protection Administration within the Department of Labor, which would run a competitive grant program for state/local governments, tribal governments, and other eligible entities to create jobs in fields like child care, education, health care, elder care, housing, infrastructure, the arts, and local journalism. Grant-funded jobs would be required to pay prevailing or minimum wage, include federal-employee-comparable health coverage, and carry paid leave and family-leave protections, with rules against displacing existing workers.

The bill was introduced August 6, 2026, by Rep. Gregorio Casar (D-TX) with two cosponsors, and referred to the House Committees on Education and Workforce and Ways and Means. As an introduced bill, it would need committee action, floor votes in the House and Senate, and the President's signature to become law.

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