Main Facts
Senator Mark Kelly, D-Ariz., has introduced a major legislative proposal designed to address the widespread economic and workforce disruptions driven by artificial intelligence. The bill seeks to establish targeted taxes on the nation’s largest technology firms to generate federal revenue for workforce transition programs, entrepreneurship initiatives, and enhanced unemployment protections.
The core mechanism of Senator Kelly’s bill is the creation of the "AI Horizon Fund." This fund would be seeded with an initial $30 billion appropriation from the federal government, which would later be paid back to the U.S. Treasury over time. To replenish and sustain the fund, the legislation introduces three distinct taxes aimed at major technology companies:
- Digital Advertising Tax: A tax levied directly on digital advertising revenues generated by large tech firms.
- AI Usage Tax: A tax based on data generated through artificial intelligence usage.
- Excess Profits Tax: A specialized tax targeting "excess profits" earned by artificial intelligence companies.
Governance of the AI Horizon Fund would be assigned to a newly created oversight council. This council would comprise a diverse panel of artificial intelligence experts, including representatives from labor organizations, higher education institutions, and workforce development bodies.
According to the bill text, the revenue gathered from these technological taxes would be allocated to "expand economic security, quality jobs, and community benefits, while mitigating harms associated with increased adoption of artificial intelligence."
To achieve these workforce goals, the bill outlines three primary spending priorities:
- Human-Centric Career Pathways: The establishment of a competitive grant program to fund paid service-to-career pathways into professions that explicitly rely on human judgment, trust, physical presence, communication, and relationship-based work.
- Small Business and Entrepreneurship Support: Direct funding to bolster small business programs and foster entrepreneurship in communities navigating technological transitions.
- Expanded Safety Net Protections: A substantial expansion of unemployment benefits, establishing a federal minimum benchmark of 75 percent wage replacement for a duration of 26 weeks.
At the time of its introduction on Thursday, Senator Kelly’s bill had no co-sponsors in the U.S. Senate.
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| AI HORIZON FUND STRUCTURE |
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| INITIAL SEEDING: $30 Billion Treasury Appropriation (Repaid over time) |
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| REVENUE REPLENISHMENT (3 New Taxes on Big Tech): |
| 1. Digital Advertising Revenue Tax |
| 2. AI Usage Tax (Based on Generated Data) |
| 3. Excess Profits Tax on AI Firms |
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| GOVERNANCE: Oversight Council |
| (AI Experts, Labor Representatives, Higher Education Leaders, Workforce Dev.) |
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| ALLOCATION OF FUNDS: |
| • Paid Career Pathways (Human-centric roles: trust, judgment, physical presence) |
| • Small Business & Entrepreneurship Grants |
| • Enhanced Unemployment (Min. 75% wage replacement for 26 weeks) |
+-----------------------------------------------------------------------------------+Chronology of Legislative Actions and Proposals
The introduction of Senator Kelly’s bill represents the latest step in a multi-stage initiative to manage the economic consequences of artificial intelligence. The timeline of relevant policy and legislative developments unfolds as follows:
Last Fall
Senator Mark Kelly outlined his foundational vision for managing artificial intelligence by releasing a comprehensive policy plan. This plan previewed legislative ideas for funding worker protection programs, addressing clean energy requirements for technology infrastructure, and establishing guidelines for commercial and military AI safety.
June
Senator Bernie Sanders, I-Vt., introduced a separate legislative framework aimed at capturing the wealth generated by the artificial intelligence sector. Sanders’ bill proposed a one-time tax on artificial intelligence companies earning over $200 million in annual sales, structured as a 50 percent equity stake in stock. This equity would be placed into a sovereign wealth fund to pay dividends directly to taxpayers and support social programs.
August
National polling conducted by Gallup revealed a sharp rise in public anxiety regarding technological automation, showing that 27 percent of surveyed workers feared technology could make their jobs obsolete in the near future. The survey highlighted that these concerns were especially concentrated among younger demographics.
Tuesday
Senator Kelly delivered a floor speech in the U.S. Senate previewing the specifics of his impending legislation. During his address, Kelly emphasized that while artificial intelligence offers significant potential benefits, federal intervention is necessary to protect workers, stating that the public cannot rely on corporate benevolence.
Thursday
Senator Kelly officially introduced his legislation to the U.S. Senate floor. The bill formally established the framework for the $30 billion AI Horizon Fund and its associated Big Tech tax structures.
Supporting Data and Comparative Analysis
As Congress considers how to address the rapid rise of artificial intelligence, lawmakers have put forward differing approaches to taxation, corporate ownership, and safety net expansions.
Comparison of Legislative Frameworks
The proposals introduced by Senator Kelly and Senator Sanders offer two distinct models for redirecting wealth from the technology sector to the public. While both pieces of legislation target high-earning technology entities and currently lack co-sponsors, their mechanisms and economic structures differ significantly:
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| Feature | Sen. Mark Kelly's Proposal | Sen. Bernie Sanders' Proposal |
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| Primary Tax Base | • Digital Advertising Revenues | One-time stock equity tax on firms |
| | • AI Data Usage Volume | with >$200M in annual sales |
| | • AI Corporate "Excess Profits" | |
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| Government Ownership | None (No voting shares or corporate| 50% government equity stake |
| Stake | equity acquired) | in targeted AI corporations |
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| Initial Capitalization | $30 Billion Treasury Appropriation | Capitalized via corporate stock |
| | (To be repaid over time) | equity transfer |
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| Primary Vehicle | AI Horizon Fund | National Sovereign Wealth Fund |
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| Beneficiary Allocations| • Service-to-career grant pathways | • Direct dividend checks to citizens|
| | • Small business support | • Social programs (education, |
| | • 75% wage replacement for 26 wks | healthcare, housing) |
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| Co-sponsors | Zero | Zero |
+------------------------+------------------------------------+------------------------------------+Key Differences in Approach
- Equity vs. Taxation: Senator Sanders’ framework relies on acquiring direct voting shares and equity within artificial intelligence firms, effectively making the federal government a half-owner in major tech companies. In contrast, Senator Kelly’s bill relies strictly on continuous taxation of advertising, data usage, and excess corporate profits, leaving corporate ownership structures intact.
- Targeted Expenditures vs. Social Dividends: Sanders’ sovereign wealth fund focuses on direct financial dividend payouts to taxpayers alongside funding broad social imperatives like healthcare, education, and housing. Kelly’s AI Horizon Fund directs its resources specifically toward workforce retraining into non-automatable human careers, small business assistance, and standard unemployment compensation.
Economic and Public Data
The legislative momentum corresponds with data regarding public perception of automation. According to the August Gallup survey:
- 27% of total respondents expressed worry that technological advancements could make their specific jobs obsolete in the near future.
- The level of concern was noticeably higher among younger workers, who expressed greater anxiety about long-term career stability in an AI-driven economy.
Official Responses and Political Positioning
Floor Statements from Senator Mark Kelly
In his speech delivered on the Senate floor previewing the bill, Senator Kelly framed the legislation as a balanced measure aimed at harnessing technological innovation while protecting the American workforce from corporate neglect.
"AI could unlock benefits for the American people, from curing diseases to solving big engineering problems that unlock new industries and new jobs," Kelly stated. "But we can’t expect corporations to help us out of the goodness of their hearts."
Response from Senator Kelly’s Office
Following the bill’s formal introduction, requests were submitted to Senator Kelly’s office seeking revenue projections regarding how much money the proposed digital advertising, usage, and excess profit taxes were expected to bring in annually. Kelly’s office did not immediately respond to requests for comment regarding these financial estimates.
Political Landscape and Party Dynamics
The introduction of Kelly’s bill comes at a time when the Democratic Party is actively attempting to define its official policy stance on artificial intelligence ahead of upcoming midterm elections and future election cycles. Currently, Democrats have not coalesced around a unified, single legislative plan regarding either AI safety protocols or economic mitigation strategies.
At the same time, public focus on artificial intelligence has intensified. This growing public awareness has been driven by warnings from technology industry leaders as well as recent reports detailing unprompted hacking incidents carried out by autonomous AI agents.
Politically, the move places Senator Kelly—who is frequently discussed as a potential candidate for the 2028 Democratic presidential nomination—at the center of national debate over technology regulation, labor protections, and corporate taxation.
Systemic Implications for the Economy, Energy, and Safety
Senator Kelly’s legislation, alongside his broader policy framework, outlines several systemic implications for the workforce, energy infrastructure, and national security.
Strategic Transition Toward Human-Centric Employment
A major policy objective embedded within the AI Horizon Fund is the intentional redirection of federal workforce funds toward fields that are naturally resilient to automation. By directing grants into "service-to-career pathways into jobs that rely on human judgment, trust, physical presence, communication, and relationship-based work," the legislation seeks to insulate the labor market against displacement by software and autonomous systems.
Furthermore, by raising state-level unemployment safety nets to guarantee a minimum 75 percent wage replacement for 26 weeks, the bill attempts to provide a financial cushion for displaced workers undergoing career retraining.
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| HUMAN-CENTRIC SKILL RETENTION |
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| Focused areas supported by Horizon Fund grants: |
| |
| [1] Human Judgment [4] Communication |
| [2] Interpersonal Trust [5] Relationship-Based |
| [3] Physical Presence Work |
+---------------------------------------------------+Energy Grid Resilience and Infrastructure Demands
Beyond direct labor dynamics, Senator Kelly’s broader artificial intelligence strategy addresses the physical infrastructure required to operate modern AI technologies. The expansion of massive AI data centers requires significant electrical power. Kelly’s broader policy plan highlights the need for dedicated clean energy investments and enhanced electrical grid resilience to ensure national power networks can support the computing demands of data centers without compromising energy stability.
Trust, Commercial Safety, and Military Integration
The legislative push coincides with heightened public and governmental concerns over AI trust and security. Reports of unprompted hacking by AI agents and safety warnings from tech developers have elevated safety discussions across the public sphere.
Senator Kelly’s broader framework touches directly on these issues, raising critical questions about commercial AI safety, user trust, and the integration of artificial intelligence tools within military operations. As Congress debates these competing policy models, lawmakers face the task of balancing corporate technological growth against worker security, infrastructure resilience, and national safety protections.
