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Gov. JB Pritzker proposes new social media fee to help fund Illinois public schools

By
Todd Feurer
Todd Feurer
Web Producer, CBS Chicago
Todd Feurer is a web producer for CBS Chicago. He has previously written for WBBM Newsradio, WUIS-FM and the New City News Service.
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Todd Feurer

/ CBS Chicago

Gov. JB Pritzker is proposing a statewide fee on social media companies in an effort to raise $200 million a year for education, as the state grapples with a $2 billion budget shortfall.

The proposal would require social media platforms to pay a monthly fee based on the number of active users in Illinois, with larger companies paying higher fees.

The tiered rate structure would charge social media platforms with 100,000 to 500,000 users in Illinois 10 cents per month per user over 100,000. Platforms with 500,000 to 1 million users would be charged $40,000 per month plus 25 cents per month for each user over 500,000. Social media companies with 1 million or more users in Illinois would be charged $165,000 per month, plus 50 cents per month for each user over 1 million.

The legislation would prohibit social media companies from passing along the fee to users.

"Social media algorithms have been proven to create mental health issues in adolescents and foster polarization and misinformation in society as a whole. Those companies are profiting from online engagement of Illinois consumers, and they currently contribute nothing to ameliorate the negative effects of their platforms," Pritzker said in prepared remarks for his annual State of the State address in Springfield on Wednesday.

Pritzker's office estimated the fee would generate $200 million a year to support elementary and high school education.

"Parents and kids deserve to have better funded schools. If social media giants are going to feed off of Illinois families, they ought to support Illinois families," Pritzker said.

The fee would be similar to a new social media tax that the Chicago City Council approved as part of the city's 2026 budget. Starting Jan. 1, the city began taxing social media companies 50 cents per month per active user over 100,000 in Chicago.

The revenue from Chicago's social media tax will be dedicated to funding mental health clinics and the city's mental health crisis response program.

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