Murphy Introduces Landmark IRL Act Proposal To Combat Social Isolation And Hold Social Media Companies Accountable

WASHINGTON, D.C. - U.S. Senator Chris Murphy (D-Conn.) just introduced a new landmark bill-the In Real Life ("IRL") Act-as part of his policy agenda aimed at record-high rates of loneliness and distrust by holding social media companies accountable and investing in third spaces. The legislation would tax digital advertising revenue of only the very largest algorithmic-based social media corporations at 50%, redirecting funds to a newly-established Social Capital Fund for local communities to support the institutions, programs, and physical spaces that bring neighbors together in common cause.

"We don't have to accept the transition from in-person connection to online isolation. Massive social media platforms knowingly addict us to screens and harm our kids to boost their profits. These big tech companies have gotten a free pass for far too long, and the least they can do is pay to rebuild the spaces that actually bring us together-in real life," said Murphy.

The IRL Act has two components: imposing a digital advertising tax on the very largest social media giants, as well as establishing a new Social Capital Fund for local communities.

Under the IRL Act's digital advertising tax, the biggest social media corporations would pay a 50% rate on digital advertising revenues over $10 billion, with lower rates for revenues below that threshold and a $500 million exemption so the tax only applies to large platforms. Publishers like newspapers, television, and websites that are not algorithmic social media would not pay the tax. Even social media companies can avoid the tax by turning off their addictive algorithm, like the chronological feed that Facebook used to have that will now be an option for teenagers under Meta's recent legal settlement with states. Big social media conglomerates can also pay lower rates by breaking up into smaller companies.

Under the IRL Act's newly-established Social Capital Fund, revenues from the digital advertising tax would be deposited into a fund and distributed to local communities for the institutions, programs, and physical spaces that bring their residents together in common cause. These funds can revive rec sports programs and beautify local parks or other public spaces. Communities can support the arts and host festivals, as well as help parent teacher organizations at public schools and programs that teach how to use technology responsibly. It can keep the doors open at places that bring people together, such as public libraries and locally owned small businesses. Communities can fund programs and services open to the whole community offered by membership organizations like clubs, unions, and religious institutions within constitutional limits. Funding can also help spread the word about groups to join and places to volunteer.

Three-quarters of the Social Capital Fund goes directly to local and tribal governments using the same formula as the existing Community Development Block Grant. The remaining 25% is awarded competitively to the highest-impact programs proposed by local governments, tribes, charities, or membership organizations. The Department of Housing and Urban Development administers the Fund, evaluates the programs it supports, and highlights best practices for communities to learn from each other.

The bill is endorsed by numerous organizations and policy advocates to combat the loneliness epidemic, hold social media companies accountable, and revitalize community and trust.

"Loneliness and social isolation carry a serious public health and economic toll, yet we've built no sustained funding stream to address it. This legislation changes that by asking the platforms that profit from engagement-driven design to help fund the community infrastructure that rebuilds real connection. A Social Capital Fund financed by a tax on algorithmic social media advertising is a fitting and overdue mechanism: it ties resources for social connection directly to the industry whose business model has contributed to the crisis. The Foundation for Social Connection Action Network urges Congress to advance this bill as a serious, sustainable investment in the social fabric of American communities," said Andrew MacPherson, Founder and Board Chair of the Foundation for Social Connection Action Network.

"Thank you Sen. Murphy for introducing this important legislation. Social capital is rooted in a sense of belonging and KABOOM! believes that one of the places it begins is on the playground where children can run, jump, take risks, and learn to solve interpersonal conflicts, all in the context of being outdoors and around other kids. This bill creates a revenue stream which targets the addictive behaviors that generate billions in digital ad revenue while simultaneously rebuilding our nation's social capital by investing in the critical civic infrastructure, like playgrounds, that support our sense of community. Millions of kids will benefit from this dual approach, and we applaud the Senator for taking on this problem to create healthier environments for children and families," said Lysa Ratliff, CEO of KABOOM!.

"This fund will help communities of all sizes invest in much-needed civic infrastructure - the gathering places that are free and open to the public, including parks, town squares, play spaces, main streets, community centers and more - in ways that increase social connection, trust and the common good for all Americans. This is the infrastructure necessary for bolstering healthy civic life and a prosperous nation," said Bridget Marquis, co-convener of the Percent for Place Coalition.

"The IRL Act recognizes that parks, trails, schoolyards, and other civic spaces are essential to building stronger, more connected communities. When we invest in the places where people gather, play, recreate, and spend time together, we create more opportunities for connection and belonging. Trust for Public Land is proud to support this legislation and its vision for a country where everyone has access to the public spaces that bring people together and nurture social capital and connection," said Walker Holmes, Vice President of the Mid-Atlantic Region and Connecticut State Director at Trust for Public Land.

"Trails are more than transportation infrastructure, they are places where people encounter their neighbors, spend time outdoors and build connections to the communities around them. The East Coast Greenway encourages that kind of connection, linking communities and creating shared spaces where people can walk, ride and roll together. The Social Capital Fund recognizes the value of these places and would invest in trails and other public spaces that strengthen the relationships, trust and sense of belonging that hold communities together," said Niles Barnes, Deputy Director at East Coast Greenway Alliance.

"LISC applauds Senator Murphy's introduction of the IRL Act. We strongly support efforts to prioritize the development and stewardship of civic infrastructure such as parks, main streets, recreation facilities, and arts venues for community use. These investments are key to promoting thriving communities - great places to live, work, visit, do business and raise families," said Matt Josephs, Senior Vice President of Policy at Local Initiatives Support Corporation (LISC).

"The evidence is mounting that screen time makes us lonelier and more isolated, while spending time in public space with friends, family, and community is a prescription for long-term health. This legislation will ensure that these gathering places receive the funding they need to fulfill this vital role, while accounting for the true costs of digital advertising on our well-being," said Nate Storring, Co-Executive Director at Project for Public Spaces.

"Sen. Chris Murphy has done intrepid work drawing attention to the crisis of the common good, manifest in our national epidemic of loneliness and disconnection. With the IRL Act, he offers a bold and creative solution to reverse that epidemic and help restore the common good. He proposes to invest directly in our families and communities, and in the "bonds of affection" (Lincoln) that can unite Americans so we may continue our 250-year experiment in self-government," said Joe Waters, Co-Founder and CEO at Capita.

"On behalf of the Say Yes to Recess team we strongly support the IRL Act-a bold step toward reducing screen addiction and protecting young people and families. By holding tech companies accountable and investing in sports, arts, schools, libraries, and community programs, this bill helps replace endless scrolling with real connection, healthy development, and vibrant communities," said Kathryn Truman, Executive Director at the Say Yes to Recess Foundation.

"Loneliness is a social challenge and public health crisis of our times. As a society, we must recommit resources to the creation of lively, welcoming spaces that draw people out and bring them back together. Parks strengthen both mind and body. Children, families, and seniors in every corner of America deserve places to play, gather, and enjoy the outdoors," said Rose Harvey, Executive Director at New City Parks.

"Our nation's civic development is as important as its economic development. Just how we invest in economic infrastructure like roads and bridges, we must also invest in civic and social infrastructure like clubs, congregations, and associations, as well as the "third places" (like libraries and parks, etc.) in which they meet. This bill is a great step toward Congress finally taking American civic development seriously," said Pete Davis at Democracy Policy Network.

"Today's children are spending less time outdoors than any generation in history. A healthy childhood depends on real-life experiences in nature and space to explore, grow, and connect with others. At a time when social media competes for so much of their attention, we should be making it easier for children to get outside and spend time together. Sierra Club is proud to support Senator Murphy's In Real Life Act because every child deserves that chance," said Jackie Ostfeld, Outdoors for All Director at the Sierra Club.

"By taxing the engagement-driven ad model that fuels compulsive social media use, the IRL Act can discourage large technology companies from prioritizing a business model that too often harms users. We are especially glad the bill directs those funds to support organizations that share information about local civic life, filling information gaps that increasingly go unmet as local news outlets shutter," said Morgan Wilsmann, Policy Analyst at Public Knowledge.

"Every day, PTAs and other like-minded organizations work hard to support families, schools and communities and ensure they have everything they need to thrive. We thank Senator Murphy for his leadership and appreciate him introducing legislation that would provide funding to help community-serving organizations strengthen their impact," said Dr. Bill Datema, president of National PTA.

"Opportunity Finance Network supports the In Real Life Act and its recognition of the role of community development financial institutions (CDFIs) in strengthening communities across the country. CDFIs are proven partners in creating economic opportunities and we look forward to working through the Social Capital Fund to deploy capital to support civic infrastructure and institutions," said Dafina Williams, EVP, Chief Public Policy Officer and Head of Government Affairs at Opportunity Finance Network.

Read the text of the IRL Act here.

Read a summary of the IRL Act here.

Read a section-by-section explainer of the IRL Act here.