The human T-cell leukemia virus-encoded Tax protein is a potent activator of many viral and cellular genes transcribed by RNA polymerase II. We find that both chromatin and cell extracts derived from human T-cell leukemia virus type 1-infected human T lymphocytes support higher levels of 5S rRNA and tRNA gene transcription than chromatin or extracts from uninfected T lymphocytes. The viral protein Tax was likely responsible for this higher level of class III gene transcription, as purified Tax was found to stimulate both genes when added to the uninfected cell extract or in reconstituted systems. Both limiting-component transcription assays and DNA binding assays identified the class III gene transcription factor TFIIIB as the principal target of Tax activity. Surprisingly, we find that Tax increases the effective concentration of active TFIIIB molecules. These data suggest that Tax stimulates RNA polymerase III-dependent gene expression by accelerating the rate and/or extent of transcription initiation complex assembly.Human T-cell leukemia virus type 1 (HTLV-1) is the causative agent of an aggressive and fatal malignancy called adult T-cell leukemia (39; for a review, see reference 21). The virus is also associated with a variety of additional clinical disorders in humans, including a neurodegenerative disease called tropical spastic paraparesis/HTLV-1-associated myelopathy (31). The pathogenesis of HTLV-1 appears directly linked to the virally encoded transcriptional activator protein Tax. Tax is essential to the life cycle of the virus, as it strongly stimulates RNA polymerase II (pol II)-dependent transcription of the HTLV-1 genome, thus leading to efficient viral replication (14,15,19,23,44,48). Tax has also been shown to deregulate the expression of a wide variety of class II cellular genes, leading to the hypothesis that HTLV-1-associated pathogenesis may result from the highly pleiotropic deregulation of cellular gene expression by Tax.Tax does not bind DNA directly but instead utilizes a variety of structurally unrelated cellular DNA-binding proteins to mediate transcriptional deregulation. For example, Tax strongly up-regulates HTLV-1 gene expression apparently mediated through the cellular protein CREB, a member of the basic leucine zipper (bZIP) family of transcription factors (7,12,20,59). Tax also stimulates the expression of a wide variety of class II viral and cellular genes mediated through additional cellular transcription factors. These processes include the transcriptional up-regulation of human immunodeficiency virus, interleukin 2, and interleukin 2 receptor ␣ genes mediated through members of the NF-B family of proteins (5, 10, 41, 45) and transcriptional up-regulation of the c-fos, Krox-20 and Krox-24 genes mediated through serum response factor (1, 2, 22). Interestingly, the basic helix-loop-helix proteins, which play critical roles in cellular proliferation and differentiation, appear to be involved in Tax-mediated repression of gene expression (51).The precise molecular steps leading ...