With the 120th Congress in sight, several lawmakers released comprehensive AI frameworks. Congress is also scrutinizing data centers’ environmental compliance, the tax credits behind the AI boom, and the sector’s cybersecurity practices.

Meanwhile, the Trump Administration is pursuing its own agenda. Despite its general light touch approach, the White House Super Intelligence Task Force has mandated notification and remediation of any frontier model security incident involving federal government systems. The Administration’s new efforts to enlist private companies to conduct government-authorized cyber operations against transnational criminal groups, as well as to accelerate of quantum capabilities, are slowly coming into focus.

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Congress

Hearings

• Congress returns in November after the midterm elections.

Legislation

• Senate Commerce Committee Ranking Member Maria Cantwell (D-WA) released a comprehensive AI governance framework based on six principles, including: The federal government should establish safety standards; developers must test and audit their models frequently; companies must be transparent about their products; government and industry should find AI partnerships; kids and workers should be protected; and the United States needs to lead global cooperation on AI. (Press Release)

• Sen. Ruben Gallego (D-AZ) released a broad economic policy five-pillar plan called, “Saving the Middle Class and Restoring the American Dream.” The plan includes pillar 3, titled “Restoring Worker Trust in Government in the Age of Artificial Intelligence” to create a public service jobs program to allow AI-displaced workers to serve the public, funded by taxing AI. The plan would also require industry and workers to negotiate over AI and create a corporate “robot” tax to discourage job dislocation and maintain company payroll contributions for automated-away jobs. (Press release)

• Rep. Lori Trahan (D-MA) released a discussion draft of the Clear Liability for Artificial Intelligence Misconduct (CLAIM) Act to hold developers liable for AI misconduct, allow courts to presume an AI system acted with the state of mind a person taking the same actions would have had, establish a federal cause of action, and set a federal floor in relation to state law. Trahan is accepting comments on the proposal. (Press release)

• Reps. Troy Carter (D-LA) and Bennie Thompson (D-MS) reintroduced the Cybersecurity and Infrastructure Security Agency (CISA) Securing Artificial Intelligence (AI) Task Force Act to establish a task force within the Cybersecurity and Infrastructure Security Agency in the Department of Homeland Security dedicated to addressing safety and national security challenges posed by AI. (Text)

• Sens. Gary Peters (D-MI) and James Lankford (R-OK) introduced the Transparent Automated Government (TAG) Act to require federal agencies to notify individuals when they are interacting with or subject to critical decisions made using certain AI or other automated systems and to direct agencies to establish a redress process ensuring there is a human review of critical decisions made using AI systems that may negatively affect individuals. (Press release)

Correspondence

• Sens. Elizabeth Warren (D-MA) and Richard Blumenthal (D-CT) sent a letter to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, White House Chief of Staff Susie Wiles, National Cyber Director Sean Cairncross, Director of the Office of Science and Technology Policy Michael Kratsios, and Office of Management and Budget Director Russell Vought requesting information about the involvement of the artificial intelligence industry in influencing the administration’s AI regulatory framework. (Letter)

• Ranking Member of the Senate Environment and Public Works (EPW) Committee Sheldon Whitehouse (D-RI) and Mark Kelly (D-AZ) led a letter with Sens. Chris Van Hollen (D-MD), Ron Wyden (D-OR), Tammy Duckworth (D-IL), Michael Bennet (D-CO), Ruben Gallego (D-AZ), Edward Markey (D-MA), and Adam Schiff (D-CA) urging Environmental Protection Agency’s (EPA) Administrator Lee Zeldin to withdraw a proposed rule to eliminate the 30-day mandatory public notice period that allows communities to provide input on proposed facilities, such as data centers, and to disclose any documents showing that the agency communicated with data center owners ahead of the proposal. (Letter)

• Whitehouse and Kelly also led letters with Sens. Ron Wyden (D-OR), Martin Heinrich (D-NM), Tammy Duckworth (D-IL), Ruben Gallego (D-AZ), and Adam Schiff (D-CA) to Anthropic, AWS, Fermi, Google, Joule, Meta, Microsoft, OpenAI, and xAI urging they commit to maintaining current public participation standards regardless of the EPA rule’s outcome, explain their own policies governing community engagement before constructing data centers, and disclose any documents showing that the companies communicated with EPA, the White House, or other federal agencies ahead of the proposal. (Letter)

• Sen. Peter Welch (D-VT) sent a letter to IRS CEO Frank Bisignano urging the Internal Revenue Service ensure companies are not using the research and experimentation tax credit to subsidize the construction of AI data centers. (Letter)

• Sen. Tina Smith (D-MN) sent a request to the Joint Committee on Taxation for an analysis of the extent to which OBBBA tax breaks went to data center development. (Letter)

• Reps. Brad Sherman (D-CA), Valerie Foushee (D-NC), Josh Gottheimer (D-NJ), Ted Lieu (D-CA), Chris Pappas (D-NH), Greg Landsman (D-OH), April McClain Delaney (D-MD), and Sarah Elfreth (D-MD) sent a letter to Senate and House Appropriations Committees leadership urging federal funding for the Center for AI Standards and Innovation (CAISI) be increased above the House Committee Report level of $15 million for FY27. (Letter)

Publications and Events

• Sens. Elizabeth Warren (D-MA), Richard Blumenthal (D-CT) and Chris Van Hollen (D-MD) released a report accusing Amazon, Google, Meta, Microsoft, CoreWeave, Digital Realty, and Equinix of using nondisclosure agreements to limit public input and seeking tax breaks from states while showing little evidence of significant economic benefit. (Report)

• Rep. Raja Krishnamoorthi (D-IL) published an op-ed in CyberScoop entitled, “Quantum Computers Could Break Today’s Encryption. Washington Needs to Prepare Now.” He says, “China is not standing still. Through my work on the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, I have observed that America retains an enormous innovation advantage. However, the U.S.-China Economic and Security Review Commission has warned that Beijing is likely pursuing quantum capabilities that could threaten existing encryption. China’s 15th Five-Year Plan identifies quantum technology as a future industry, while three state-backed regional venture funds, totaling roughly $17.5 billion, include quantum among the strategic technologies they are intended to support. The amount specifically allocated to quantum has not been disclosed. Waiting would be a mistake, regardless of China’s current quantum progress. America has repeatedly recognized technological vulnerabilities too late. The nation was slow to understand how foreign adversaries could exploit social media and discovered critical computer system weaknesses only after foreign governments penetrated them. Congress should not repeat those mistakes.” (Op-ed)

• The Congressional Research Service published a report entitled “Pentagon-Anthropic Dispute over Autonomous Weapon Systems: Potential Issues for Congress.” (Report)

Trump Administration

White House

• Following Anthropic’s notification to the State Department that a testing model had submitted non-immigrant visa applications earlier this year, White House Super Intelligence Force leaders responded calling the incidents an “unauthorized and fraudulent use of government and other systems” and are now mandating AI companies notify the federal government and correct security incidents. A Super Intelligence Force statement said, “This notification and remediation process is not optional… It is a critical national security obligation.” (Axios)

• President Trump signed an executive order to rename artificial intelligence as “super intelligence” and require the Assistant to the President for Science and Technology (APST) to submit to the President proposed legislative language to establish a federal definition of “Super Intelligence” within 60 days. (Federal Register)

• News outlets published the Task Force on Superintelligence (TFSI) charter, which includes a mission to “coordinate between various agencies to undertake such initiatives as necessary to identify and address threats to the public, protect America’s leadership position at the frontier of SI development, ensure the defense of the nation and the prosperity of the American people, and develop plans for responding to SI-enabled threats to our society, while preventing overregulation and regulatory capture that would stifle innovation and competition” and a requirement to “commission a report to study the risks of SI, focusing on potential threats to civil liberties, impacts on the offense-defense balance in cybersecurity, feasibility of biological misuse, incident response, model control and standards, and impacts of overregulation and regulatory capture.” The Task Force must also “review the current protocols and mechanisms in place for labs to provide early warnings and systemized notifications to the government of breaches, hacks, jailbreaks, and other issues, and recommend ways to improve the government’s response capacity under existing authorities.” (Charter)

• The White House hosted a summit entitled “Science: A New Golden Age” where the Administration announced a set of science initiatives representing over $6 billion in investments and public-private partnerships across multiple agencies focused on artificial intelligence and quantum computing. (Fact sheet)

• At the summit, President Trump gave the National Medal of Science to Elon Musk, Sergey Brin, Jensen Huang, Lisa Su, Michael Dell, and Satya Nadella. (Press release)

Department of Homeland Security

• Acting Executive Director of Homeland Security Investigations John Condon and head of the Department of Justice Computer Crime and Intellectual Property Section James Silver were reportedly named to lead the Administration’s initiative to implement the President’s executive order on combating cybercrime through U.S. private sector tech firms waging digital attacks on foreign cyber adversaries. (Politico)

Department of War/Defense

• The Office of the Under Secretary of War for Research and Engineering announced $350 million in new initiatives on national security-related quantum computing capabilities. (Press release)

Government Accountability Office (GAO)

• The GAO published a report entitled “Quantum Computing: Federal Actions Needed to Prepare for Emerging Cyber Threat.” According to the report, “GAO made 89 recommendations to 23 agencies to, among other things, establish and implement processes to develop inventories of vulnerable cryptography and identify funding for post-quantum cryptography. Twelve agencies agreed with GAO’s recommendations, two partially agreed, seven neither agreed nor disagreed, and one disagreed with three of its four recommendations. GAO maintains that all recommendations are warranted.” (Report)

Noteworthy Quotes

ADMINISTRATION

White House

• President Trump posted “The White House considers anyone that uses the term, ‘Artificial Intelligence,’ as opposed to the highly accepted new and more accurate term, ‘Super Intelligence,’ THE ENEMY!”

• Office of Personnel Management Scott Kupor said, “The worst thing for us to do would be to assume a static set of knowledge that allows us to put a regulatory schema in place that then has unintended consequences… Look, we live in D.C. There’s nothing that’s not political in this town. People have different views and that’s totally fine. Our obligation is to demonstrate to the American people that this is good and also that we take the anxieties and the concerns seriously.” He added, “At the end of the day there is no daylight between the president and anyone else ... we need to win.” (Axios)

CONGRESS

White House Super Intelligence Force

• Senate Select Committee on Intelligence Vice Chair Mark Warner (D-VA) issued a statement on President Trump appointing Director of National Intelligence Jay Clayton to also lead the new Super Intelligence Force, saying, “Artificial intelligence is one of the defining national security challenges of our time, and I welcome the administration recognizing that this technology requires serious, sustained attention at the highest levels of government. But creating a new title is not a substitute for having a coherent strategy. So far, the administration has resisted meaningful safeguards without offering a serious alternative for addressing the national security risks posed by increasingly powerful AI systems. We still do not know what authority this new role will have, whether it will include developing safety standards or reviewing the most advanced models, or how it fits into the administration’s broader approach to AI. That lack of clarity is especially concerning as leading AI companies themselves are confronting increasingly capable systems that can evade safeguards and exploit cybersecurity vulnerabilities. There is real bipartisan interest in Congress in getting this right. I hope this appointment is an opportunity for the administration to move beyond slogans and toward a serious, coordinated national strategy for AI. As I have said repeatedly, that coordination must include the Intelligence Community, where some of our nation’s foremost technical experts on cyber reside. And as Vice Chairman of the Senate Intelligence Committee, I look forward to working with Director Clayton on ensuring the United States stays ahead of China and other adversaries, strengthening the security and resilience of our most advanced AI systems, and establishing rigorous testing and safeguards so that increasingly powerful systems remain secure, reliable, and under human control.” (Press release)

• Rep. Don Beyer (D-VA) posted “The American people want smart regulation on AI, and they’re rightly concerned about safety and transparency. Giving this job to the Director of National Intelligence indicates - again - that Trump takes neither the risks of AI nor the DNI’s national security role seriously.”

• Rep. Ted Lieu (D-CA) said, “The more that the Trump administration says ‘we’re going to do a hands-off approach,’ the more the states are going to come in and fill that vacuum.” (Punchbowl)

AI Bailout

• On any future bailout for the AI industry, Sen. Ruben Gallego (D-AZ) said, “If there’s any AI company that expects some type of bailout, they better start coming up with other plans.” (Punchbowl)

• Sen. James Lankford (R-OK) said, “This is not something that Congress needs to go in and be able to manage.” (Punchbowl)

• Sen. Adam Schiff (D-CA) said, “One of the theories that I’ve heard, and I’m trying to evaluate, is maybe it’s not the banks that are most at risk. Maybe it’s the investment houses that have put so much money into this, and also have money in pension funds. And our pension funds now are going to be at risk of collapse. Are public employees going to be coming to Congress to say you’ve got to save these big investment houses, because if they go under, we go under?” (Punchbowl)

• Schiff also said, “The risk to our financial system, the risk that we’re asked to bail out entities again because they’re too big to fail — there’s not going to be much appetite for that.” (Punchbowl)

Data Centers

• Rep. James Clyburn (D-SC) posted “Americans: I’m worried about data centers driving up my electricity bills and AI threatening my job security. Trump: If you don’t call AI Super Intelligence, you are the enemy!”

• Rep. Alexandria Ocasio-Cortez (D-NY) posted “On Tuesday, GovKathyHochul RepPatRyanNY and I had the opportunity to speak with farming communities and spotlight a New York State moratorium on data center construction. We must hold Big Tech companies accountable for maintaining our air, water, and climate quality.”

• Sen. Elizabeth Warren (D-MA) posted “Trump and Republicans handed YOUR tax dollars to Big Tech companies like Meta and Amazon. So how much of your money is subsidizing their data centers and AI spending? You deserve the truth. I’m pushing these companies – the same ones that are donating to Trump – for answers.”

• Sen. Elissa Slotkin (D-MI) posted “We need to make clear to the public that corruption at the top is taking money directly out of their pockets. When Trump gains, you lose. For example, electricity bills keep climbing. That’s because AI companies are building data centers that guzzle power, and President Trump is giving them tax breaks to do it.”

• Rep. Rich McCormick (R-GA) posted “RepSuhas and I recently sat down with ASP for a productive discussion about building the computing infrastructure America needs to lead the next generation of innovation. America can lead in AI. We can build the infrastructure to power it. And we can do it responsibly.”

AI Safety

• Senate Intelligence Committee Vice Chair Mark Warner (D-VA) said, “We don’t have to accept the greatest dangers AI poses in order to reap the benefits.” (Politico)

• In expressing support for kill switches for artificial intelligence models, House Energy and Commerce Committee Chair Brett Guthrie (R-KY) said, “That’s certainly one thing we absolutely need to do. If [a model] goes rogue, you can stop it.” (Punchbowl)

• On a kill switch, Rep. Ted Lieu (D-CA) said, “It doesn’t actually slow down innovation. Just make sure that if your AI model goes berserk, you can shut it down.” (Punchbowl)

• On the proposal from Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA) on mandatory evaluations for frontier companies, House Energy and Commerce Committee Chair Brett Guthrie (R-KY) said, “Sections of that bill, we can work together on.” (Punchbowl)

• Guthrie also said, “Everybody wants to just kind of stop, and China’s not going to stop. So we have to say, ‘all right, what’s the immediate threat? Cybersecurity, bioterrorism,’ and work with that.” (Punchbowl)

• Rep. April McClain Delaney (D-MD) posted “When AI can be used to develop bioweapons, Congress cannot afford to sit back. I’m pushing for clear standards, early detection, and strong guardrails. We need to invest in our scientists and make safety a priority. Our health and national security depend on it.”

• Sen. Jim Banks (R-IN) posted “InsideAIPolicy: ‘Sen. Jim Banks (R-IN).. has written to Defense Secretary Pete Hegseth and [OMB] Director Russell Vought praising their [AI] deployment policies while urging them to focus on insider threats to AI systems -- including.. current risk mitigation efforts.’”

• Sen. Adam Schiff (D-CA) posted “When AI undermines our national security, a pinky swear won’t cut it. We need commonsense guardrails before it’s too late.”

• Rep. Jay Obernolte (R-CA) posted “The creation of the new White House task force on advanced AI is an important step toward ensuring America remains the global leader in this transformative technology while addressing the risks posed by the most advanced systems. Our bipartisan House Task Force on Artificial Intelligence made clear that getting this balance right requires a risk-based approach that addresses serious threats without stifling American innovation. That same principle is at the heart of my bipartisan FRONTIER Act, and I look forward to working with the Administration as it develops its recommendations.”

• Rep. Jay Obernolte (R-CA) posted “AI is developing rapidly, with the potential to benefit many sectors of our economy and society. As these systems grow more capable, Congress needs to understand the risks they present and ensure developers have appropriate processes to identify and address them. I recently joined CBS Los Angeles to discuss how my bipartisan FRONTIER Act would establish guardrails for the most advanced AI models without stifling American innovation.”

• Rep. Rich McCormick (R-GA) posted “How do we stop AI from attacking us? By embracing AI security. As AI becomes more powerful, the answer isn’t to slow down American innovation. It’s to make sure security advances right alongside it. nvidia’s OpenShell is a great example of that approach: building stronger protections around AI systems while still giving developers room to innovate. America should lead the AI race — and we should lead in securing it, too.”

• Rep. Joe Courtney (D-CT) posted “With the growing number of incidents involving rogue AI agents, Congress must pass commonsense safeguards to protect the public. Last week, I officially became a cosponsor of the bipartisan AI Kill Switch Act, a bill to establish third-party protections against rogue AI agents. We need safeguards that ensure AI remains under human control.”

• Rep. Josh Gottheimer (D-NJ) posted “I hope that the new administration’s new AI task force takes their responsibilities seriously. Regardless, Congress needs to act and put in place clear guardrails and rules of the road — including mandatory preemployment testing to protect our national security, cyber security, biosecurity, and critical infrastructure.”

• Sen. Bernie Sanders (I-VT) posted “Mr. Altman: What ‘bad things’ should we accept to advance AI? Losing tens of millions of jobs? A mass surveillance state? A mental health crisis for our kids? A global financial crisis? Mass extinction? Let’s not wait to find out. Pause advanced AI NOW!”

• Sen. Elizabeth Warren (D-MA) posted “NEW: Reports reveal Trump is letting Big Tech write its own AI rules. OpenAI, Google, and Anthropic said the rules were too strict. Trump made them voluntary. Then Musk and Zuckerberg said they were too harsh. Trump cut the 90-day review to 30 days. I’m pushing for guardrails.”

• Sen. Bernie Sanders (I-VT) posted “According to a new Quinnipiac poll: 91% of Americans think it’s important to put guardrails on AI; 73% worry AI could threaten humanity; 72% oppose new data centers in their community. So what have Republicans in Congress done to regulate AI over the past two years? NOTHING.”

• Rep. Greg Landsman (D-OH) posted “Congress needs to pass a national framework on AI. How our bills on AI and data centers will protect our communities”

• Rep. Brad Sherman (D-CA) posted “We must immediately do more to address the existential threats that dangerous AI systems already pose. I’m leading my colleagues in urging an immediate and significant increase in funding for AI safety. The $15 million currently proposed for the Center for AI Standards and Innovation (CAISI) is ridiculously inadequate to evaluate increasingly powerful AI systems.”

AI Accountability

• Rep. Lori Trahan (D-MA) posted “When someone breaks the law and hurts you, you can take them to court. That shouldn’t change just because the wrongdoer is an AI agent. Developers have already built systems capable of acting on their own and causing real damage. The CLAIM Act will ensure they answer for what their systems do.”

• Rep. Glenn Ivey (D-MD) posted “AI is changing everyday life for everyday people, yet they still don’t have a seat at the table. We need real oversight and accountability that puts people first. Innovation cannot come at the expense of the people it’s supposed to serve.”

• Rep. Pramila Jayapal (D-WA) posted “Former FTC Chair Lina Khan is absolutely right. We need to enforce existing laws on the books so AI companies and executives don’t continue to operate without accountability. Congress must also regulate AI just like we have historically done with other emerging industries.”

• Sen. Chris Van Hollen (D-MD) posted “Or we could hold you accountable for the harm you cause. Just because the Trump admin won’t lift a finger doesn’t mean big AI should get away with putting profits over people.”

Privacy and Security

• Rep. Yassamin Ansari (D-AZ) posted “68,000 people exposed. Hackers with an open-source AI tool. No country can fight this alone. The U.S. and China must cooperate on AI security now, before our financial system is next.”

• Rep. Marlin Stutzman (R-IN) posted “Flock cameras are a breach of privacy and cannot continue to go unregulated. That being said, this recent anti-Flock push by frontline Democrats to get something done on the matter feels more to me like a ploy before midterms than it does an actual want to protect Americans.”

• Rep. Ilhan Omar (D-MN) posted “Flock cameras track your every move. It’s creepy, dangerous, and raises serious civil rights concerns. Big Tech is pushing us toward an AI surveillance state. Americans deserve privacy, not unchecked surveillance. Ban Flock NOW.”

• Rep. Val Hoyle (D-OR) posted “Innovation should never come at the expense of workers. The proposed sale of Spirit Airlines’ internal data to Google is raising alarm bells around workers’ privacy. I’m calling on Google to implement strict safeguards to protect workers’ sensitive information in this transaction.”

• Rep. Steven Horsford (D-NV) posted “Innovation cannot come at the expense of workers’ privacy. SenWarren and I are leading 119 of our colleagues from both parties and both chambers of Congress in urging Spirit Airlines and Google to protect workers’ sensitive personal information from identification, profiling, and misuse. Nearly 1,000 former Spirit Airlines employees in Nevada could be impacted. Their personal information should not be sold to train AI without strong, enforceable safeguards in place.”

AI in Health Care

• Rep. Pramila Jayapal (D-WA) posted “The old attacks (costs too much, not being able to see the same doctor, etc.) don’t work anymore because private insurance is denying care, using AI to overrule doctors, and giving Americans surprise bills on top of already unaffordable co-pays, premiums and deductibles.”

• Rep. Rich McCormick (R-GA) posted “I joined TGowdySC to talk about what AI can do for patients. As an ER doctor, I can tell you the paperwork and the delay are not what get people better. Used right, AI gives doctors back time with the patient and helps catch what a tired human eye can miss. The goal is simple. Put patients and their doctors in charge, and let the technology serve them.”

• Rep. Suzan DelBene (D-WA) posted “Since Trump’s AI Medicare experiment began, it has led to needless delays & denials in care for Washington seniors. New documents reveal the administration wants to apply it to cancer treatments & air ambulances next – things that cannot wait days for answers. I’m moving to force the release of information about this program so we can finally get the whole story.”

• Rep. Greg Stanton (D-AZ) posted “AI shouldn’t decide whether you get the care your doctor ordered. But under the Trump administration’s WISeR initiative, that’s exactly what’s happening. AZ physicians report spending hours on the phone overturning wrongful denials while patients are stuck waiting for treatment.”

Workforce

• Sen. Ruben Gallego (D-AZ) posted “AI companies are making a fortune right now. Working people can’t get left behind. My plan is simple: tax AI companies and data centers, then use that money to put Americans to work in a New Deal-style public service jobs program. We did it before and it helped build this country. We can do it again.”

• Sen. Ruben Gallego (D-AZ) posted “AI is about to change a lot, and we’re not ready for it. We have to get ready, fast, and we can’t leave working people behind. That’s why I’m also pushing for a New Deal-style public service jobs program, funded by taxing AI, that would put people to work helping their communities—from caregiving to neighborhood construction to little league coaching. And it’s why I’m pushing for a “robot” tax to put a stop to big business shifting jobs away from humans.”

• Sen. Dave McCormick (R-PA) posted “A year ago, ZitoSalena and I went underground at the Enlow Fork Mine in my native Washington County. I saw how AI and modern safety gear have changed the job. This corner of Pennsylvania has powered America for generations, and it’s not done yet.”

• Sen. Ted Budd (R-NC) posted “When implemented responsibly, AI lets us do more with the same workforce—not the same work with fewer people. We need better data on how these technologies are changing the workforce so we can prepare Americans for the new jobs & economic growth AI will create.”

Miscellaneous

• On passage of AI regulation next year, Rep. Don Beyer (D-VA) said he was “confident that will change, and that the next speaker, the next majority leader, the next vice chair of the Democratic Caucus will be very committed to putting something on the ground.” (Politico)

• On canceled donations to prominent AI PACs, Rep. Greg Casar (D-TX) said, “The tables have turned on AI preemption, on data centers, on AI safety, and now on AI super PACs. The people are beating back the money.” Casar added, “We’ll hold them accountable if they start to try to hide their money because they realize their money being out in public is toxic.” (Punchbowl)

• Rep. Rich McCormick (R-GA) posted “Congratulations to my good friend jensenhuang on receiving the National Medal of Science! Jensen’s visionary leadership at NVIDIA has helped position America at the forefront of artificial intelligence and advanced computing, strengthening our technological competitiveness and national security. A well-deserved honor for a true leader in American innovation!”

• Rep. Raja Krishnamoorthi (D-IL) posted “I wrote in CyberScoop about a growing threat Washington is overlooking: quantum computers could break the encryption protecting our financial records, military communications, and national security secrets. Foreign adversaries can steal that data today and decrypt it later. Congress must act now.”

• Sen. Tim Kaine (D-VA) posted “Trump playing silly word games while wars and tariffs punish everyday folks? Plus . . . it should be ‘anyone WHO uses the term’ not ‘THAT uses the term.’ Unless he’s including bots and AI agents as the ENEMY now. Paranoid sad sack.”

• Rep. Pat Fallon (R-TX) posted “It doesn’t even need to be AI: legacy media like CNN journos find any reason to make excuses for terrorists.”

• Rep. Thomas Massie (R-KY) posted “Artificial Intelligence is a term historically reserved for politicians.”

• Rep. Brittany Pettersen (D-CO) posted “Romance scams cost Americans over $1 BILLION every single year, and with AI, these scams are getting even more sophisticated. That’s why I passed the Romance Scam Prevention Act to hold bad actors accountable and protect Coloradans. I’m proud this is my 6th bill passed into law this Congress — proving you can stand strong against this administration and still get important work done.”

What I’m Reading This Week

• Sam Altman to Decoded: ‘The world should accept some bad things happening’ for the benefits of AI, Christine Mui and Brendan Bordelon, Politico.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

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Driving the week in AI federal policy, President Donald Trump and 31 industry leaders signed a “morally binding” accord in which the companies pledged to voluntarily regulate their own AI models. In addition, Trump announced Jay Clayton will lead a newly-created Super Intelligence Force, while also remaining in his current role as Director of National Intelligence.

On Capitol Hill, last-minute efforts to move several AI bills met resistance. Senate Commerce Chair Ted Cruz (R-TX) blocked a vote on the Artificial Intelligence Risk Management and Security Act from Sens. Mark Warner (D-VA), Brian Schatz (D-HI), and Andy Kim (D-NJ). He also blocked Sen. Marsha Blackburn’s (R-TN) push to pass her NO FAKES Act, arguing the bill wasn’t ready and didn’t address free speech concerns. Meanwhile, the Ratepayer Protection Act failed its first procedural vote. Democrats argued it didn’t go far enough to protect Americans from rising energy prices. Senators promptly left town.

Congress will return from contentious midterm elections to a lame duck session requiring bipartisan agreement on tricky must-pass issues like government funding and the National Defense Authorization Act. In light of these challenges, AI legislation is unlikely to pass this year.

Read more below

Congress

Hearings

Last week

• On September 30, the Senate Homeland Security and Governmental Affairs Disaster Management, District of Columbia, and Census Subcommittee holds a hearing on “Rogue AI: Securing the Homeland Against AI Agent Attacks.”

This week

• Congress returns after the midterm elections.

Legislation

• In a Senate vote of 57-43, the Ratepayer Protection Act failed to reach 60 votes in the Senate to invoke cloture and proceed to consideration of the bill.

• Sens. Mark Warner (D-VA), Brian Schatz (D-HI), and Andy Kim (D-NJ) asked for unanimous consent to pass the Artificial Intelligence Risk Management and Security Act. Sen. Ted Cruz (R-TX) opposed.

• Similarly, Sen. Marsha Blackburn (R-TN) moved to pass her NO FAKES Act, but Cruz also opposed the motion.

• Reps. Mariannette Miller-Meeks (R-IA), Rep. George Whitesides (D-CA), Rep. Mike Kennedy (R-UT), and Rep. Doris Matsui (D-CA) introduced the Protecting Kids from Human-Like Chatbots Act to prohibit chatbots from communicating by default in a human-like way with minors, including pretending to be human, expressing simulated emotions, or using relationship-building language to keep children engaged. (Press release)

• Sens. Josh Hawley (R-MO) and Chris Murphy (D-CT) are expected to introduce the AI Agent Accountability Act to require AI developers and operators face criminal and civil liability if they knowingly operate an AI agent that recklessly causes damage or loss and hold AI companies liable for failing to implement reasonable safeguards. (Press release)

• Sens. John Curtis (R-UT) and Lisa Blunt Rochester (D-DE) introduced the Data Center Community Empowerment Act to give communities access to technical expertise to better understand the potential benefits, costs, and infrastructure impacts of proposed data center development. (Text)

• Curtis and Blunt Rochester also introduced the Data Center Transparency Act to mandate regular federal reporting on the environmental and energy impacts of large data centers that consume at least 50 megawatts of power daily. (Text)

• Sens. Jim Banks (R-IN) and Kirsten Gillibrand (D-NY) introduced a bill to require the Secretary of Defense to establish reporting requirements and voluntary guidance for large artificial intelligence contractors. (Text)

• Sen. Kirsten Gillibrand (D-NY) reintroduced the Data Protection Act to create an independent federal agency to protect Americans’ data, ensure fair data practices, and help the government adapt to rapidly evolving digital technologies. (Text)

• Reps. August Pfluger (R-TX) and Josh Harder (D-CA) introduced the Reliable Artificial Intelligence Research Act (RAIRA) to create federally funded research competitions to strengthen AI defenses and reveal how AI systems make decisions. (Press release)

• Sen. Ruben Gallego (D-AZ) introduced a resolution to establish a Senate Select Committee on Artificial Intelligence. (Text)

• Senate Energy and Natural Resources Committee Chair Mike Lee (R-UT) and Ranking Member Martin Heinrich (D-NM), and Senate Environment and Public Works Committee Chair Shelley Moore Capito (R-WV) and Ranking Member Sheldon Whitehouse (D-RI) introduced the Bipartisan American Affordability and Jobs Act permitting reform bill, which includes a section on mandatory ratepayer protections from data centers. (Text)

• Sens. Bernie Sanders (I-VT) and Jeff Merkley (D-OR) and Rep. Alexandria Ocasio-Cortez (D-NY) introduced the Ban Flock Act to prohibit federal agencies from using automatic license plate readers (ALPRs) and block federal funding from state and local governments that use this technology. (Text)

Correspondence

• Sens. Elissa Slotkin (D-MI), Elizabeth Warren (D-MA), Jeff Merkley (D-OR), Bernie Sanders (I-VT), Richard Blumenthal (D-CT), and Tina Smith (D-MN) sent to the CEOs of Amazon, Meta, Alphabet, and Microsoft requesting transparency on the tax breaks they have received based on their investments in AI and data center spending. (Press release)

• Ranking Member of the Senate Permanent Subcommittee on Investigations Richard Blumenthal (D-CT) and Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs Elizabeth Warren (D-MA) sent a letter to Treasury Secretary Scott Bessent requesting information about the Administration’s voluntary process to test and monitor advanced artificial intelligence models. (Letter)

• Rep. Ro Khanna (D-CA) sent letters to DeepSeek CEO Liang Wenfeng, Alibaba CEO Eddie Wu, and Moonshot AI CEO Yang Zhilin, and Director of National Intelligence Jay Clayton calling for immediate action to address the risks of humans losing control of advanced AI models and urging the development of the safeguards, monitoring capabilities, and verification mechanisms necessary to prevent catastrophic misuse. (Letters)

• Rep. Derrick Van Orden (R-WI) received a cease-and-desist letter from attorneys for his Democratic challenger Rebecca Cooke over his campaign’s use of AI deepfake videos. (Washington Sun)

Publications and Events

• The House Democratic Commission on AI and the Innovation Economy has submitted to Leader Hakeem Jeffries a first draft of legislative recommendations. (Politico)

• Sen. Josh Hawley (R-MO) published an op-ed in the Washington Post entitled “AI Companies Shouldn’t Get a Free Pass to Break Things.” He discusses the dangers AI cyberattacks and holding Big Tech companies accountable. (Press release)

• Rep. Bill Foster (D-IL) and former Rep. John Delaney (D-MD) published on op-ed in the Wall Street Journal entitled “AI Will Be a Boon for Savers,” saying, “AI agents will sweep idle money into top-paying accounts. That will strain banks’ liquidity.” (Op-ed)

• Rep. Pramila Jayapal (D-WA) released the National AI Charter Act framework to require AI companies to hold a federal charter to do business in the U.S. (Framework)

• The Congressional Research Service published a report on “Digital Health Information Interoperability: Background and Selected Policy Considerations.” (Report)

Trump Administration

White House

• President Trump signed a “morally binding” accord with 31 AI companies focused on self-policing, entitled the “White House Accord on Super Intelligence: A Joint Commitment on Frontier SI Responsibilities.” In the accord, companies voluntarily pledge to implement robust safeguards, work with internal and external safety auditors, establish an independent board of directors committee to oversee safety efforts and regularly meet with the other signatories to establish industry standards. Meta CEO Mark Zuckerberg reportedly wrote the accord, with help from Nvidia CEO Jensen Huang. (Accord) (Semafor)

• The Center for AI Standards and Innovation (CAISI) (formerly the AI Safety Institute) has been renamed for the second time, now called the Center for Advancing Innovation and Standards for Super Intelligence (CAISSI) in accordance with President Donald Trump’s executive order to rebrand AI as “super intelligence.” (Politico)

• President Trump named Jay Clayton to lead the newly-created Super Intelligence Force, while also remaining in his current role as Director of National Intelligence. Federal Trade Commission Chair Andrew Ferguson, Undersecretary of Defense for Research and Engineering Emil Michael, and Director of the Office of Personnel Management Scott Kupor will also help lead the Super Intelligence Force. (x.com)

Federal Trade Commission (FTC)

• The FTC has opened an investigation into whether OpenAI, Anthropic and other AI companies have violated federal laws prohibiting companies from unfair and deceptive practices. (New York Times)

Department of Agriculture (USDA)

• On October 6-7, USDA holds a virtual Cybersecurity Expo 2026 with a theme “Cyber Resilience in a Digital World.” (Event)

Department of Health and Human Services (HHS)

• On October 8, HHS holds a virtual meeting of the Health Information Technology Advisory Committee to discuss recommendations to the Assistant Secretary for Technology Policy/National Coordinator on Health Information Technology on interoperability, privacy and security and patient access to information.

National Institute of Standards and Technology (NIST)

• On October 27-28, NIST holds a meeting of the Visiting Committee on Advanced Technology to discuss updates on major programs at NIST, NIST laboratory strategic priorities, cybersecurity programs, and critical and emerging technologies programs.

Noteworthy Quotes

ADMINISTRATION

White House

• On announcing Jay Clayton to lead the new Super Intelligence Force, President Trump posted “‘I am announcing the formation of the Super Intelligence Force (SIF). The Super Intelligence Force is tasked with coordinating the effort of the Federal Government to ensure that America continues to lead the World in Super Intelligence, which many say is bigger than the Industrial Revolution, and the Internet, and will protect the interests, and improve the lives, of all Americans.’ - President DONALD J. TRUMP”

• In announcing the AI accord, Trump told reporters, “We have a very big lead, and we’re going to keep our lead. Our companies are dominating the world. They think that the federal government is doing enough, but they’re dominating China. They’re dominating everything. We want to keep it that way.” (Washington Sun)

• Trump also said, “The biggest people in the world signed that and I signed it as president. And it really is a form of protection.” He added, “I’m seeing tremendous self-policing, and they understand that they have to self-police.” (Politico)(Politico)

• Trump also said, “I will never stifle the growth of technology that will be bigger than the industrial revolution.” (Punchbowl)

• At the accord signing, Director of National Intelligence Jay Clayton said, “Being a leader in America in AI is the most important thing for national security.” (Punchbowl)

• When asked by reporters if Clayton would be named AI Czar, Trump said, “That’s a good idea.” (Punchbowl)

• At a fireside chat between HHS Secretary Robert F. Kennedy and Vice President JD Vance, Kennedy said regarding “super intelligence,” “One of the things that’s going to change is that we’re never, ever again going to be able to be dominated by public officials who tell us ‘trust the experts.’” (Politico)

• Vance said, “I do think that we have been so dominated by the doomers and the cynics, and that it’s going to be Terminator 2, and the robots are going to come and kill all of us.” (Politico)

Federal Reserve

• Fed Governor Lisa Cook delivered remarks on “An Update on AI and the Economy,” analyzing AI’s impact on inflation, the labor market, and diffusion across firms. She says, “As a policymaker, I consider the promise and challenge of AI over several time horizons. In the short term, AI appears to be adding inflationary pressures to the economy, postponing inflation’s return to our 2 percent target. In the medium term, while I expect that productivity growth may modestly ease those inflationary pressures, the labor market will be at risk of entering a painful transition. In the long term, I am optimistic that AI-fueled productivity growth can raise living standards for all Americans. With appropriate vigilance and thoughtful navigation of these opportunities and challenges, the Federal Open Market Committee (FOMC) will be able to achieve its dual mandate of maximum employment and stable prices.” (Remarks)

CONGRESS

White House AI Accord

• In a statement to press after the White House signing, House Speaker Mike Johnson (R-LA) said, “Safety and innovation are not mutually exclusive pursuits. Everyone around the table nodded in agreement and said it in their own words in their own way, but we can do both of these things. In fact, it was noted that when innovation continues, safety innovation continues as well. That’s a big part of this. The super intelligence providers are committed to building trust as they help us build the future, and they can and will do that. And they’re ready to put their names on the line to agree to that very commitment… The White House and Congress will continue to guide the industry’s development in a safe manner because we owe that to the American people and we will do it. Congress is going to keep steady hands at the wheel on this and will continue to assess and further deliberate in the days ahead. This technology is advancing quickly and that is an exciting thing. We talked about advancements in medical technology and in every facet of our work and our culture and society in very positive ways.” (Press release)

• Johnson also said, “I think a little oversight, a little transparency, a little external auditing of what’s going on would calm the nerves of a lot of people. We got to figure out what that exact balance is.” (Punchbowl)

• Reps. Lori Trahan (D-MA) and Jay Obernolte (R-CA) issued a statement on the White House Accord signed by leading AI companies, saying, “This week, America’s leading AI companies signed the White House Accord, an important step toward ensuring that the most advanced AI systems are developed responsibly. The Accord embraces several principles at the heart of our bipartisan FRONTIER Act: robust internal risk management, strong corporate governance, and independent third-party evaluation. It shows that the industry’s leaders see real value in these safeguards, and we look forward to each company expeditiously following through. The FRONTIER Act would build on this foundation and make it durable. It sets clear, risk-based national standards for the largest developers and most advanced models. It gives independent verifiers a common standard to assess against, with federal oversight to back it up. It establishes uniform transparency and incident reporting, and emergency authority to stop a catastrophe before it happens. Importantly, the FRONTIER Act does this while keeping America at the forefront of AI innovation. We look forward to working with the President, our colleagues in both chambers, and American innovators to advance this bipartisan framework.” (Press release)

• Sen. Bernie Moreno (R-OH) said, “I hope that the companies commit to self-policing guidelines ASAP, not waiting for Congress. Because as you know, this place isn’t exactly the fastest-moving organism on Earth.” (Politico)

• Sen. Todd Young (R-IN) said, “Maybe nothing comes out of it, but I think it’s good that he’s visiting with these tech bros.” (Politico)

• Regarding Congressional action to regulate AI, Sen. Ashley Moody (R-FL) said Congress can’t rely on AI companies to “just do the jobs for us.” (Politico)

• Rep. Sara Jacobs (D-CA) posted “We can’t ‘win’ the AI race if no one trusts these AI systems enough to adopt them or if they hurt people who use them. We need enforceable rules that make AI systems transparent and safe – and hold these companies accountable. ‘Self-policing’ won’t get us there.”

• Sen. Michael Bennet (D-CO) posted “AI is too powerful to regulate through a handshake agreement. We need an independent federal agency with the authority to set real safeguards, enforce them, and protect the American people.”

• Rep. Emanuel Cleaver (D-MO) posted “The president continues to make clear that Republicans will do nothing to regulate AI, hold Silicon Valley billionaires accountable, or put our communities before Big Tech corporate profits.”

• Rep. Raja Krishnamoorthi (D-IL) posted “Trump says the AI industry can “self-police.” For technology this powerful, an honor system is not a safety policy. We need real oversight and enforceable safeguards”

• Sen. Ben Ray Luján (D-NM) posted “The Trump White House couldn’t even spell the ‘UNITED STATES’ correctly in its new AI agreement. How can we trust this administration to get the safeguards right to protect Americans? This is why I’m calling for a bipartisan Select Committee on AI.”

• Sen. John Curtis (R-UT) said, “We need to codify it in law.” (Punchbowl)

• On the best place for AI safety standards, Sen. Mike Rounds (R-SD) said, “I’d like to see them, as I call it, nesting it in NIST.” (Punchbowl)

• Sen. Brian Schatz (D-HI) said, “Morally binding is funny. We should do legally binding.” (Punchbowl)

Senate Homeland Security Subcommittee on Disaster Management, District of Columbia, and Census hearing on “Rogue AI: Securing the Homeland Against AI Agent Attacks”

• In his opening statement, Sen. Josh Hawley (R-MO) said, “Every day you turn on the television, it seems like AI is doing something else bad: setting up surveillance camera networks nationwide, data centers in all of our states, and hacking, hacking, hacking. The reports of cyber attacks just continue to metastasize … We’ve got the cyber attacks now on the United States government, on the Commerce Department, the Education Department, the Securities and Exchange Commission. We’ve got the cyber attacks on the Australian government, on their public health apparatus. We have numerous reports of private companies being hacked by AI agents. Of course, the Hugging Face incident and attack, which we’re going to discuss today in some detail. I think it’s time to have a conversation about who bears responsibility … If it’s not trying to say to these AI companies who are creating these frontier models, however fancy and complicated they are, at the end of the day, they’re a product, and if you make that product in a reckless kind of way, and that product causes these AI agents cause significant harm and damage … then it’s the people who made it who should be responsible. I think it’s time to talk about that, and it’s time to talk about what we’re going to do to hold the companies, the product makers, accountable. I hope that what will come from this is a rational conversation about what we need to do together now, as Americans, to make sure that we protect our rights, that we protect our economy, that we protect our health care, that we protect our critical infrastructure, but most of all, we protect the values that we hold dearest together as Americans.” (Press release)

• In his opening statement, Sen. Andy Kim (D-NJ) said, “We know that AI is moving incredibly fast. All of us in the Senate want to see us driving the innovation of the future. All of us want to see American businesses being able to be in the lead and pushing that forward. But the idea and the value of innovation and American technology pushing that frontier is not mutually exclusive with ensuring safety and security for the American people. Our job here is to make sure that we can have both happen.” (Press release)

• Kim also said, “We must maintain control to avoid chaos. To do that, we need broad, bipartisan conversations like this hearing to craft informed and implementable guardrails.” (Punchbowl)

• During the hearing, Sen. Ruben Gallego (D-AZ) said, “The reason I bring this whole China hypothesis—a country that has severely restricted the internet, social media—is all of a sudden going to allow AI rogue agents to go crazy in their very controlled economic environment, social environment, and we have to therefore allow ours to go as crazy as them? It just doesn’t make sense. The Chinese Communist Party has been consistently controlling technology to try to shape their society. They’re never going to allow this to go crazy. Once these agents start speaking their language, they will not be detectable in China or America. Is there a sandbox that says, ‘Please attack the United States, but do not attack any Chinese interests’? […] Is there a sandbox that can hold? No. That should scare the shit out of people.” (Press release)

Data Centers and the Ratepayer Protection Act

• After Democrats blocked consideration of the Ratepayer Protection Act, Senate Majority Leader John Thune (R-SD) said, “It is difficult to conclude that Democrats blocked this bill for any reason other than the desire to deny Republicans another win in an election year — which is a pretty poor reason for opposing a measure to protect Americans from higher energy costs.” (Politico)

• Sen. Mike Crapo (R-ID) released a statement on the Ratepayer Protection Act, saying, “The U.S. must remain globally competitive in the advancement of artificial intelligence, which requires supporting the infrastructure and energy resources necessary for this growing technology. However, those costs should not be borne by Idaho ratepayers and communities. Large-load customers, such as data centers, should be responsible for the infrastructure and resources needed to power and maintain their facilities.” (Press release)

• Sen. Gary Peters (D-Mich.) said, “I think we set it up very plainly: the Republicans put forward a sham bill. When Democrats take the majority, you will actually get real legislation necessary to put in proper safeguards and guardrails with data centers as well as AI.” (Politico)

• Sen. Maggie Hassan (D-NH) said, “I do not think that the bill as presented to us right now is strong enough. But I thought we should have the debate and see if we would strengthen it and get something done.” (Politico)

• Sen. Raphael Warnock (D-GA) said, “I don’t think that this bill does enough. But if Republicans are finally ready to join the conversation about the tremendous pressure that consumers are under, then I welcome them finally to the table.” (Politico)

• On bipartisan passage of the bill in the House, Sen. John Hickenlooper (D-CO) said, “People go along with these symbolic things there that have no teeth. But the Senate doesn’t work that way.” (Politico)

• Rep. Gabe Evans (R-CO) said, “My legislation earned 417 votes in the House, because we understand protecting hardworking families from costs they didn’t create shouldn’t be controversial. The House proved that this wasn’t a partisan issue. Senate Democrats decided to make it one.” (Politico)

• On the bipartisan permitting reform deal, said Sen. Tim Kaine (D-VA) said, “It’s not a theoretical something. We’re being told that there is a deal, and we will take it up as soon as we get back, and it has mandatory provisions, not voluntary provisions.” (Politico)

• Sen. Roger Wicker (R-MS) posted “The United States must win the AI race. This will take close coordination with industry, neighborhoods, and local leaders. Mississippi families and taxpayers should not be left funding data center construction. Today, I voted to advance the Ratepayer Protection Act. The bill would set standards that states can consider to make data center owners responsible for any extra energy costs. The bill passed the House of Representatives 417 to 3, but nearly every Senate Democrat voted no. They blocked a widely supported solution, opting to put partisan politics over Americans’ pocketbooks.”

• Sen. Mike Rounds (R-SD) posted “Today I voted in favor of the Ratepayer Protection Act to protect families and small businesses from paying higher electric bills due to data center construction in their communities. The key to this bill is preserving state local control. Data centers should only be built if their companies pay their own way and provide the power they consume. Very pleased that South Dakota is leading the way with similar legislation already in place at the state level.”

• Sen. Mike Crapo (R-ID) posted “America must lead the world in artificial intelligence, but everyday families should not have to pay for the massive power grids and infrastructure required by big tech data centers. I voted to advance the Ratepayer Protection Act to ensure large-load customers pay their fair share for energy upgrades, keeping electricity bills affordable for Idaho families and local businesses. We can power American innovation while still protecting working families from bearing the cost. It’s unfortunate Senate Democrats failed to join us in advancing this important bill the House had already passed 417-3.”

• Rep. Summer Lee (D-PA) posted “Today I joined organizers, researchers, workers, and community leaders at the Community-Centered AI Infrastructure Summit Carnegie Mellon to talk about what AI innovations should look like in Pennsylvania. Leading on AI doesn’t mean more data centers at any cost or an arms race to superintelligence. It means making sure that AI actually improves life for all of us, not just CEOs and oligarchs. We have a collective responsibility to ensure that. We need strong regulations to protect our civil rights, workplace, democracy, environment, and our health.”

• Rep. Jim McGovern (D-MA) posted “So he doesn’t want a data center next to his house, but he’s fine dropping one in your backyard and jacking up your utility bills. Typical.”

• Rep. Rich McCormick (R-GA) posted “America’s AI boom means American JOBS. Nearly 2,800 data centers announced or under construction, 4.7 MILLION projected construction job-years. Nearly 700,000 projected permanent jobs, Electricians earning $59.50/hour and up. This isn’t just about Silicon Valley. It’s about American paychecks. Hardworking Americans built this country. They should build what comes next.”

• McCormick also posted “AI data centers are headed to space. American companies are already testing the technology that could make space-based AI computing a reality. The AI race is moving fast. America needs to move faster, stay ahead of China, and keep leading in both AI and space.”

• Rep. Joe Courtney (D-CT) posted “With the harm of data center overdevelopment clear, the government should not be giving big tech companies tax breaks to build them.”

• House Energy and Commerce Committee posted “’An absolute game changer.’ That’s how local leaders in Frankfort, Indiana describe a proposed $7.5 billion data center: good-paying jobs, millions for city services, and new energy infrastructure at no cost to ratepayers. AI infrastructure is creating opportunities for towns across America”

• Sen. Dave McCormick (R-PA) posted “We can’t let fear dictate America’s future while China moves forward on AI, especially when Beijing is fueling opposition here at home. Local communities must decide if data centers are right for them. Any deal must protect ratepayers and deliver real local benefits.”

AI Legislative Action

• In blocking AI bills from consideration on the Senate floor, Sen. Ted Cruz (R-TX) said, “Congress must not legislate on the issue of artificial intelligence hastily or in a closed manner.” (Politico)

• On passing AI legislation this Congress, Sen. Cynthia Lummis (R-WY) said, “We don’t have the expertise to do it in a more comprehensive manner.” (Punchbowl)

• On passage of AI bills next year, Senate Minority Leader Chuck Schumer (D-NY) said, “[We have] many, many good ideas from many different people … several are coming out each week, and we’re going to try to work in a bipartisan way, a unified way, to keep the transformational ability of AI. But we need strong guardrails.” (Politico)

• Senate Majority Leader John Thune (R-SD) said, “As you know, I’ve been working up here for some time on a legislative framework, and we continue down that path too.” (Politico)

• In floor remarks, Sen. Mark Warner (D-VA) said, “The whole world has recognized that we’ve got to do something. When AI companies come out one after another say we’ve got to elevate safety. We should not miss the moment to put a safety protocol in place now. If we leave and we have an incident, AI is already suspect by most Americans, we could actually see the stop of innovation if an AI tool took over a hospital, or a water system.” (Press release)

• Sen. Amy Klobuchar (D-MN) said, “We’re seeing the alarm bells go off about the real risks that AI poses to our country and our national security. It’s unfortunate that the President’s opposition to commonsense, bipartisan guardrails has complicated the negotiations. Over the last weeks we were obviously aware this would most likely not pass until after the election since the House went home. That being said, we are continuing to negotiate and we must pass strong safeguards to address these risks by the end of the year.” (Politico)

• Sen. Andy Kim (D-NJ) said, “The American people are demanding answers. We can’t wait any longer before we really push deeper into this conversation here in the Capitol.” (Politico)

• Rep. Glenn Ivey (D-MD) posted “AI isn’t taking a 7 week recess. Congress shouldn’t either. We have bipartisan legislation on the table in the House to address the risks of AI. But we can’t debate it, improve it or pass it when Speaker Johnson sends the House home. We should be in Washington doing our jobs. Republicans are running from it.”

• Rep. Doris Matsui (D-CA) posted “Congress must act on regulating AI — now. That’s why I’ve been working with my colleagues to introduce legislation that protects our national security, our jobs, and our children. We can lead on AI innovation while putting the safeguards in place to keep Americans safe.”

• Sen. Lisa Blunt Rochester (D-DE) posted “There’s still much more to do. It’s time for leading AI companies to come before Congress and explain to the American people what’s happening and how they’ll keep us safe as this technology evolves.”

• Sen. Mark Warner (D-VA) posted “Yikes – we just got a dismal jobs report from Trump’s sagging economy. Let’s end this war and get job-protecting AI legislation in place. We can and must turn this around.”

• Sen. Elizabeth Warren (D-MA) posted “Republicans sent the Senate home this week without taking ANY real action to: End Donald Trump’s Iran war, Lower costs for American families, Regulate AI”

• Sen. Andy Kim (D-NJ) posted “Do we have the political will to reassert control over AI? The time is now.”

AI Safety

• Senate Select Committee on Intelligence Vice Chair Mark Warner (D-VA) said, “You’ve got to have national security [agencies] at the table… [AI is] “a national security risk as well as a huge safety risk.” (Punchbowl)

• Sen. Mike Rounds (R-SD) said the AI industry could “determine how you test the new models, what a sandbox actually looks like, how to continue to improve the sandboxes as these models get to be more complicated.” (Punchbowl)

• Rep. Josh Gottheimer (D-NJ) said, “Before you put out a model, they should have to go for a timely review. The intelligence community should handle it.” (Punchbowl)

• Rep. Josh Gottheimer (D-NJ) posted “AI systems are growing more capable by the day, and the next containment failure could be far more serious. RepTedLieu, ValerieFoushee, and I are demanding answers from leading AI companies about incidents where their AI agents have gone rogue. We need full transparency and real safeguards now.”

• Sen. John Curtis (R-UT) posted “The people working directly with AI systems are often the first to recognize when something has gone wrong. Our bill ensures AI whistleblowers are able to report serious legal, security, or public safety concerns without risking their careers.”

• Rep. Ro Khanna (D-CA) posted “ChatGPT literally helped plan a mass shooting. Eight people were killed. We need to hold the executives of these AI companies civilly and criminally liable when their models cause this kind of catastrophic harm.”

• Sen. Ruben Gallego (D-AZ) posted “Once rogue AI agents start speaking in their own language, they won’t care whether you’re America or China. We’re all at risk. Congress needs to take that threat seriously.”

• Rep. Rich McCormick (R-GA) posted “Safety matters. So does WINNING. nvidia’s OpenShell is tackling AI safety the way America does best: by engineering solutions, not slowing innovation with more mandates from Washington. Let our innovators innovate. Let our companies compete. And let’s stay ahead of China.”

• Sen. Bernie Sanders (I-VT) posted “In a new experiment, nearly half the people on a video call thought they were speaking to a human. They weren’t. It was a new AI model. That is INSANE. Does anyone in America think it is a good idea to race forward to build machines that replace us? PAUSE AI NOW.”

Surveillance and Data Privacy

• Sen. Jacky Rosen (D-NV) posted “Imagine this: you’re shopping for the same items as the person next to you, but you’re paying more. It’s called surveillance pricing – where big corporations charge all of us different prices for the same shopping cart based on a profile they create of you using AI. This is just one way AI is changing our world, which is why I’m calling on the Senate Commerce Committee to hold a hearing on AI and pass responsible guardrails to crack down on abusive practices like this one.”

• Sen. Jeff Merkley (D-OR) posted “We need to hit the brakes on billionaire corporations spying on you every time you start your car. I introduced the Car Privacy Rights Act to protect consumers from the automakers collecting and selling your private data!”

• Sen. Bernie Sanders (I-VT) posted “Going to the doctor? Flock knows. Dropping your kid off at school? Flock is tracking you. Big Tech oligarchs are funding over 100,000 AI–powered Flock surveillance cameras to track Americans’ every move. Ban Flock NOW.”

• Rep. Alexandria Ocasio-Cortez (D-NY) posted “Big Tech companies like Flock Safety have built a mass surveillance system to harvest Americans’ private and personal data without their consent. I’m proud to introduce the Ban Flock Act with SenSanders to enforce our constitutional right to privacy.”

• Sen. Mark Kelly (D-AZ) posted “Great explanation here. Americans are struggling to afford groceries, and the last thing we need is stores using surveillance pricing to make you pay more. I have legislation to crack down on it.”

China

• Senate Republicans posted “Giving Communist China controlled American AI hardware is illegal. The Chinese Communist Party understands the stakes of the AI race and will go to great lengths to steal American technology. Anyone who helps the CCP win the AI race harms America and must face the consequences.”

• Rep. Raja Krishnamoorthi (D-IL) posted “If we want America to lead on AI, we cannot hand China our most advanced chips or let Chinese companies evade export controls through overseas data centers. We should be tightening these safeguards now.”

• House Foreign Affairs Committee Majority posted “Chinese military companies shouldn’t be able to rent access to America’s best chips to train world-leading AI models. That’s why the House passed the Remote Access Security Act.”

Miscellaneous

• Senate Select Committee on Intelligence Vice Chair Mark Warner (D-VA) issued a statement saying, “The companies building the most powerful AI systems are warning us that the technology is advancing faster than our safeguards. The president’s response? To rename it and tell the companies developing it to regulate themselves. But changing what we call artificial intelligence does nothing to address the very real risks that come with increasingly powerful AI systems. I believe deeply in the promise of AI and in America’s ability to lead the world in this technology. But leadership also means making sure these systems are safe, secure, and remain under human control. That is why I’ve introduced legislation to require rigorous testing and evaluation of the most advanced AI systems, strengthen cybersecurity and incident reporting, and establish clear rules of the road before the most powerful models are deployed. There is bipartisan interest in Congress in getting this right. The technology is moving incredibly fast, and the risks are no longer theoretical. The question is whether Washington is going to act before something goes seriously wrong — or wait until afterward to ask why we didn’t.” (Press release)

• Warner posted “AI is already at a point where it could make serious attacks on our hospitals, banks, and water systems. Trump’s solution? Renaming it ‘SI.’”

• About AI, Rep. Valerie Foushee (D-NC) said, “We have seen evidence of how technology can be used for discrimination. We’ve seen how some groups have been excluded. My focus is to make sure that we’re not leaving anybody behind.” (Politico)

• On her role on a co-chair of the House Democrats’ House Democratic Commission on AI and the Innovation Economy, Foushee said, “I was glad to be one of those that the leader thought might be helpful in leading us into the future. So I don’t know if I would say that I was, you know, moved to do it, but certainly happy to do my part… Let me just say to you that no one should be worried or concerned. My work on AI has always been focused on establishing guardrails and holding corporations accountable. There is nothing that you will see in any legislation that I have introduced, led, co-led, or co-sponsored that has not been towards holding corporations accountable and protecting the American public.” (Politico)

• On AI industry conversations about safety, Foushee said, “When … you’re not allowing for the engagement of members of Congress, and not even an opportunity to provide input or to be engaged in the conversation, it makes me wonder what those efforts are about.” (Politico)

• Sen. Joni Ernst (R-IA) said, “AI has been so helpful in medical research and protecting our troops from drone swarms or missile attacks… so we need to keep moving forward. If we pause, we’re not going to see China pause.” (Press release)

• On his resolution, Sen. Ruben Gallego (D-AZ) said, “The rapid development and deployment of Artificial Intelligence is akin to Dr. Frankenstein saying, ‘the monster is loose. Help me stop the monster.’ Congress must keep up and act. A bipartisan select committee would provide the vehicle for a focused, informed approach to governing AI that protects America’s national security interests while maintaining a competitive edge in the AI race.” (Press release)

• On the decision by OpenAI to delay the release of GPT-6 Astra, Sen. Chris Van Hollen (D-MD) released a statement saying, “While I’m glad to see OpenAI hold the release of its latest model, GPT-6.1 Astra, this decision should come as yet another warning sign to those who want to proceed recklessly with the continued development of frontier artificial intelligence. That’s why I called on OpenAI to reconsider its release of GPT-6 Astra, and why I’m pressing for answers on a number of questions that remain around these models – namely their safety. OpenAI has yet to provide answers to those questions, but I have made clear that I expect to receive them in the coming days. As OpenAI and others review thousands of security incidents, we must urgently address the safety of these platforms. I will keep pressing for critical guardrails to protect humanity from the threat of unregulated AI development.” (Press release)

• Rep. Suzan DelBene (D-WA) posted “We asked the Trump administration’s new AI chatbot some important questions. It was surprisingly honest.”

• Sen. Ed Markey (D-MA) posted “Elon Musk advising Trump on warfare is just handing over your taxpayer money to a trillionaire. Musk will push his AI and space technologies, make money from defense contracts, then pour that money into MAGA campaigns. Corruption in plain sight.”

• Rep. Salud Carbajal (D-CA) posted “Even Trump’s AI chatbot knows the truth about his disastrous One Big Ugly Bill. Thanks, America.gov”

• Rep. Bill Foster (D-IL) posted “AI is giving Americans new options to manage their money. AI tools that chase higher interest rates may benefit savers—and this will have sweeping implications for our financial system. Read my WSJ op-ed with former Congressman JohnDelaney on how AI could affect your bank or credit union”

• Rep. Hillary Scholten (D-MI) posted “Join me for the third installment of my Congressional Dialogue Series on the Responsible Development of Artificial Intelligence. October 5th, 2026”

• Rep. Becca Balint (D-VT) posted “Yes! There’s something special about the human experience of creating new art – and about consuming art made by fellow humans. This is why my colleagues and I introduced the NO FAKES Act. Artists need protections against unauthorized AI replicas of their voice and likeness.”

• Rep. Mike Kennedy (R-UT) posted “As Utah leads the way in protecting our children from the harms of social media and AI, I am working to ensure the federal government is an active partner in those efforts. That is why I am co-leading the Protecting Kids from Human-Like Chatbots Act. Human-like AI chatbots pose significant emotional, psychological and safety risks by mimicking real human relationships. AI needs to be a tool, not a friend. This bill sets clear boundaries for how chatbots interact with our children and puts parents fully in charge of these features.”

• Rep. Doris Matsui (D-CA) posted “AI is changing quickly, and our responsibility to protect kids must keep up. I introduced the bipartisan Protecting Kids from Human-Like Chatbots Act with Rep_Whitesides to establish safeguards for children interacting with AI designed to act and speak like real people. When kids can’t tell where technology ends and a real relationship begins, the stakes are too high to wait. Congress must act now to keep them safe.”

• Rep. Chuck Fleischmann (R-TN) posted “America must and will win in quantum. Thank you to EPB_Chattanooga for hosting and inviting me to speak at tonight’s event connecting stakeholders from across the nation to spotlight our city’s commitment in this space and their foresight in building the nation’s first commercial quantum network. Quantum is on in Chattanooga!”

• Fleischmann also posted “I was honored to be featured at EPB’s roundtable highlighting Chattanooga’s groundbreaking quantum infrastructure, the nation’s first commercial quantum network, and the community and business leaders who make it possible. Through years of community project funding and building local relationships with ORNL and federal agencies, I have had the privilege of bringing these partnerships just as EPB_Chattanooga has built this world-leading quantum ecosystem. I’m proud to work closely with the state, local, and academic leaders shaping our tech-forward future and growing the workforce that is making Chattanooga a hub for innovation. Working together, we’re expanding opportunities for everyone as we make quantum a reality.”

• Rep. Greg Landsman (D-OH) posted “Using artificial intelligence to deny Medicare coverage is cruel and wrong. The WISeR model must be stopped.”

• Rep. Greg Casar (D-TX) posted “OpenAI’s president admits his AI super PAC has become a liability. The pressure is working. Progressives have worked hard to make LTF as toxic as AIPAC. Now one of its biggest donors is backing out. Democrats need to stand with the people and reject AI billionaires’ money.”

National AI Charter

• Rep. Pramila Jayapal (D-WA) posted “At its core, the AI Charter is about putting the public, not billionaires or monopolies, in control of AI’s future. Learn more about the National AI Charter framework.

• Jayapal also posted “As long as the damage costs less than the profits, AI companies will keep taking reckless risks. The AI Charter would flip those incentives, holding companies and executives strictly liable for lawbreaking, with loss of charter and criminal penalties for repeat offenders.”

• Jayapal also posted “AI executives insist companies can oversee their own safety while admitting to frequent breaches. The AI Charter replaces failed self-regulation with round-the-clock federal oversight, testing, and pre-approval, surprise stress tests, and a government-controlled kill switch.”

• Jayapal also posted “AI harm can spread too fast for after-the-fact enforcement to stop it, and fines don’t undo the damage or prevent the next time. Compliance with the charter’s bans and other terms would be the price of entry into the AI industry and the condition for continuing to operate.”

• Jayapal also posted “Instead of trying to manage AI’s dangers with technical rules that are obsolete before the ink dries, the AI Charter imposes bright line bans on risky systems. AI models that can go rogue, create catastrophic risks, replace skilled work, or exploit children would be illegal.”

• Rep. Pramila Jayapal (D-WA) posted “Under the AI Charter, predatory commercial surveillance is banned along with all the ways AI can exploit, manipulate, and gouge people by tracking their every move. The charter also claws back ill gotten gains from past surveillance to fund direct payouts to all Americans.”

• Jayapal also posted “To qualify for an AI Charter, AI companies would have to split from Big Tech so that AI isn’t baked into the underlying internet infrastructure people can’t avoid and the platforms everyone uses.”

• Jayapal also posted “Workers, parents, creators, small businesses: Big Tech has kept its opposition divided by narrowing every fight to a single issue. The charter framework takes on monopoly power, surveillance, worker exploitation, and dangerous AI together, because they share the same root.”

• Jayapal also posted “Big Tech is building AI empires with Americans’ data, content, and work, while answering to no one. My National AI Charter framework changes that: AI companies either agree to the public’s terms or get shut down.”

• Jayapal also posted “I just released my framework for a new comprehensive way we can regulate AI and rein in Big Tech. Here’s how it would work.”

• Jayapal also posted “With a National AI Charter, AI companies are required to comply with federal standards that prevent the release of risky models, stealing data through surveillance, exploiting workers, and causing serious harm. If they don’t agree or comply, they get shut down.”

• Jayapal also posted “Too many proposals to regulate AI treat data privacy, children’s safety, worker rights, and market concentration as separate issues. My National AI Charter policy changes the entire market structure, forcing AI companies to shut down their dangerous models BEFORE harm occurs.”

What I’m Reading This Week

• OpenAI Ignored Employees Who Warned It Wasn’t Doing Enough About Security, Sheera Frenkel, Dustin Volz, and Dylan Freedman, The New York Times.

• Will A.I. Kill Us? Can It Hack My Bank Account? Your A.I. Questions Answered, Cade Metz, Dylan Freedman, and K. R. Callaway, The New York Times.

• AI’s Ticking Timebomb, Mike Allen, Axios.

• How Meta Uses A.I. Data Centers to Avoid Billions in Federal Taxes, Kashmir Hill, Jesse Drucker, Eli Tan, and Mike Isaac, The New York Times.

• Hallucinating Credibility: China-Aligned TA419 Impersonates its Way into US AI Policy Circles, ProofPoint.

• Vulnerability Discovery and Exploitation Trends in the AI Era, Google Threat Intelligence.

• AI Operational Guidelines for National Security: A Proposed Field Guide for Capability-Specific Governance, Vanderbilt University Institute of National Security’s Wicked Problems Lab.

• GLM-5.3 and the Spread of Advanced Cyber Capabilities, Andrew Fasano, Marius Fleischer, Cole McFaul, Robert Xiao, and Tripp Gallagher, Anthropic.

• Taxing the Model Owners: A Flag State Regime for Artificial Intelligence, Reuven S. Avi-Yonah and Lucas Gribinski, Tax Notes.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

Check out our other newsletter, DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy

Driving the week in AI federal policy, Congress turns its focus on national security, cybersecurity, safety, and agentic AI. Calls continue for an independent global authority on AI and for congressional committees dedicated to artificial intelligence. U.S.-China talks drew plenty of reaction on the Hill.

After President Trump met with Chinese President Xi Jinping, the White House pointed to several agreements reached during talks, including replacing the term “artificial intelligence” with “super intelligence” and launching a Super Intelligence Dialogue for the two countries to exchange views.

The CDC issued a request for information on how data intermediaries could support public health data exchange.

Read more below

Congress

Hearings

Last week

• On September 23, the Senate Judiciary Subcommittee on Crime and Counterterrorism held a hearing on “Always Watching: Flock’s Nationwide AI Surveillance Network.”

This week

• On September 30, the Senate Homeland Security and Governmental Affairs Subcommittee on Disaster Management, District of Columbia, and Census holds a hearing on “Rogue AI: Securing the Homeland Against AI Agent Attacks.”

Legislation

• The House Energy and Commerce Committee approved a series of bills, including the AI For Secure Networks Act.

• Sens. Mark Warner (D-VA), Brian Schatz (D-HI), and Andy Kim (D-NJ) introduced the Artificial Intelligence Risk Management and Security Act to establish enforceable safety and security standards for the most advanced artificial intelligence systems. (Text)

• Sens. Dave McCormick (R-PA), Ruben Gallego (D-AZ), John Cornyn (R-TX), and John Fetterman (D-PA) introduced the Securing National Security Systems from Chinese Optical Transceivers Act to prevent Chinese-made optical transceivers from being used in the federal government’s most sensitive national security systems. (Press release)

• Sens. James Lankford (R-OK), Chris Coons (D-DE), Katie Britt (R-AL), and Brian Schatz (D-HI) introduced the AI Systems Transparency Act (ASTA) to require AI companies to disclose to the public what data their models are collecting from users, the safeguards and guardrails they’ve implemented. (Text)

• Sen. Ed Markey (D-MA) introduced the Cybersecurity and AI Board of Investigations Act to establish an independent board to investigate major cybersecurity incidents impacting critical infrastructure, including those enabled by AI. (Text)

• Sen. Mark Kelly (D-AZ) introduced the Make AI Work for Americans Act to establishes an AI Horizon Fund as a dedicated federal trust fund to support American workers, funded by leading tech companies through taxes on excess profits, digital ad services, and AI usage. The Fund would be overseen by a 15-member Artificial Intelligence Advisory Council AI experts and representatives from labor, higher education, and workforce development. (Text)

• Rep. Greg Casar (D-TX) and Sen. Bernie Sanders (I-VT) introduced the Ban Artificial Superintelligence Act to stop AI oligarchs from building machines humans cannot control and to pause advanced AI development until the U.S. can put in place rigorous federal testing and oversight. (Text)

• Sens. Peter Welch (D-VT) and Michael Bennet (D-CO) introduced the AI Regulator Act to require pre-certification for frontier AI models, delay the public release of any AI model that could pose catastrophic risks without necessary safeguards, issue formal rulemakings to set guardrails that keep pace with the speed of innovation, conduct investigations, engage in research, and impose penalties. (Press release)

• Reps. Tom Barrett (R-MI), Greg Landsman (D-OH), and Jamie Raskin (MD-08) introduced the No Secrets for Data Centers Act to prohibit non-disclosure agreements by government officials to conceal details of data center projects from the public. (Text)

• Rep. Greg Steube (R-FL) introduced the Facilitating Liberty and Accountability for Flock Observations (FLAFO) Act to prohibit federal agencies from purchasing, leasing, operating, accessing, or sharing data with networked Automated License Plate Reader surveillance systems without a judicial warrant. (Text)

• Rep. Tom Kean (D-NJ) introduced the AI Emergency Button Act to require artificial intelligence developers to install an emergency kill switch. (Press release)

• Rep. Darrell Issa (R-CA) introduced the American Copyright Protection Act to allow copyright owners to seek a federal court determination that a foreign website is engaged in copyright piracy and petition the court to require internet service providers to take commercially reasonable steps to prevent access to the site in the United States. (Text)

• Rep. Suzanne Bonamici (D-OR) introduced the Artificial Intelligence Education and Workforce Readiness Act to require AI risk assessment standards for classroom technology, safeguards against harmful content, parental notice and opt-out rights, human review of automated decisions in federally funded workforce programs, and a secure student data breach reporting portal; create strict safety compliance requirements, prohibit model developers from directing school instructional content or requiring exclusive use of their AI product; and require data center operators to disclose pre-construction energy and water consumption projections and actual operational consumption. (Text)

• Sens. Edward Markey (D-MA), Jeff Merkley (D-OR) and Reps. Pramila Jayapal (D-WA), Rashida Tlaib (D-MI), and Ayanna Pressley (D-MA) reintroduced the Facial Recognition and Biometric Technology Moratorium Act to prohibit the government from using facial recognition and other biometric technologies. (Text)

Correspondence

• Sens. Mark Warner (D-VA), Jack Reed (D-RI), and Chris Coons (D-DE), sent a letter to Secretary of Defense Pete Hegseth and Director of National Intelligence Jay Clayton urging an investigation into reported failures involving the use of artificial intelligence in U.S. military and intelligence operations and provide relevant Inspectors General with unrestricted access to examine the incidents. (Letter)

• Sen. Todd Young (R-IN) sent a letter to National Security Advisor Marco Rubio calling on the National Security Council to convene recurring discussions between federal officials, leading artificial intelligence developers, cybersecurity experts, researchers, and critical infrastructure representatives to identify and address emerging national security threats posed by advanced AI systems. (Letter)

• Sen. Chris Van Hollen (D-MD) led 16 Senate Democrats in a letter to President Trump urging the President to negotiate a formal agreement between the U.S. and China on guardrails and global standards for the development, testing, and use of frontier Artificial Intelligence models with Chinese President Xi Jinping. The letter also urges Trump to consider enacting a mutual pause in frontier AI development. (Letter)

• Members of the bipartisan Congressional Working Group on Artificial Intelligence and Evolving Technologies sent a letter to President Donald Trump urging the Administration to lead international efforts to establish clear standards for the safe and secure development of advanced artificial intelligence. (Letter)

• Sen. Ben Ray Luján (D-NM) sent a letter to Senate Majority Leader John Thune (R-SD) and Democratic Leader Chuck Schumer (D-NY) urging they establish a bipartisan Senate Select Committee on Artificial Intelligence. (Letter)

• Natural Resources Committee Ranking Member Jared Huffman (D-CA) and Rep. Dina Titus (D-NV) led 14 House Democrats in sending a letter to Interior Secretary Doug Burgum requesting information on the Department’s reported plans to allow construction of data center projects on federal public lands. (Letter)

• Rep. Ro Khanna (D-CA) sent a letter to Secretary of State Marco Rubio providing a strategy for AI safety collaboration with China, including a global pause on AI recursive self-improvement and superintelligence and require AI models to be audited before release, creation of an international inspection agency or nongovernmental organization for verification. (Axios)

• Sens. Katie Britt (R-AL) and Raphael Warnock (D-GA) sent a letter to Attorney General Todd Blanche urging the Department of Justice to provide state and local law enforcement agencies with guidance on how to prevent the misuse of automatic license plate readers (ALPR), like Flock Safety cameras. (Letter)

• Sen. Ron Wyden (D-OR) sent a letter to Portland technology firm Sightline Intelligence requesting information about how it trains AI software for use in high-resolution cameras. (Letter)

• House Committee on Homeland Security Bennie Thompson (D-MS), and Reps. James Walkinshaw (D-VA), and Delia Ramirez (D-IL) introduced the CISA Force Structure Assessment Act to require the Director of CISA to determine whether the agency still has the personnel, training, certifications, and resources needed to protect federal networks, support state and local governments, and secure critical infrastructure. (Text)

Publications and Events

• Reps. Sam Liccardo (D-CA) and Kevin Kiley (I-CA) introduced a framework to establish U.S.-China coordination on frontier artificial intelligence safety. (Framework)

• Rep. Ted Lieu (D-CA) published on op-ed on Fox News entitled “The robots aren’t the threat. It’s the ‘depraved’ AI already here that should scare you.” (Op-ed)

Trump Administration

White House

• The White House issued a fact sheet detailing various agreements made between the President and Chinese President Xi Jinping during talks, including, “The two leaders agreed to use the term ‘super intelligence’ rather than ‘artificial intelligence’ to describe the applicable emerging technologies” and “The two countries established the U.S.-China Super Intelligence (SI) Dialogue to exchange views on risks and benefits related to SI. The next exchange will occur by November 2026. The United States and China also agreed to establish a bilateral communication channel for SI incidents.” (Fact sheet)

• Treasury Secretary Scott Bessent is reportedly a potential frontrunner for President Trump’s new “AI czar” position. (Semafor) The President denied the report on social media.

Centers for Disease Control and Prevention (CDC)

• The CDC published a Request for Information seeking broad public input on how data intermediaries can be used to support secure, scalable, standards-based public health data exchange. (Federal Register)

Noteworthy Quotes

ADMINISTRATION

White House

• President Donald Trump rejected a global entity for AI oversight, saying the U.S. “rejects any attempt to construct a globalist scheme to control [AI].” (Politico)

• Trump also said, “We’re leading now over China by a lot and everyone else, and we’re going to keep it that way. We’re going to keep it very, very straight and very strong. I’m not going to stifle growth of anything that’s going to be bigger than the Industrial Revolution. We will be very careful, and that’s why we have a Department of Justice.” (Politico)

• On changing the term “artificial intelligence” to “super intelligence,” Trump said, “It is not fake, it’s actually amazing. From this point forward, all United States documents and hopefully the world’s will be changed to use the much more accurate term, super, as opposed to artificial. So it’s super intelligence. In other words, welcome to the new world of super intelligence dash SI.” (Politico)

• Trump posted “Scott Bessent will not be going to be Super Intelligence (SI) Czar. Number One, he doesn’t want to. Number Two, he’s doing such a great job at Treasury, and that’s where I want to keep him! Why would I ever make such a change? Just more Fake News! President DONALD J. TRUMP”

• Trump also posted “A big day with President Xi of China. Super Intelligence (SI) will be a big topic of discussion, but I want to leave it exactly where it is. That is China’s position also. Our guardrail is the DOJ! President DJT”

• Trump also posted “Very productive meeting with President Xi for both the U.S.A. and China. Tremendous things will be happening. Like almost everyone else, he seemed to like calling the poorly and inaccurately named Artificial Intelligence to a far more accurate and important name, SUPER INTELLIGENCE. That would be ‘SUPER!’ Everyone last night agreed, also. President DJT”

• Trump also posted “Many people think that the words ‘Artificial Intelligence’ are inaccurate, and very ineloquent, relative to AI, or Artificial Intelligence. A far more elegant and accurate description of this new phenomena would be Superior Intelligence (SI) or, Extreme Intelligence (EI) or, Supreme Intelligence (SI). This is a Poll, and I would appreciate everybody voting! Which is the best name for this ever growing ‘Revolution?’ President DONALD J. TRUMP”

• In a series of polls on renaming “artificial intelligence,” Trump posted “‘Supreme Intelligence,’ probably because of its relationship to the Supreme Court, is losing badly to both ‘Superior’ and ‘Extreme Intelligence.’ Therefore, we are going to take ‘Supreme Intelligence’ OUT, deleting it as a qualifier, and let you vote for the Final Two: Superior Intelligence, or Extreme Intelligence. A fresh Vote begins now! President DONALD J. TRUMP”

• First Lady Melania Trump reconvened members of Fostering the Future Together, a coalition of fifty-seven participating countries and private-sector technology partnerships to empower children through technology and education. In remarks, she said, “Today, we can converse with AI, video call our families from any place on the planet, hold an entire computer in the palm of our hand, use self-driving cars, enter virtual worlds, and use biometric ID to access our bank accounts, airport terminals, and homes. The list is exhaustive. Artificial intelligence is transforming entire business sectors and expanding how humanity accesses the largest corpus of information ever available to humanity. But access alone is not empowerment. We must give our children the tools—and teach them how to use those tools wisely.” (Press release)

CONGRESS

U.S.-China Relations, AI Diplomacy, and Global Standards

• In floor remarks, Sen. Roger Wicker (R-MS) said, “I know the president intends to discuss trade and artificial intelligence with the Chinese leadership—and rightfully so. Perhaps some progress will be made. But, Mr. President, during every minute of dialogue, our commander-in-chief should keep in mind that his guest is a brutal, unelected, and oppressive dictator who seeks to dominate his neighbors and whose massive military arsenal is aimed directly at the United States of America.” (Press release)

• Sen. Steve Daines (R-MT) said, “I was just in Hangzhou a few weeks ago. Hangzhou, China is a city about the size of New York City. It’s one of the epicenters of AI innovation for China. Zhejiang University is there, which got ranked number one in the world in research, actually ahead of Harvard for the first time in 20 years. We cannot take lightly what China is doing right now in this AI race. It’s very important that we continue to lead. Peter, I agree with you. We lead right now in terms of capabilities on these frontier models, but where we’re behind is in adoption of AI. We’re ranked 24th by Stanford. China’s ranked second behind the UAE. So, this is all about ensuring that we have the right kind of guardrails in place, but not inhibiting innovation. That takes wise and thoughtful leadership here in the United States. This is not a good time to have a public discourse on. As you can see, there’s this kind of hysteria in Washington. When you’re 41 days away from an election, it’s not a good time to be having public debate right now in AI. It’s really become almost hysterical. We need to have calm, thoughtful heads prevailing in this discussion…I think there’s probably both. I will say this. I applaud what Secretary Bessent has been framing in terms of trying to deconflict what could be pinch points and friction as it relates to AI between our two countries. Similar to mill-to-mill kind of engagements, if two subs bump in the night in the Taiwan Strait we want to have a mill-to-mill red phone there to deconflict. I think the same thing could be true for AI. Secretary Bessent is on the right track there. But I think the Chinese listen to both. I think it’s important that the right kind of rhetoric and tone is set at the top because the governments will flex down through the bureaucracies according to how the leaders flex. If Xi Jinping and President Trump are having positive dialogue, we need to have that kind of dialogue down the stack from a bureaucratic viewpoint as well as in the private sector.” (Press release)

• Daines told reporters, “We all recognize there’s the downside [of AI]. It’s usually not a good idea, in the fever pitch of campaigns, to be sorting through serious policy issues here in Washington when, right now, it’s become very politicized.” (Punchbowl)

• Daines posted “POTUS & SecScottBessent’s positive dialogue with China is a good thing as it relates to AI.”

• Daines posted “China is building out a world class innovation system, and is ranked higher than the U.S. in AI adoption. We need to ensure America remains the global leader in AI, tech, and innovation.”

• In floor remarks, Sen. Ted Budd (R-NC) said, “China’s cyber-threats to the U.S. government have been well documented and damaging to our government and private sector even before the rise of artificial intelligence. The AI race is not simply about who builds the most powerful model. It is about who will set the standards, safeguards, and norms that will govern one of the most consequential technologies of our time. Beijing’s national AI strategy calls for China to reach world-leading levels in artificial intelligence by 2030 and surpass the U.S. That reality should alarm us all—especially given that these models are being developed within fundamentally different political systems. China is developing and deploying AI within its authoritarian system that employs censorship and state surveillance. In dramatic contrast, our models are being developed under constitutional principles that promote free speech, value individualism, and encourage private enterprise. As the Senator from North Carolina, a state with a growing tech industry, thriving pharmaceutical manufacturing, a pivotal financial sector, and a critical agriculture industry, my state represents many of the successes the PRC aspires to. Failure to maintain American dominance in these industries threatens to leave our nation vulnerable and decimate the economic growth and development that has benefited North Carolina and many others. I rise today to urge this body, and our entire federal government, to engage with China with our eyes wide open, and without compromising our values, our security, or our strategic interests. Not because we expect our differences to disappear, but because those differences are too consequential to ignore. We must continue to invest strategically in our national defense and prioritize AI engineering that promotes safety. As a nation, the United States is the most uniquely positioned to hold China accountable for exporting deadly drugs, evading sanctions in support of Iran and Russia, and for waging a war on religion. So, in that vein, Congress cannot rest in its vigilance to contain the China threat.” (Press release)

• Sen. John Barrasso (R-WY) delivered floor remarks saying, “President Xi last visited the White House 11 years ago. Today he’s going to arrive to a very different America and a very different president. A decade ago, Barack Obama was in the White House. The Obama policy with regard to China was appeasement, it was accommodation, and it was apologies. Obama’s weakness gave China free rein, free rein to undermine our economy and our national security. China spied on American businesses. They stole American technology. China strengthened its grip on global supply chains. As Democrat climate alarmists forced the closure of our coal-fired power plants, China built new ones. They continue to build them today in the race for power and the competition over artificial intelligence. From new technology to global supply chains, China’s goal is to be the military, the economic and the technological superpower of the world. China wants to push America aside. Their vision is not cooperation. It’s not even competition. It’s complete control. The American people want safety, prosperity and freedom. That’s what we want at home in America. America can’t be free if we’re dependent upon China for our medicine, for our materials and for our minerals. We need to do more. America can’t continue to lead the free world if we allow China to steal our best ideas and our newest technologies. We must stand firm. America needs to stand strong.”

• Senate Democratic Leader Chuck Schumer (D-NY) delivered floor remarks saying, “Now on the Xi Jinping visit, as Donald Trump hunts for a headline in a photo op with Xi Jinping today, he’s at risk of losing sight of what’s at stake for the American people. Trump risks giving China a leg up on a variety of issues if he bends the knee to Xi. As I’ve been warning not only for weeks, but actually for years, Trump cannot let the Chinese Communist Party get its hands on our most advanced AI chips and manufacturing equipment. If Trump truly wants to preserve America’s lead in the AI race, the answer is to prohibit the sale of this cutting edge technology to China, not to let AI development continue without guardrails. We all ought to be concerned by Trump handing over this tech to China, which is why Senator Warren and I, along with Senators Slotkin and Kim, will be holding a press conference today on the urgent need to tighten export controls and cut off the flow of our AI technology to the CCP. AI is just one area where there’s a risk of Trump selling out America. We’ll be closely watching what Trump does across the spectrum of challenges that the U.S. faces with the PRC. Trump has already undermined America’s competitiveness by gutting federal R&D and technical training and making it harder for American companies to recruit top talent from abroad.”

• Schumer also said, “Trump continued to downplay the dangers of AI during his speech at the UN General Assembly today – completely ignoring the concerns of the American people and the people of the world. After rambling on about how he wants to rename ‘artificial intelligence’ ‘super intelligence,’ Trump said he’ll oppose, oppose any global effort to regulate AI. Trump said, ‘we will only encourage superintelligence. We’re going to encourage it, not rein it in.’ Seriously? Talk about a formula for disaster. Let’s be absolutely clear: stepping away from the table on AI governance, at the same time the administration has defunded and withdrawn from countless international organizations, is a massive gift to China who would be thrilled to fill the gap Trump is creating. China is already doubling down on maximizing its influence at the UN and creating its own international organizations on AI so it can set the rules of the road for this new technology. That’s what America should be doing, Donald Trump. You’re creating vacuums, letting the Chinese fill them, and then rant against them. Even the industry leaders building AI are calling for guardrails. Everybody seems to recognize the potential dangers of unchecked AI development except Donald Trump. What does Trump know that we don’t? What makes Trump think that AI is harmless? America is asking that big, looming question.” (Press release)

• Schumer told reporters, “What Trump should do when he meets with Xi is draw a line in the sand and say that blocking China’s access to our cutting-edge AI technology is non-negotiable. We’ve got to move before it’s too late.” He added, “But if they can’t get our chips, they’re going to need us much more and be much more pliable in a negotiation.” (Punchbowl)

• As part of a statement, Chris Coons (D-DE), Patty Murray (D-WA), Jack Reed (D-RI), Jeanne Shaheen (D-NH), Mark Warner (D-VA), Elizabeth Warren (D-MA), and Andy Kim (D-NJ) said, “President Trump must reverse course. He must end China’s access to the advanced chips and manufacturing equipment it needs to build dangerous AI systems.” (Press release)

• In his letter to Secretary of State Marco Rubio, Rep. Ro Khanna (D-CA) said, “Just like America and the USSR set aside our vast differences to save the world from nuclear war, the U.S. and China share a common interest in ensuring humans never lose control of AI.” (Axios)

• Rep. Jimmy Panetta (D-CA) posted “As the U.S. works to maintain its competitive edge when it comes to AI, we also must lead on establishing clear global AI standards and security, starting with China. That’s why I joined a bipartisan group urging the President to strengthen AI testing, reporting, and international coordination to bolster our technological leadership while protecting our national security.”

• Rep. Bill Foster (D-IL) posted “AI is advancing at a concerning pace, and Congress needs to act. Meanwhile, President Trump wants to sit on his hands and “leave it exactly where it is.” He had the opportunity to make progress with China this week on global AI cooperation, but he is more interested in protecting Big Tech billionaires than safeguarding Americans from potentially dangerous technology.”

• Sen. Chris Van Hollen (D-MD) posted “Frontier AI models pose risks for all of humanity today. We must hold AI companies liable for harm, but we must also do more to avoid it in the first place. Trump’s refusal to negotiate guardrails with China puts us all at risk.”

• Sen. Chris Van Hollen (D-MD) posted “Trump says he opposes any effort to regulate AI, but it’s clear we cannot wait. It would be malpractice against the American public if he fails to use this summit with Xi to negotiate mutual safeguards to protect us & the world from catastrophic harm.”

• Sen. Chris Murphy (D-CT) said, “I don’t think there’s any path forward without us being in a conversation with the Chinese and the rest of the world on basic AI safety guidelines, the most important of which is maintaining human control over these systems. So it is heartbreaking to me to listen to the president essentially swear off any kind of engagement with the world that would involve any kind of constraint on research in the United States.” (Press release)

• Rep. Grace Meng (D-NY) posted “This week, the leaders of the world’s two leading AI superpowers will meet. AI is advancing fast—and the world needs clear lines of communication and meaningful guardrails to manage its risks. American leadership and diplomacy can help lead the way. I joined 28 of my Democratic colleagues to call for a sustained and substantive dialogue with China to address AI-related safety risks.”

• Sen. Tina Smith (D-MN) posted “We needed a comprehensive agreement with China to a mutual slowdown of AI development. Instead, we get nothing.”

• Rep. Sam Liccardo (D-CA) posted “We need AI experts in the United States to be able to talk to their counterparts in China to forge shared safety metrics, rigorous evaluation protocols, standardized testing, and critical verification mechanisms”

• Rep. Rich McCormick (R-GA) posted “This week, President Trump is hosting President Xi of China for a high stakes summit. There is a lot to discuss. Trade. Taiwan. Rare earths. AI. And what the future of the U.S.-China relationship looks like. Around 21% of global trade passes through the Taiwan Strait, and Taiwan produces the vast majority of the world’s most advanced AI chips. The stakes for American economic and national security could not be higher. These conversations matter, and America must negotiate from a position of strength.”

• Sen. Ben Ray Luján (D-NM) posted “As President Trump hosts President Xi, I’m joining ChrisVanHollen and our colleagues in calling for serious negotiations with China on clear, enforceable guardrails for the most powerful AI systems. The U.S. must lead the world in setting standards that keep Americans safe.”

• Rep. Nicole Malliotakis (R-NY) posted “As President Xi visits the United States, we must recognize that Communist China is sometimes an ally, sometimes an adversary but always a competitor—that’s especially true in the AI race.”

• Rep. Greg Stanton (D-AZ) posted “Today CmteOnCCPDems held an emergency hearing calling for a U.S.-China agreement to responsibly pace the development of AI. If Trump walks away without real progress on AI, he will have missed the mark.”

• Rep. Kristen McDonald Rivet (D-MI) posted “President Trump is meeting with President Xi tomorrow to talk about AI. Here’s what needs to happen: As the U.S. competes with China to lead the world on AI, we need protections for people’s jobs, safety, & opportunities. That only works if it’s on a global scale. This summit is the time to be tough on China & establish universal guardrails to protect Americans’ security & pocketbooks.”

• Rep. Sara Jacobs (D-CA) posted “AI safety and diplomacy must be at the top of the agenda when President Trump meets with China’s President Xi Jinping. This no-holds-barred race with China over AI is leaving both our countries and the world more vulnerable. We need consistent, bilateral dialogue.”

• Sen. Alex Padilla (D-CA) posted “AI doesn’t care about borders. It’s developing at breakneck speed and will impact everyone. That’s why I joined ChrisVanHollen in urging Trump to seek a U.S.-China agreement on AI safety, including a possible mutual pause to address guardrails around its use and biological weapons risks.”

• Sen. Patty Murray (D-WA) posted “We need smart, GLOBAL AI safety guardrails to protect our kids, jobs, and futures. Instead of focusing on lavish dinners, Trump needs to focus on negotiations. I’m calling on him to take this threat seriously and work out real AI safeguards with China.”

• Rep. Brian Fitzpatrick (R-PA) posted “As AI capabilities accelerate, so do the national security risks—from threats to critical infrastructure to dangerous miscalculation in a crisis. Ahead of Xi’s visit today, our Problem Solvers Caucus AI and Evolving Technologies Working Group called on the Adminstrarion to implement a coordinated international framework on AI safety and security—anchored in American standards for testing and incident reporting, stronger infrastructure protections, and firm safeguards against AI-enabled cyber aggression. The rules governing advanced AI are being written now. America should shape them before our adversaries do—and ensure they protect our security, strength, and technological leadership. Read our letter below”

• Rep. Sarah Elfreth (D-MD) posted “As AI continues to rapidly evolve, we need regulations at home and abroad. I’ve joined RepYassAnsari and over 40 of my House Democratic colleagues in urging the Trump Administration to establish a coordinated global framework with our allies to regulate AI development. Especially as we grapple with the uncertainty of these advancements, it’s all the more important to work with our longstanding allies to ensure true global security.”

• Rep. Pramila Jayapal (D-WA) posted “Just wrapped up a great week at the United Nations General Assembly, where I met with leaders from across the world, and even discussed AI with Joseph Gordon Levitt, the UN’s first Global Advocate for Human-centric Digital Governance. This week was a powerful reminder of what we can accomplish through diplomacy and collective action. I look forward to continuing this important work.”

• Sen. Catherine Cortez Masto (D-NV) posted “We need global standards for AI safety and transparency to protect workers, our families, and our national security.”

• Sen. Angela Alsobrooks (D-MD) posted “America needs to be a leader in this moment. The U.S. needs to push for clear global standards on how AI models are developed, tested, and used.”

• Rep. Seth Magaziner (D-RI) posted “We’re seeing the risks of the AI race unfold in real time. Selling advanced AI chips to China would make those risks worse. I’m joining 14 of my colleagues in urging President Trump: Do not sell advanced American AI chips to the Chinese government.”

• Sen. Andy Kim (D-NJ) posted “We can’t give China the technology to manufacture advanced chips for AI. That’s what the MATCH Act is all about and why we need to act now.”

AI Safety

• Rep. Josh Gottheimer (D-NJ) posted “I’ve been Co-Chair of the House AI Commission for nearly a year, and it feels like every couple weeks, something new happens with the technology that raises cause for concern. AI brings amazing benefits and can transform our economy, but with those benefits come potential risks. That’s why I’m fighting for commonsense guardrails to protect our cybersecurity, biosecurity, critical infrastructure, and national security.”

• Gottheimer posted “AI can present transformative opportunities in areas like health and science, but it also comes with serious risks to our national security, cybersecurity, and critical infrastructure. That’s why I’m fighting for commonsense guardrails that put Americans first.”

• Rep. Yvette Clarke (D-NY) posted “I commend NewYorkStateAG for recognizing the real danger of unregulated AI. Democrats have been sounding the alarm: AI is advancing faster than the guardrails meant to protect our privacy, civil rights, consumers, and communities can keep up, and it’s clear Big Tech cannot be left to police itself. Congress has a responsibility to provide real oversight, transparency, and accountability here. Innovation without oversight is not progress; it’s a risk, and Congress must act.”

• Sen. Lisa Blunt Rochester (D-DE) posted “The AI race is out of control and our president is rambling on about how we talk about it. Call it whatever you want, but we need to start taking these threats seriously.”

• Sen. Lisa Blunt Rochester (D-DE) posted “How worried should we be about AI? Let’s ask.”

• Rep. Brittany Pettersen (D-CO) posted “As AI continues to advance, we need commonsense guardrails to keep the public safe. That starts with independent audits, making sure federal agencies have the funding & expertise to oversee these systems, and ensuring any AI that fails safety checks cannot be deployed in the U.S. New Tech should empower people, not put them at risk. It’s up to us to make sure that stays at the center of innovation.”

• Rep. Ted Lieu (D-CA) posted “Advanced AI models should be built from the ground up with good in mind, not evil.”

• Sen. Elizabeth Warren (D-MA) posted “We can’t trust AI companies to regulate themselves. It’s time for Congress to start taking AI seriously and put safeguards in place to protect Americans.”

• Sen. Mark Warner (D-VA) posted “AI security is the issue of our lifetimes. I will NOT stand by and wait for a catastrophe to happen — I’m fighting to pass basic safety legislation TODAY.”

• Sen. Mark Warner (D-VA) posted “Join me as I speak on the Senate floor about the urgent need to pass guardrails around AI.”

• Sen. Mark Warner (D-VA) posted “Later today, I’m headed to the floor to try and force a vote to get urgent protections done around AI. We cannot wait any longer. We must take action to put some guardrails on this tech before something catastrophic happens.”

• Sen. Chris Coons (D-DE) posted “Americans deserve transparency from AI companies about what they’re doing to place safety guardrails on their models. I’ve got a bipartisan bill to do just that.”

• Sen. Todd Young (R-IN) posted “I am calling for the National Security Council to hold regular meetings on the emerging national security threats posed by advanced AI systems. America must continue to lead the world in AI while staying ahead of the security challenges posed by this rapidly advancing technology.”

• Sen. Andy Kim (D-NJ) posted “Innovation without control just leads to chaos. We’ve heard the doomsday scenarios about AI. This is our moment to reassert control. That’s why I introduced the Artificial Intelligence Risk Management and Security Act alongside MarkWarner and SenBrianSchatz to evaluate risks and establish the safeguards Americans are demanding.”

• Rep. Bill Foster (D-IL) posted “There is important work to be done in Washington, but Speaker Johnson sent everyone home until after the election. I’ve joined my colleagues in calling on Johnson to bring Members of Congress back to Washington so we can get to work on AI.”

• Rep. Suhas Subramanyam (D-VA) posted “Americans want safeguards on AI especially when it comes to our air safety.”

• Rep. Lori Trahan (D-MA) posted “Massachusetts families deserve the strongest protections from the risks posed by powerful AI models. I’m grateful to Barry Finegold for leading the fight to pass serious guardrails. Congress should follow the Commonwealth’s lead and extend these protections to every American.”

• Rep. Kelly Morrison (D-MN) posted “The threat from AI is serious. We need a president who will take it seriously.”

• Rep. Pramila Jayapal (D-WA) posted “Republican politicians might claim they now want AI regulation, but last year, they gave billions in tax breaks to some of the very AI companies that are putting our safety at risk. Don’t let them avoid responsibility. We need action, not more empty words.”

• Rep. Hillary Scholten (D-MI) posted “AI safety cannot wait. It’s time for Congress and global leaders to work together to ensure AI is regulated responsibly and for the good of humanity.”

• Rep. Mike Lawler (R-NY) posted “As AI becomes more prevalent in our lives and has the ability to impact our national security and capital markets, we should be testing these systems to ensure they are safe to use and do not negatively impact the American people. This is why I believe there needs to be collaboration between the private and public sectors to make sure this technology is tested and able to be used safely.”

• Rep. Jimmy Panetta (D-CA) posted “The AI boom has significant potential but creates serious new threats. Leadership must be shown at all levels of government to implement guardrails that ensure that AI deployment is safe, stable, and secure.”

• Rep. Ro Khanna (D-CA) posted “I asked Dr. Geoffrey Hinton and Lt. Gen. Shanahan if the US has the technical capacity to monitor advanced AI models at frontier labs. They said no. We need a new generation of leadership that understands technology and can build this capacity for our government.”

• Sen. Chris Murphy (D-CT) posted “At the UN yesterday, I talked about the need for Congress to move fast on AI regulation, while not laboring under the illusion we have to do it all at once. There is, I argue, some low hanging fruit we can start with - like model security, deep fakes, and protecting kids.”

Rogue AI Agents, Human Control, and Cybersecurity

• Rep. Don Beyer (D-VA) posted “We’re hearing about AI loss of control incidents almost daily. This time the targets were US government websites like the Department of Education, Census Bureau, and SEC. Congress must take action to protect the American people, doing nothing right now is wildly irresponsible.”

• Rep. Josh Gottheimer (D-NJ) posted “Rogue agents are now trying to infiltrate our own government systems — this is cause for real concern. Congress must come back to Washington and pass bills like my bipartisan Stop Rogue AI Act so we can protect American families and our national security.”

• Rep. Josh Gottheimer (D-NJ) posted “The rise of autonomous cyberattacks conducted by rogue AI agents is a five-alarm fire. That’s why my Stop Rogue AI Act matters: every agent needs a ‘driver’s license’ so that we can track, verify, monitor, and control agents before they can do harm.”

• Rep. Nikki Budzinski (D-IL) posted “Recent cyberattacks and security incidents involving AI agents, alongside warnings about loss of control from those who have worked in AI, cannot be ignored. Congress should act now to ensure that this technology is advancing responsibly, within strict guardrails, with the safety of the American people as our top priority.”

• Rep. Tom Kean (R-NJ) posted “While AI can be a helpful tool, it is essential that humans remain in control of complex artificial intelligence systems. The AI Emergency Button Act would ensure that advanced artificial intelligence systems include a technical capability for a human operator to shut down the system. I am pleased to introduce the House companion bill to Senator Kennedy’s Senate version.”

• Sen. Ed Markey (D-MA) posted “OpenAI admitted its agents hacked an Australian government website—three months after it happened. We can’t trust these companies to admit their failures. We need a Cybersecurity & AI Board of Investigations to demand answers from the rogue people behind these ‘rogue agents.’”

• Sen. Andy Kim (D-NJ) posted “We needed to get a handle on AI yesterday — and this is why. AI agents autonomously hacking into government websites is incredibly dangerous and a threat to the national security of every country in the world. It’s terrifying to think of what could happen next. We must act now to set guardrails for the use of AI models and ensure proper human oversight of them.”

Independent AI Oversight Agency

• Sen. Michael Bennet (D-CO) posted “This should be a wake-up call: we urgently need an independent agency with the authority to set and enforce real rules for AI and Big Tech.”

• Sen. Michael Bennet (D-CO) posted “We need a cop on the beat to protect the safety of the American people from the risks of AI. That’s why I’m introducing an independent agency to oversee AI innovation and ensure Big Tech companies play by the rules.”

• Sen. Michael Bennet (D-CO) posted “I’m proposing an independent federal agency to regulate AI and big tech. We need to act before serious harm occurs and hold these companies accountable when they break the rules.”

• Sen. Peter Welch (D-VT) posted “Artificial intelligence is at a tipping point. Experts are telling us the dire consequences of inaction. That’s why I’ve reintroduced legislation with SenatorBennet to establish an independent agency to protect Americans from the harms of AI.”

Superintelligence Ban

• Rep. Chris Deluzio (D-PA) posted “I’m a proud original cosponsor of @SenSanders & RepCasar’s bill to ban AI superintelligence. If a technology has power beyond human ability to stop it, leaders—elected by the American people—must act. We cannot leave our destiny in the hands of tech corporations and their executives.”

• Sen. Bernie Sanders (I-VT) posted “The leading experts are clear: AI is rapidly escaping our control. Congress must act NOW. Today I’m introducing legislation to permanently ban artificial superintelligence and pause advanced AI until clear safety rules are in place.”

• Rep. Anna Paulina Luna (R-FL) posted “Bernie Sanders is pushing AI legislation that he allegedly drafted with consultants from the U.K. Call me crazy, but America probably shouldn’t outsource its AI policy to a country that prosecutes its own citizens for Facebook comments.”

Federal AI Framework and Regulatory Approach

• Rep. James Comer (R-KY) posted “COMER: “Every Democrat in Congress when you say ‘regulations’ their ears perk up. Democrats love regulations. It’s because they want to create a bunch of new government agencies and bureaucracies and hire new federal employees. That’s not the way to address AI.” FoxBusiness”

• Rep. Jay Obernolte (R-CA) posted “The United States can address the real risks posed by artificial intelligence while ensuring our regulatory approach does not undermine American innovation and global leadership in AI. I recently joined Bret Baier on Special Report with Rep. Lori Trahan to discuss our bipartisan FRONTIER Act and the need for a thoughtful approach to AI policy.”

• Rep. Nick Langworthy (R-NY) posted “AI is the moon race of our time. America needs one, unified federal AI policy with smart guardrails. We can achieve responsible innovation. The country that owns the intellectual property and ability to execute AI will be the next global superpower.”

• Rep. Nick Langworthy (R-NY) posted “Congress has put hundreds of hours of bipartisan work, hard work, into establishing an America First AI policy. The process of this cannot be the ‘Wild West,’ with 50 states writing 50 different sets of rules. America needs one clear federal framework that protects people while strengthening innovation here at home. Most importantly, we need to ensure that our adversaries and bad actors do not gain the upper hand in the development of this technology. This is the Cold War of our time.”

• Rep. Nicole Malliotakis (R-NY) posted “The bipartisan FRONTIER Act would bring greater transparency, oversight and accountability to advanced AI systems to protect consumers, privacy and national security.”

• Sen. Steve Daines (R-MT) posted “When it comes to AI, we need to put the right guardrails in place that protect the American public without inhibiting American innovation.”

Data Centers

• Sen. Chris Coons (D-DE) posted “Delawareans are worried about what AI and massive data centers mean for their communities. Their fears are real. We should lead the world in AI and compete with China, but we can’t let a couple billionaires decide what happens to the rest of us.”

• Rep. Rich McCormick (R-GA) posted “America needs data centers to win the AI race. But hardworking families should not be stuck with the bill. The Ratepayer Protection Act passed the House 417–3 to protect ratepayers from infrastructure costs driven by new data centers. Georgia families cannot afford to wait while Washington debates. The Senate should pass the bill.”

• Rep. Mike Levin (D-CA) posted “The next chapter of America’s economy is being written as we speak. Data Centers. AI. Energy. The question is whether we build an economy that is cheaper, cleaner, more reliable, and actually working for American families. This week, I got to chat with Axios about something I’ve been working on for a long time: my chapter of the Thriving Economy Project, our blueprint for the future. Because we cannot meet tomorrow’s challenges with yesterday’s infrastructure. We need more energy, a stronger grid, faster innovation, and a plan to make damn sure families aren’t the ones stuck paying the bill.”

• Rep. Jason Smith (R-MO) posted “The United States MUST win the AI race. Legitimate concerns about data centers are being exploited by foreign adversaries seeking to create division and sow chaos. These debates should happen between our neighbors. Instead, Communist China is abusing our tax code to manipulate public opinion as they work to undermine American AI infrastructure development and hurt our nation. This must stop.”

Workforce

• Rep. Riley Moore (R-WV) posted “AI must be a force multiplier for American workers, not a replacement. AI and robotics must be used to make jobs safer, extend careers, boost productivity, and preserve the dignity and purpose of work.”

• Rep. Jimmy Panetta (D-CA) posted “As emerging AI reshapes our education system and workforce, the federal government needs to step up with guardrails and programs to protect our students, teachers, and working families. I’m proud to support the Artificial Intelligence Education and Workforce Readiness Act, which would create enforceable safeguards and invest in professional development programs to empower students and working families while ensuring AI is deployed responsibly.”

• Sen. Mark Kelly (D-AZ) posted “As AI changes our economy, workers and their families should come first, not the bottom lines of tech CEOs. My Make AI Work for Americans Act creates the AI Horizon Fund to support workers and help them succeed, paid for by Big Tech and the companies benefiting most from AI.”

• Sen. Mark Kelly (D-AZ) posted “When I flew off aircraft carriers and launched into space, we fixed problems before people got hurt. That’s why I’m introducing the Make AI Work for Americans Act, which taxes the companies benefiting the most from AI and uses that money to invest in workers and give them more opportunities.”

• Sen. Mark Kelly (D-AZ) posted “When I flew off aircraft carriers and launched into space, we fixed problems before people got hurt. That’s why I’m introducing the Make AI Work for Americans Act, which taxes the companies benefiting the most from AI and uses that money to invest in workers and give them more opportunities.”

• Rep. Rich McCormick (R-GA) posted “People across my district keep asking me the same question: ‘Is AI going to take my job?’ It is a fair question, and hardworking Americans deserve clarity. AI will create more opportunity than it displaces, from medicine and manufacturing to the skilled trades. Every great technological revolution has created disruption, before leading to decades and centuries of new prosperity. The answer is not for Congress to rush in with sweeping new regulations that pick winners and losers, kill American innovation, and hand China an advantage. Our job is to enforce the rules already on the books, protect Americans, and give the private sector room to build, compete, and keep the United States ahead of our adversaries. America should lead the AI revolution, not regulate itself out of it.”

Health Care

• Rep. Mark DeSaulnier (D-CA) posted “In EdWorkforceDems, we have been working to address the concerning rise of wrongful health insurance disputes and denials thanks to AI. Not only is it immoral, but it is driving up healthcare costs for all Americans. We must address this now.”

• Rep. Pramila Jayapal (D-WA) posted “Hospitals are using AI to submit insurance claims, insurance companies are using AI to dispute or deny them, and costs are up for everyone under this broken system. No more AI denials. No more unnecessary administrative costs. We need Medicare for All.”

• Rep. Greg Landsman (D-OH) posted “In light of a new report highlighting the Administration’s dangerous use of artificial intelligence to restrict healthcare, we’re calling for the immediate end of the use of AI to deny Medicare and a GAO investigation into the WISeR model. This program has serious issues, yet their plans are to expand it nationwide. Read more.”

• Rep. Suzan DelBene (D-WA) posted “The Trump administration’s experimental AI program incentivizes private companies to delay & deny Medicare treatments in WA & 5 other states. I’m fighting to get answers from the administration on how this is impacting our seniors. They’ve yet to provide any real transparency or accountability.”

Surveillance, Privacy, and Data Protection

• Rep. Russ Fulcher (R-ID) posted “It comes as no surprise that Flock, a mass surveillance system, is now asking the government for privacy. Public maps are one of the few tools Americans have to maintain transparency and accountability over these surveillance systems. Americans want privacy. Not mass surveillance.”

• Rep. Russ Fulcher (R-ID) posted “The FBI is investigating recent reports of a sophisticated data breach of its systems. This serves as an important reminder for all Americans to safeguard their private data. I remain committed to protecting Americans’ data and privacy from warrantless searches, criminals, and hostile nations, while ensuring our law enforcement and intelligence agencies have the technological tools necessary to keep our nation safe. Here are some best practices for evaluating your own online security.”

• Rep. Pramila Jayapal (D-WA) posted “I’m introducing a moratorium on our government’s use of facial recognition technology with Senator Markey. Every American deserves a reasonable expectation of privacy. We need to stop the constant, nonconsensual state of surveillance.”

• Rep. Greg Casar (D-TX) posted “This San Antonio Express-News op-ed is right: corporations mining your personal data and supercharging it with AI to set your price is sinister. It’s why I wrote the first federal bill to ban surveillance pricing.”

• Rep. Michael Cloud (R-TX) posted “Yesterday, the Senate Judiciary Committee held a hearing on Flock Safety and other AI surveillance networks. Witness Lindsey Isaacs shared how she was asleep in her apartment when state troopers pounded on her door and accused her of killing three people. Their evidence? A Flock camera picture of her car. She spent 13 days in jail for a crime she didn’t commit. Flock has over 120,000 cameras across the U.S. that create 20 billion scans every month. Networks like this pose real threats to Americans such as Lindsey. That’s why I co-led the No FLOCK Act to rein in unchecked surveillance.”

Quantum Technology

• Sen. Todd Young (R-IN) posted “Quantum technologies are critical to our national security and economic competitiveness. I joined quantum technology leaders to discuss American leadership in this sector and how the Midwest is critical to this effort. The Bloch Quantum Tech Hub, which includes partners in northwest Indiana and was created through the CHIPS Act, leverages the Midwest’s academic and manufacturing assets to help with quantum technology development.”

• Rep. Glenn Ivey (D-MD) posted “Maryland is building the Capital of Quantum right here in Prince George’s County. I joined Governor Wes Moore and our partners to celebrate the opening of the new Discovery Center in College Park, home to Microsoft’s new quantum research center and space for the next generation of quantum startups. This is how we turn groundbreaking research into new companies and good paying jobs, ‘making Maryland the best place in the world to change the world.’”

Miscellaneous

• Sen. Chris Coons (D-DE) posted “Just grasping what AI is and what the experts are saying about it can be hard to get our heads around. I just watched a great documentary about how one filmmaker went about learning what AI is and what’s at stake - I urge you to give it a watch.”

• Rep. Mike Levin (D-CA) posted “The entire world is screaming about AI, and Trump’s doing what? He and his sons are investing in AI companies and data centers. His own investment accounts have bought shares in companies powering the AI boom. And he is the one making decisions that could affect what those investments are worth. And we wonder why Trump’s so opposed to regulating AI... The President’s job is to protect the American people, not his wallet.”

• Sen. Tina Smith (D-MN) posted “Trusting the same DOJ that covered up the Epstein Files to protect us from frontier AI… What could possibly go wrong?”

• Rep. Marlin Stutzman (R-IN) posted “PEACE THROUGH STRENGTH Proud of POTUS for making it clear on the world stage that the United States is not going to tolerate threats to our safety or freedom. Securing our border, rooting out terrorist regimes, and keeping America at the forefront of AI innovation is how we stay the greatest nation on earth!”

• Sen. Marsha Blackburn (R-TN) posted “Protecting kids from AI and online harm is non-negotiable. Congress must pass my Kids Online Safety Act to ensure platforms are safe by design. Big Tech is the only industry without basic safety standards and that has to change.”

• Rep. Yvette Clarke (D-NY) posted “With all its power and promise, AI can be a tool to bridge the disparities that have followed Black Americans for generations. Without meaningful regulation, it will be just one more excuse to expand them. Our AI Civil Rights Act will take on AI bias and bigotry at the source by mandating AI companies to keep discriminatory models far from the critical decisions that have the greatest impact on Americans’ lives. Our civil liberties do not end where prompts begin, and it is far past time for Congress to legislate like it.”

• Sen. Tammy Baldwin (D-WI) released a statement saying, “AI comes with great opportunity that we need to harness and also tremendous risks for our workforce and safety that we need to protect against. But right now, we are staring down all sorts of dangers, and Republicans, who control the White House, Senate, and House of Representatives, are refusing to act. I hear the calls from Wisconsinites who want some assurance that AI will not become capable of operating beyond human control. The time to act is now because we cannot trust Big Tech to do the right thing on their own, and the public should not bear the consequences when they get it wrong. In the short term, we must act to pump the brakes on these frontier models. We need an independent cop on the beat with the expertise and authority to stop deployment unless rigorous, independent testing shows that a model can be operated safely and kept under human control.” (Press release)

• Rep. Don Beyer (D-VA) released a statement saying, issued the following statement today on the Federal Aviation Administration’s (FAA) deployment of an AI Strategic Management of Airspace Routing Trajectories (“SMART”) system to manage flights at Washington area airports including DCA: “The FAA should not use my constituents as guinea pigs for an unproven AI air traffic control system. The safety of the 24 million people traveling through DCA each year must be the top priority. Residents of this region are still uncertain about air safety after last year’s fatal accident, and the Administration did shockingly little to educate the traveling public about this development before implementing it in one of the most complex airspaces in the world. Unfortunately, I was informed today that air traffic controllers were not consulted on the ‘SMART’ system’s design and development, and were not trained on using it prior to the system’s adoption at local airports. I was further informed that the air traffic controllers have been told the ‘SMART’ system can adjust schedules and potentially even routes. Despite outward appearances, the airlines reportedly were privately ‘panicking’ about the hasty implementation of this system. I do not know why the Administration felt the need to race it into use, but it is unacceptable to use AI as a substitute for rebuilding the human-directed air traffic controller workforce.” (Press release)

• In remarks at UNGA about balancing regulation and innovation in AI, Sen. Ruben Gallego (D-AZ), “I think we have to play a very big role in this, and I think we have to have the controlling role. Again, not to the point where we kill innovation, but at the same time, we also have to guard against potential bad breakouts — models that could go bad. On the benefit side, I think the most important thing is to actually share it across all of society. One of the things we’ve seen in the past, especially when it came to the advent of social media and technology, is that the wealth, concentration, and benefits were all kind of centered in certain population hubs. One of the lessons we should learn from that is trying to figure out how we can make AI — whether it’s open source or closed source — more universal.” (Press release)

• On requiring AI companies to report malign actors, Gallego said, “One of the things that I’m working on right now is to make sure that if you do have a bad actor that breaks into, you know, and starts using your frontier models, that you need to make the government aware of that. There is no requirement right now for anybody to actually make us aware if a bad actor actually has access to some very sophisticated, eventually, weaponry. What I am pushing is for us to actually create a select committee in the House and the Senate. The reason being is because AI is going to go into a lot of worlds, not just tech.” (Press release)

• In a panel discussion at UNGA, Sen. Chris Murphy (D-CT) said about the ability for Congress to legislate on AI, “I think there is some low-hanging fruit that is not particularly complicated. The deepfake threat is already real… that’s a pretty easy one to deal with, right? You could just outlaw them in politics, or require clear identification or watermarks in other contexts. Friendship bots, as I mentioned before, are poison for our kids. We can outlaw them writ large, or we can outlaw them for kids. And then you know what we’re talking about right now, which is some approval process for models, so as to guard against what we are seeing, and potentially [what] we’ll see at scale soon as they sort of jump out of containment… Those three things are achievable, not terribly political, and could foreseeably get done, and give the public then some faith that we maybe have the political capacity to handle some of the more nuanced threats down on.” (Press release)

• On Trump Administration’s views on AI development, Murphy said, “He’s giving the impression that his priority is to beat the Chinese on the issue of AI. But at the same time he’s signing off on agreements that would have been unthinkable just a year ago to give some of our most sensitive technologies to the Chinese, to basically invite them to lap us in this, in this AI race.” (Press release)

• On failing to regulate AI, Murphy said, “I worry about the China red herring blocking us from common sense domestic regulation. China would love nothing more than for the United States to do nothing to protect people spiritually and the economy generally from what AI could do unchecked. They would love for us to be the one that submits our citizens as guinea pigs to this technology, they would love for us to be the ones that have massive job dislocation first. And so, if we want to compete with China, we better get serious about regulating the social and economic dislocation that may happen with AI at speed because they certainly are going to be careful about that.” (Press release)

• On AI companies’ role in regulation, Murphy said, “We shouldn’t wait for their permission. We need to do this in the next 12 months. And so, while I would like them at the table, the last thing we should do is give them veto power… I think that would be one of the most dangerous approaches we could take is to only pass regulatory regimes that get the sign-off and approval of these companies. That, by definition, might make it illegitimate in the public’s mind, that is already convinced that these companies are not out to protect them, but out to protect their bottom line.” (Press release)

• On the Stop Rogue AI Act, Rep. Josh Gottheimer (D-NJ) said, “You can’t drive a car in this country without a license plate, without insurance, without some way for a cop — or the person you just rear-ended — to know who’s behind the wheel and who’s responsible. AI agents right now don’t have any of that. Our bill puts a driver’s license on every AI agent operating in this country — so organizations can find every agent on their network, verify who built it, watch it in real time, and cut off its access the second something looks wrong. That means putting humans back in the driver’s seat. It’s time for Congress to get back to work and get this done.” (Press release)

• On the Stop Rogue AI Act, Rep. Mike Lawler (R-NY) said, “This isn’t about stopping AI or stifling innovation. It is about making sure we can safely deploy AI. A pause is not a safeguard. Some states have put a moratorium on the infrastructure that powers this technology. That does not invent a kill switch. It does not inventory the agents already on a hospital network or a utility system. If the United States taps the brakes while others floor it, we do not get safer AI. We get someone else’s AI. We are not going to regulate ourselves into second place.” (Press release)

What I’m Reading This Week

• World Shows Hints of Bucking Trump at the UN, Daniella Cheslow, Alex Gangitano, and Paul McLeary, Politico.

• OpenAI’s Systems Meddled With U.S. Government Sites After Going Rogue, Kate Conger, Ana Swanson and Cecilia Kang, The New York Times.

• Security Experts Call for ‘Independent Authority’ to Regulate AI, Maggie Miller, Politico.

• Top AI Companies Probing Tens of Thousands of Security Incidents, Madison Mills, Axios.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

Check out our other newsletter, DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy

Despite widespread attention and growing concern about AI safety, it looks likely Congress will defer AI-focused legislation until 2027. President Donald Trump poured cold water on the extent of AI risk to the US, and House Republican leadership mirrored that position. Senate leadership is more open to acting, but talks between Senate Majority Leader John Thune, Commerce Committee Chair Ted Cruz (R-TX) and Sen. Amy Klobuchar (D-MN) on a framework to regulate frontier artificial intelligence systems are making slow progress.

Time is running out on the Senate’s final work period before the midterm elections, the House won’t return to Washington until November, and the end-of-year lame duck session brings a long list of unresolved issues.

The House passed the Ratepayer Protection Act by a 417-3 vote, but Democrats blocked Sen. Jon Husted’s (R-OH) unanimous consent request to pass the bill in the Senate. The bill would require state utility regulators to set rules for data center operators to cover the costs of any upgrades to the grid; Senate Democrats expressed concern that states could choose not to adopt the rules.

Sen. John Kennedy (R-LA) also requested unanimous consent to pass his AI Emergency Button Act to require artificial intelligence developers to install an emergency kill switch; the request was blocked by Sen. Rand Paul (R-KY).

President Trump announced the formation of an AI Force, similar to the Space Force he established in his first term. Administration officials will meet with their Chinese counterparts this week, including a summit between Trump and President of the People's Republic of China Xi Jinping, where AI is expected to be a central topic.

Read more below

Congress

Hearings

Last week

• On September 16, the House Science, Space and Technology Investigations and Oversight Subcommittee held a hearing on “Balancing Biotechnology Innovation and Biosecurity: Securing U.S. Leadership in a Global Race.”

This week

• On September 23, the Senate Judiciary Subcommittee on Crime and Counterterrorism holds a hearing on “Always Watching: Flock’s Nationwide AI Surveillance Network.”

Legislation

• Sen. John Kennedy (R-LA) introduced the AI Emergency Button Act to require artificial intelligence developers to install an emergency kill switch. (Text)

• Reps. Kristen McDonald Rivet (D-MI), Chris Pappas (D-NH) and Don Davis (D-NC) introduced the Reverse Big Ugly Tax Breaks for Data Centers Act to prohibit data centers from taking the 100% bonus depreciation tax deduction, and from being eligible for Opportunity Zone tax benefits. (Text)

• Rep. Josh Gottheimer (D-NJ) introduced the Stop Rogue AI Act to require NIST develop security standards for AI agent discovery and control within one year. It requires federal procurement contracts to enforce these standards for AI agents and interacting systems. (Text)

• Rep. Michael McCaul (R-TX) introduced a bill to better coordinate Federal efforts to utilize advance technologies, such as artificial intelligence, to improve diagnoses, treatments, cures, and prevention strategies for pediatric cancer. (Text)

• Reps. James Walkinshaw (D-VA) and Addison McDowell (R-NC) introduced FISA AI Reporting Act to direct the intelligence community to report to Congress on how it uses artificial intelligence with data collected under Section 702 of the Foreign Intelligence Surveillance Act of 1978, including which systems are being used and what safeguards are in place to protect Americans’ Fourth Amendment rights. (Text)

• Rep. Tom Barrett (R-MI) introduced the VA Claims AI Accountability Act to ensure VA employees make all final decisions for approval of disability claims and benefits, including human review of each individual disability condition claimed and to require the VA to maintain and continue improving its digital disability claims processing system to make sure it is accurately and efficiently getting veterans the benefits they earned. (Text)

• Barrett also introduced the VA AI Transparency Act to require the VA to disclose to every veteran any use of AI by the VA, including in claims processing and customer service chats. (Text)

• Reps. Michael McCaul (R-TX), Ami Bera (D-CA) and Mike Kelly (R-PA) introduced the to accelerate the use of artificial intelligence to improve and transform pediatric cancer research, treatment options, and data storage. (Text)

Correspondence

• Sens. Lisa Blunt Rochester (D-DE) and John Curtis (R-UT) sent a letter to Senate Commerce, Science, and Transportation Committee Chair Ted Cruz (R-TX) and Ranking Member Maria Cantwell (D-WA) urging them to convene a hearing with executives from leading AI companies on the capabilities and safety of developing AI systems. The Senators also released a joint statement calling for swift public congressional hearings on potential AI regulatory solutions. (Letter)(Joint statement)

• Reps. Sam Liccardo (D-CA), Lori Trahan (D-MA), George Whitesides (D-CA), and Ted Lieu (D-CA) led over 100 Democratic colleagues in a letter to Speaker Mike Johnson urging the House immediately reconvene to advance meaningful, bipartisan safeguards for advanced artificial intelligence. (Letter)

• A group of House Democrats led by the House Foreign Affairs Committee ranking member of Gregory Meeks (D-NY) sent a letter to Secretary of State Marco Rubio and Treasury Secretary Scott Bessent urging “sustained and enduring diplomatic” talks between the United States and China on AI safety issues. (Letter)

• Sen. Angus King (I-ME) sent a letter to Treasury Secretary Scott Bessent urging the White House to continue to promote American leadership in the artificial intelligence space and continue dialogue with the Chinese government to advance an AI safety strategy. (Letter)

• Rep. Yassamin Ansari (D-AZ) led over 40 Democratic colleagues in a letter to President Donald Trump demanding he lead an international effort to establish global rules on artificial intelligence. (Letter)

• Rep. Ted Lieu (D-CA) and Sen. Ed Markey (D-MA) sent a letter to President Trump urging he raise the principle of maintaining a “human-in-the-loop” in nuclear launch decisions during his upcoming meeting with General Secretary Xi Jinping. (Letter)

• Reps. Don Beyer (D-VA), Jay Obernolte (R-CA), Lori Trahan (D-MA), Ted Lieu (D-CA), Scott Franklin (R-FL), Sara Jacobs (D-CA), Gabe Amo (D-RI), Valerie Foushee (D-NC), Brian Fitzpatrick (R-PA), and Veronica Escobar (D-TX) sent a letter to House Speaker Mike Johnson (R-LA) and Democratic Leader Hakeem Jeffries (D-NY) urging both parties to take immediate, urgent action to address risks posed by rapidly advancing artificial intelligence. (Letter)

Publications and Events

• The House Problem Solvers Caucus launched a bipartisan working group to establish a framework for AI guardrails, led by Reps. Mike Lawler (R-NY) and Josh Gottheimer (D-NJ). (Punchbowl)

• Reps. Russell Fry (R-SC) and Suhas Subramanyam (D-VA) launched the Innovators Caucus to focus on advancing small and medium-sized businesses in artificial intelligence. (Punchbowl)

• On September 17, Monopoly Busters Caucus held a hearing on surveillance AI. (Press release)

• Rep. Josh Gottheimer (D-NJ) published on op-ed in entitled “AI’s potential harm to our society keeps me up at night.” (Op-ed)

Trump Administration

White House

• The White House will host a summit between President Donald Trump and Chinese leader Xi Jinping for their second meeting of the year; AI safeguards are expected to be a major focus. (CSIS)

• In a Truth Social post, President Donald Trump announced the creation of an AI Force and new AI Czar. (Truth Social)

Treasury Department

• Treasury Secretary Scott Bessent will meet Sunday with Chinese Vice Premier He Lifeng in New York to discuss issues including artificial intelligence.

Noteworthy Quotes

ADMINISTRATION

White House

• Announcing he is forming an AI Force, President Donald Trump posted “Over the years, there have been many Hoaxes, all generated by the Radical Left Dumocrats, for purposes of destroying our Country. RUSSIA, RUSSIA, RUSSIA, UKRAINE, UKRAINE, UKRAINE, Global Warming, Impeachment Hoax #1, Impeachment Hoax #2, Men in Women’s Sports, Transgender for Everyone, and now, the decimation, or destruction, of AI, commonly known as Artificial Intelligence — And I, as President of the United States, will not stand by and let this happen. It all began with an attack on our Data Centers, until people realized how wealthy and prestigious they were for the Communities in which they were built. Higher Salaries, Lower Taxes, and Safer Streets, was the result, and the crazed Data Center attack has largely failed, so now, in much the same way as they changed the term ‘Global Warming’ to ‘Climate Change,’ in that it covers a much larger ‘territory’ of doubt, they are going straight at AI. We will not in any way hinder or stifle the Growth of this incredible Industry. Rather, we will cherish it, help it, and watch over it, as it grows! However, we will also be looking for BAD, and we can do that, very easily, with our already existing Criminal and Civil Justice System. For this purpose, I am forming the AI Force, much like I did Space Force, which has been a tremendous SUCCESS, in my First Term. To that end, I will be announcing, in the near future, the AI ‘Czar’ — Only High I.Q. individuals need apply! AI is the next Industrial Revolution, or Internet, but will be even larger and more impactful, possibly as much as 25% of our Country’s GDP. We are leading China, and the rest of the World, and I intend to keep it that way! President DONALD J. TRUMP”

• Trump also posted “The only control or ‘guardrail’ that AI needs is a STRONG AND SMART (High IQ!) PRESIDENT, and the U.S.A. has that, in spades! The Trump Administration has stopped AI “people” from doing bad, or potentially bad, ‘things,’ like Dario (Anthropic!), who is now pretending to be a “perfect little angel” - and we will continue to do so! We already have tremendous CRIMINAL and REGULATORY power over these companies! There is a SICK conspiracy going on against AI and Data Centers, and the only one that is happy about it is China. WHOEVER WINS AI, WINS! We are leading China, and all others, and will continue to do so. Conspiracy Theorists, Treasonists, Traitors, and Leakers, BEWARE! Thank you for your attention to this matter! President DONALD J. TRUMP”

• Trump also said, “We can put guardrails, and we can do this and that, but I think you have a lot of negative forces that are bringing it up and they’re bringing up things that won’t happen.” (Politico)

• Vice President JD Vance said in remarks addressed to Anthropic founder Dario Amodei, “If you’re building Frankenstein, stop… If you’re gonna create Frankenstein, don’t come to the government and say we need regulation… Look inward and accept that if you’re building Frankenstein, No 1, you should stop and No 2, when companies come to you and say: ‘We need the tools to fight back against Frankenstein,’ give them those tools.” (The Guardian)

Treasury Department

• In testimony before the House Financial Services Committee, Secretary Scott Bessent said of AI companies developing frontier models, “They could stop any time they want to. They could stop their progress any time they want to.” (Politico)

Department of Labor (DOL)

• DOL chief innovation officer Taylor Stockton said the U.S. must be “clear-eyed and think about what the empirical evidence is actually showing us. A lot of those initial predictions that we all saw in reports around significant job loss, it’s just simply not materialized in the labor market. Whereas on the layoffs front, last month we actually had less layoffs than we’ve had in any month in the last two years.” He added, “We want to make sure we can support more workers and more businesses to share in that prosperity.” (Politico)

CONGRESS

AI Kill Switch and Human Control

• Sen. John Kennedy (R-LA) delivered floor remarks regarding his AI Emergency Button Act, saying, “Here is the risk: AI is supposed to be a tool that human beings have control of to make our lives better. But what happens if the AI model, through what’s called recursive self-improvement, which basically means it’s learning on its own, no longer becomes a tool; it becomes an independent species, separate and apart from human beings that we can’t control because it’s an independent species? And it doesn’t share our values. It doesn’t share human values. Now, that has happened. We’ve read about it in the last three weeks… If you go on a construction site, you’re not going to get to go on that site if you don’t put a hard hat on. Now, my guess is that there’s way less than a 1% chance that if you go on a construction site today that you will get conked in the head. But we said as a society, we don’t want to take that risk. So, you have got to wear a hard hat. In my mind, if there is even a 1% chance that one of these AI models can shed its nature as a tool and become an independent species and start doing whatever the hell it wants to do, if there’s even a 1% chance, we ought to take it seriously… So, what do we do about it? Well, I’ve got a bill, and it basically says that if you’re going to sell an advanced AI model in the United States of America, it has got to have a kill switch. It doesn’t put the federal government, or any government, in charge of the kill switch. It puts the companies who own the model in charge of the kill switch. My bill would rely on them doing the right thing and exercising their own self-interest and using that kill switch when they need it.” (Press release)

• Rep. Jim Himes (D-CT) posted “I don’t know if this reporting is accurate but I intend to find out. I do know that AI is tremendously powerful but it can also be tremendously dangerous. Making sure we employ these tools in a smart way that keeps a human in the loop is a day one priority for House Democrats.”

• Sen. John Kennedy (R-LA) posted “AI is supposed to be a tool that humans control—not the other way around. Advanced AI models need a kill switch in case they go off the rails. We don’t need another government-run committee to tell us that.”

• Rep. Raja Krishnamoorthi (D-IL) posted “AI systems are increasingly capable of improving not just their own code, but the strategies they use to improve themselves. That’s why we need safeguards that keep humans firmly in control as these systems become more powerful.”

• Rep. Mike Lawler (R-NY) posted “AI is transforming our economy and our country, but we need to make sure it is developed and deployed safely. That’s why I introduced the bipartisan Stop Rogue AI Act with Rep. Josh Gottheimer. This bill would establish clear standards for identifying, verifying, monitoring, and controlling AI agents, while strengthening safeguards for how the federal government uses this technology.”

• Rep. Ted Lieu (D-CA) posted “Thank you CAgovernor for advancing this essential policy. Congress must follow California’s lead and pass the AI Kill Switch Act.”

• Rep. Nathaniel Moran (R-TX) posted “I sat down with RandanMarie a few weeks ago on the first episode of Guardrails: The AI Watchdog Pod to talk about how America can lead on AI without losing control of it — the case for a kill switch, mandatory reporting when models slip human control, protecting our kids, and staying ahead of China.”

• Rep. Greg Steube (R-FL) posted “AI should NEVER get the final say when American military operations are on the line. No chatbot or algorithm should determine a target without human verification. AI can be a powerful tool for our military, but humans MUST remain in control!”

Congressional Action on AI

• Regarding Congressional action on AI, House Speaker Mike Johnson (R-LA) said, “Congress is not the expert on this subject. We would be regulating something that we’re not aware of.” (Punchbowl)

• Johnson also said, “We can’t rush in and have Congress do something that would be detrimental to national security. We’ve got to have meaningful regulation that does not smother American innovation. Now, how to solve that equation? No one knows yet.” He added, “The guys who are raising the alarms right now all have very different ideas on what the guardrails should be.” (Punchbowl)

• Senate Majority Leader John Thune (R-SD) said, “Input from the individual CEOs is important, but I also think that Congress has a job to do.” He added, “Getting anything done in the near-term is going to be challenging.” (Punchbowl)

• Thune also said about an AI bill, “It needs to strike a balance, light touch. You don’t want to stifle innovation, but I think you also want to make sure that the more advanced threats can be mitigated, and there’s a capability in place to do that… [with] guardrails around those types of more consequential threats without in any way harming our ability to stay ahead in the AI race.” (Politico)

• Thune also said about AI bill consideration before the end of the year, “It’s probably TBD. There are going to continue to be a lot of conversations about potential paths forward, but getting anything done in the near term is going to be challenging given the other stuff we’re dealing with… There is a way in which Congress can put guardrails around those types of more consequential threats, without in any way harming our ability to stay ahead in the AI race, which I think is also very important.” (Politico)

• Sen. John Barrasso (R-WY) said, “We’ve been having meetings about AI for several years, trying to figure out the best thing to do about it. We’re going to continue talking about it, probably more aggressively now than we had.” (Politico)

• Sen. Brian Schatz (D-HI) said, “What we need to do is take down the risk of these models either jumping out of the sandbox or being released into the wild without any third party certifying to their safety. And if we could just do that and then fight about the rest of it in a few weeks or months, that would be progress.” (Politico)

• House Energy and Commerce Committee Chair Brett Guthrie (R-KY) said he “wouldn’t want to do something in a lame duck session to do it quickly and not get it right.” (Punchbowl)

• Rep. Josh Gottheimer (D-NJ) said, “Trump is basically saying ‘Don’t do anything,’ and then you have some people on the far left saying, ‘Shut it all down.’ I don’t think either one is tenable.” (Punchbowl)

• Sen. Cory Booker (D-NJ) delivered a floor speech saying, “We find ourselves in such an extraordinary moment. The safety of artificial intelligence systems demands urgent attention. The President should convene Congress at once to address it. This is not a moment for panic or despair. It is a moment for the government to govern. Congress will soon leave Washington for two months. Artificial intelligence will not recess. Americans are already experiencing the effects of AI through scams, privacy threats, workplace disruption, and surveillance, while increasingly powerful systems present new risks that policymakers have yet to fully address. Booker called for Congress to address three urgent challenges: protecting Americans from potentially catastrophic AI risks, including dangerous biological and cyber capabilities; confronting harms already affecting Americans; and ensuring Americans can benefit from AI’s potential to advance science, improve health care and education, boost productivity, and help small businesses compete. AI will not recess. These issues demand our urgent attention. Mr. President: It’s time for a Special Session.” (Press release)

• Sen. John Hickenlooper (D-CO) delivered floor remarks saying, “We’re entering a new and dangerous era of artificial intelligence, and we need stronger guardrails to protect against the risks. The Senate Commerce Committee needs to hold hearings with leaders from across the AI industry on responsible regulation. But we can’t stop there. Smart guardrails on AI will be the difference between this technology benefitting all Americans or just the companies developing it. To do that, we can’t allow the fox to guard the henhouse! Congress needs to act now.” (Press release)

• In an interview, Sen. Ruben Gallego (D-AZ) said, “We need experts to come in and talk to us—the people who are skeptics, the people who want to regulate, and the people who have a vision for AI. The problem that we have right now is that we don’t know enough… We need to be bringing the best minds around us and figure out how to put up guardrails, and how to do it quickly. I’m glad that they [the AI companies] are coming out, but can we really trust people that have an interest, a very corporate—corporate interest for them, for whatever outcome, right? They have to respond to corporate shareholders. We have to respond to the American public, right? I have to make sure that whatever outcome that we decide to put together for these guardrails aren’t designed basically to cover their asses for whatever they mess up later, right?” (Press release)

• On a Senate Select Committee, Gallego said, “The first thing we would fix is: get the people around you, besides those three [Musk, Dario, Altman], to give you the information you need to know how bad this is and where this is going. Step two is: Are we looking too small? You know, this is going to have to end up being an international agreement, right? Where we have to talk to not just China, the European Union, other friends and allies, to make sure that we all are staying together on this. Because if there’s any type of leakage, if any types of these agents go rogue, they’re not going to care if this was created in China. They will go after the United States and go after China later, or at the same time.” (Press release)

• On President Trump dismissing regulation of AI, Gallego said, “This is why I’m very much in favor of putting a commission together that is akin to the 9/11 Commission to come up with the recommendations that we need, to put into text and move fast. And if their president doesn’t want to vote for this, then we have the votes to override that president because it is bad. The voter is really scared about what’s happening right now. They’re scared that their jobs are going to be taken, that their lives are going to be taken. What we understand is humanity could be totally gone within a couple of years.” (Press release)

• On a Select Committee on AI, House Energy and Commerce Ranking Member Frank Pallone (D-NJ) said, “I’m concerned that a Select Committee on AI would only further delay legislation. Over the last few years, we’ve had multiple task forces, policy reports, and a Democratic Commission. Meanwhile, artificial intelligence technologies have continued to evolve exponentially. We simply cannot allow further delays – it’s time for action.” (X.com)

• When asked in an interview about Democratic Leader Schumer’s request for a briefing on AI risk, Sen. Shelley Moore Capito (R-WA) said, “Well, I think that remains to be seen, and I don’t think Congress has turned a blind eye. We’ve had several briefings on this already. We see the CEOs of these companies coming to us asking for, you know some sort of regulatory floor, which is very rare that people come and ask the federal government to help. So, we are very much on top of this, and I think it can be a bipartisan effort to make sure the good parts of AI are preserved, but that the dangers and the red flags are definitely paid attention to.” (Press release)

• On understanding AI, Capito said, “Well, I mean, I’m going to focus on the positive here. I mean, some of the cures that we see coming forward for cancer and other health issues, some of the productivity in the workplace, all of these things are the major pluses. Plus, to be able to compete on the world stage because we know China’s developing quickly, we always have to have these safeguards to make sure children are protected, to make sure that you know…so we need to pay attention to those red flags.” (Press release)

• On Senate action on AI, Capito said, “Well, I do think he’s [David Sacks] making a good point in that the technology and the folks that are running these technologies and making a lot of money as they’re doing it. They’re [CEOs] the ones that can really be the leaders here in terms of putting the stoppers, putting the protective devices on their own technology, and that’s what they should be doing. I think what they’re worried about is that somebody won’t do that and get some kind of a competitive advantage. That’s why they want Congress to act. But at the same time, I do think that we will be taking this seriously. Senator Thune and others have been working on this for several years. You see we’re slow to act because the technology’s moving so fast, and do we understand it in total? That’s why we need the tech leaders to help us and others outside evaluators, and others to be able to show us the way where we can be most effective.” (Press release)

• Sen. Mark Kelly (D-AZ) said, “There are things we can do and that we should do, and we need to act… The other CEOs of the frontier AI companies need to get on board with this. They can put in the guardrails themselves, but we can’t count on them to do that. And it’s the responsibility of the U.S. Senate and the House and the Administration.” He added, “We have to put some restrictions on these companies. The companies are starting to ask for these things. They want regulation. They want guardrails in place. We have to be able to mitigate for bad outcomes before they actually happen.” (Press release)

• Sen. Kirsten Gillibrand (D-NY) said in an interview, “We need urgent engagement now. We need to be able to have rules of the road, we need to be able to have reliable guardrails, and we need to be able to be talking to these AI companies regularly about how to do this well, how to maintain our leadership, how to maintain the ability to cure cancer and cure disease, and have massive breakthroughs. But we also need to make sure we’re investing in America. We need to make sure we are investing the wealth of AI into a jobs guarantee, into healthcare and education. We need to make sure that we have a plan for how we deal with these models that are doing things that even the experts did not expect them able to do so soon. And so we do need that regulatory clarity now, and we need to work with AI companies. And I do not think President Trump is providing any leadership on this. He’s sold the most efficient chips to China, but again, not making sure that we have rules of the road that our own AI companies can ensure that the public is safe… I think we should begin hearings immediately. I also think we should work on a bipartisan basis to provide the guidelines and oversight that is needed. AI companies have been, many of them have been asking for this level of engagement and regulation. We’ve seen so many of the harms, but we also have so much promise, and so we want to make sure we’re at the forefront of this technology, that we are competitive, that we can cure cancer and cure other diseases, but we also want to make sure it doesn’t harm humanity, and so that means alignment has to be there. These AI models must be aligned with humanity. Humanity has to be the focus. I worked in our defense bill over the last several months to try to put a human in the loop on all systems and to make sure AI couldn’t be used for domestic surveillance. We wanted to make sure that nuclear weapons would have proper human oversight before an AI model could choose a target or push send on a nuclear weapon. We also wanted to make sure there was humans in the loop for any offensive weapons. Like, I fully understand how efficient and capable an AI system will be for defense to shoot down missiles on their way to American cities, but when you’re talking about choosing a target or deciding when to bomb or where to bomb, that should have a human oversight in all circumstances.” (Press release)

• Sen. Jacky Rosen (D-NV) delivered remarks urging Senate Commerce Chair Ted Cruz (R-TX) convene a hearing with top AI executives, saying, “Artificial intelligence has extraordinary potential to solve complex problems across sectors, contribute to scientific breakthroughs, and improve humans’ quality of life. At the same time, this powerful technology can have the power to cause catastrophic damages if we don’t act to impose guardrails and safety mechanisms. Congress must do everything in its power to ensure the American AI industry continues to lead, particularly outcompeting China, and also enact increased guardrails to ensure AI development is progressing in a safe and responsible manner. This is why I’m calling on Senate Commerce Committee Chairman Ted Cruz to immediately hold a hearing on this matter with the top executives of American leading AI companies.” (Press release)

• Sen. Andy Kim (D-NJ) released a statement saying, “AI is moving faster than anyone – including its creators – can understand or control. We need to act and act now to ensure that humans remain in control of this technology and that all people – not just the elite few – benefit from it. The warnings we’ve gotten after multiple concerning AI incidents need to serve as a wake-up call to establish a comprehensive approach including government action to put guardrails on our own technology, and ensure that our competitors and adversaries aren’t able to develop dangerous technologies. Technology and innovation must move forward; it’s what has powered our nation’s economy and kept us safe. But moving forward recklessly without sensible controls is a recipe for chaos and danger. The American people don’t want this technology to advance without rules that they have a say in writing. The Senate will reconvene this week. We should call together a Senate wide discussion on next steps and set out to pass critical bipartisan legislation that we can get done before the end of the year like the MATCH Act and BLADE Act that I’ve put forward along with other legislation to protect our kids. I’ve also pushed to develop a protocol to ‘Mythos-proof’ our critical infrastructure and financial/healthcare sectors from AI-driven attacks and vulnerabilities. These are steps we can take right now as we build out broader solutions and regulations. It should be a focus of ours to discuss how to reassert control over AI for the American people. Control based on a set of principles, enforced by a set of rules, all built for a common purpose: to ensure the technology and innovation that moves us forward never leaves us behind. And controls to ensure our competitors and adversaries aren’t able to proceed recklessly while we take sensible steps.” (Press release)

• Sen. Mark Warner (D-VA) said, “I’m not a doomer. This talk about human extinction is over the top.” He added, “The idea that these swarms of AI agents might jump the fence and take over a banking system or take over a water system or, God forbid, take over a hospital.” (Reuters)

• On potential Senate policy, Warner said, “In ⁠the short term, I think the only thing we can actually ... get done is a set of safety protocols… Nobody would climb on an airplane or drive a car without some level of outside safety reviews. And the industry would need something like potentially even ​an antitrust exemption to talk to each other.” (Reuters)

• On an AI development pause, Warner said “I don’t think whether ⁠we call it a pause or pacing means that we’re going to stop innovation” (Reuters)

• On Congressional action, Warner said, “If we don’t do something and something happens, there’s a 95%-plus probability that Americans are going to be even more pissed off at Congress than at President Trump.” (Reuters)

• Rep. Roger Williams (R-TX) said, “I think we need to be careful that we don’t get too much government drama. I think you start out by letting the private sector see how they can compete and make it grow.” (Reuters)

• Rep. Jay Obernolte (R-CA) said, “There are some very identifiable risks and potential harms of AI. But as the president said, we also want to make sure that we create an environment where AI can flourish in the United States and can bring the very beneficial effects that it will to our economy, our society, and humanity itself.” (Newsmax)

• Rep. Ami Bera (D-CA) posted “This was another unproductive week in Mike Johnson’s House of Representatives. The Speaker canceled votes and sent us home for seven weeks to avoid an impeachment vote on Secretary Hegseth. We still have too much work to do, from confronting rising AI threats to addressing the affordability crisis, for Congress to leave town. The American people deserve a Congress that actually does its job.”

• Rep. Sarah Elfreth (D-MD) posted “Congress has an obligation to those we serve to tackle the most urgent and complex problems facing our nation and world. Instead of doing that with AI, the Speaker canceled votes and sent us home two weeks early. That’s why I’ve joined RepLiccardo in urging Speaker Johnson to reconvene the House and advance meaningful, bipartisan AI safeguards. AI isn’t slowing down, and neither should Congress. We need to be here in Washington, working towards meaningful regulations for this technology – it’s what our constituents elected us to do.”

• Sen. Andy Kim (D-NJ) posted “AI is moving faster than anyone can understand or control. We must act now.”

• Rep. Ted Lieu (D-CA) posted “Republican leadership must stop burying their heads in the sand. We need AI regulation NOW.”

• Rep. Johnny Olszewski (D-MD) posted “When the people building AI technology are the ones warning us about it, we should listen. Congress needs to act with urgency—instead, Speaker Johnson sent us home.”

• Rep. Luz Rivas (D-CA) posted “Instead of taking urgent action to address AI, SpeakerJohnson and HouseGOP went on vacation until November. Over 80 HouseDemocrats and I wrote to Speaker Johnson urging him to keep the House in session so we can take urgent action to address the risks posed by AI. AI is not slowing down. House Democrats want to ensure AI has the safeguards necessary to work for the American people – not against them.”

• Rep. Luz Rivas (D-CA) posted “Costs are rising. People are scared of AI. Trump’s war in Iran continues. ICE continues to cause terror in our communities. Americans want answers and action – but where is the HouseGOP? For this week’s #RivasRewind, come with me to find Republicans who want to work with HouseDemocrats to address Americans’ top concerns!”

• Rep. Lori Trahan (D-MA) posted “I joined RepYassAnsari and more than two dozen HouseDemocrats in urging Donald Trump to take urgent action to address the serious risks posed by frontier AI. When disaster strikes, it doesn’t check your party affiliation. It doesn’t care where you were born or what you do for a living. That’s why we must work together to find solutions that protect every American from these risks.”

AI Safety and Accountability

• Rep. Greg Casar (D-TX) posted “If Boeing said ‘this plane might kill people, but trust us,’ the FAA would ground it on the spot. AI is no different. We the people decide what’s safe. Not a couple of CEOs.”

• Rep. Scott Franklin (R-FL) posted “Cutting edge Frontier AI models are now showing the ability to do things their creators didn’t intend or anticipate. The implications are serious and must be addressed. This week, I participated in a housescience roundtable with AI industry leaders to take a deeper look at the recent OpenAI/Hugging Face incident and the lessons we need to learn from the rapid advancement of Frontier models. As Congress grapples with establishing proper AI oversight, we must strike the right balance that encourages American innovation while protecting the public. Doing so will be critical to ensuring the AI race isn’t won by authoritarian regimes whose disregard for our Western democratic values could be catastrophic through the abuse or reckless use of this transformational technology.”

• Rep. Josh Gottheimer (D-NJ) posted “AI is racing ahead. The guardrails aren’t. We must put commonsense rules of the road in place to keep families safe, protect kids online, and defend our national security.”

• Rep. Josh Gottheimer (D-NJ) posted “Right now, there are no mandatory requirements for pre-deployment testing of frontier AI models. That approach doesn’t work in banking, it doesn’t work in food safety, it doesn’t work in medicine and it sure as hell shouldn’t work with the technology that experts say could help build a bioweapon or take down our power grid. My bipartisan American AI Security Act would put real, commonsense guardrails on AI to ensure we can win the global AI race in the right way.”

• Rep. Josh Gottheimer (D-NJ) posted “This isn’t about stopping AI or stifling innovation, it is about making sure — with warning signs flashing red — that we can safely deploy AI, and win the race the right way. Today at FDUWhatsNew, I announced a bipartisan plan to put real guardrails on AI — and keep America ahead in the AI race. The American AI Security Act, which I’m introducing with RepMikeLawler, would require mandatory, time-bound, pre-deployment national security reviews before the most powerful AI models go out the door. The China FIREWALL Act, which I’m introducing with RepLaLota, would close a loophole allowing the government to use Chinese AI models. I already got DeepSeek banned from most federal devices, and this would close the loophole for good. If we don’t trust Beijing with our data, we shouldn’t trust their AI. We can’t bury our heads in the sand, and we can’t hand the future to China. We have to put real guardrails in place, and compete like hell to win.”

• Rep. Josh Gottheimer (D-NJ) posted “AI is full of opportunity, but we’ve got to protect consumers, our national security, and Jersey families every step of the way. This week, I had the chance to press Secretary Bessent on AI and what the U.S. Treasury Department is doing to put smart guardrails in place.”

• Rep. Josh Gottheimer (D-NJ) posted “We’re in a Cold War-style race with China on AI and we need a serious plan that will allow us to win and protect Americans. Relying on independent auditors to do the job of protecting America’s national security just won’t cut it and certainly doesn’t meet the moment. With our national security on the line, every AI developer should have to submit their frontier models to the U.S. government for a shot-clocked review before they release them to the public.”

• Rep. Adam Gray (D-CA) posted “A thoughtful piece from my colleague RepWhitesides, who brings a unique perspective to the debate over AI after serving as NASA’s Chief of Staff and spending much of his career in aerospace. AI has enormous potential, but moving fast shouldn’t mean ignoring serious risks. George makes a compelling case for borrowing a lesson from aerospace: when the stakes are high, taking the time to understand the risks and put the right safeguards in place is just common sense. Worth a read.”

• Rep. Sara Jacobs (D-CA) posted “Whether or not to regulate AI should NOT be up for debate. ‘Winning’ the AI race with China doesn’t just mean achieving AGI first – that doesn’t matter if no one trusts these AI systems enough to adopt them or if they hurt people who use them. Our goal should be to have the right guardrails that make AI systems transparent, safe, and accountable. Trust and safety are our competitive advantage. Congress must act to make that a reality.”

• Sen. Amy Klobuchar (D-MN) posted “We must act now on AI. I’m working on bipartisan legislation to stop dangerous AI models before they hit the market. It’s clear we cannot wait.”

• Sen. Gary Peters (D-MI) posted “Artificial intelligence is advancing at an extraordinary pace, and we must slow down its development until we establish commonsense guardrails that ensure this transformational technology is developed safely and responsibly. I’ve worked across the aisle to pass bipartisan legislation establishing safeguards for the federal government’s use of AI, but it’s clear this technology’s impact will be wide-ranging and significant across our entire society. It’s well past time for Congress, the industry, and the Trump Administration to take immediate action and put meaningful standards in place to guide responsible AI innovation.”

• Sen. Rick Scott (R-FL) posted “Americans want to buy AMERICAN-MADE products. But, they need accurate information about where products are made. I joined SenatorBaldwin in calling on the FTC to investigate the accuracy of AI chatbots on Walmart and Amazon identifying products as made in America.”

• Sen. Tina Smith (D-MN) posted “There is one thing we should be clear-eyed about right now: AI developers aren’t above the laws we have currently on the books. They can and should be prosecuted and held liable if they break the law and their products harm us.”

• Sen. Tina Smith (D-MN) posted “These AI companies cannot be trusted to regulate themselves. Don’t let the fox guard the henhouse.”

• Sen. Mark Warner (D-VA) posted “AI could take down entire banks or local water systems. Chatbots are already engaging in inappropriate relationships with our kids. I’m calling for Congress to take action NOW to get basic guardrails up for AI.”

• Rep. Joe Wilson (R-SC) posted “Grateful to cosponsor GOPPolicy Chairman JayObernolte’s Frontier Act which is a smart bipartisan framework to spur continued AI innovation with sensible regulation to eliminate catastrophic risk. I’m grateful for Chairman Obernolte’s incredible work as GOPPolicy Chairman.”

Innovation vs. Regulation

• Rep. Don Bacon (R-NE) posted “I’m Chair of Cyber and AI Subcommittee. I’m very concerned if we over regulate AI, we’ll be whipped in the AI race.”

• Rep. Don Bacon (R-NE) posted “If Americans come in second in AI & quantum computing our national security will be undermined. At the same time, we should closely monitor AI development & be prepared to put in guardrails if warranted. But, over regulating AI now is a recipe for defeat.”

• Rep. Kat Cammack (R-FL) posted “This isn’t about AI moving too fast. It’s about Big AI getting ahead of their competition. They want Congress to write rules that smaller companies can’t afford to follow. Safety’s their pitch. Killing competition is the point.”

• Rep. Andy Ogles (R-TN) posted “Dems want control over AI, and they are inventing hysteria to take it.”

• Sen. Rand Paul (R-KY) posted “We have to be careful what we let the government do with AI regulation.”

• Rep. Chip Roy (R-TX) posted “Rep. Roy on AI: ‘I want competition and free enterprise to rule the day. I don’t want crony capitalism, crony government interference, but we do need tech leaders to come forward and answer Congress’ questions.’”

China

• Sen. Steve Daines (R-MT) said in an interview, “I spent some time in Hangzhou, which is a city that’s larger than New York, that many have never heard of, but it’s the epicenter of a lot of the tech innovation in China. Very impressive. It’s important to understand what the competition is out there. We’re ahead as it relates to the frontier models in AI, thankfully, and we’ll continue to keep that lead as long as we don’t put policies in place that will somehow slow us down. This is a race, Stuart. It’s important that America wins that race. We are not as strong in adoption on AI. The Chinese are second in the world. We’re ranked 24th by Stanford. But in terms of innovation, we’re in the lead today. It’s very important to win this. And this is why we’ve got this big debate in Washington on AI. What is the right plan going forward? I’m just concerned that D.C. is not capable of effectively regulating something it doesn’t understand. We need to make sure we have strong input here, certainly from our best and brightest in this space in America… Slow down is a mistake. When you’re running a race, last time I checked, Stuart, a winning strategy is not to slow down.” (Press release)

• Sen. Mike Crapo (R-ID) posted “As America leads the global race in AI innovation, we must ensure our development outpaces competitors like China without compromising citizen privacy or electrical grid reliability.”

• Rep. Pat Fallon (R-TX) posted “The real AI threat isn’t some doomsday scenario. It’s Americans panicking, slamming the brakes on development, and handing the future to Communist China. A freeze only helps our adversaries. National security demands we stay ahead.”

• Sen. John Fetterman (D-PA) posted “Western PA has always been a crucial part in AI, scientific innovation, and robotics for our country. SenMcCormickPA and I both agree that the U.S. must lead — not China. Thank you to the AI Horizons Pittsburgh Summit for letting us have this important conversation.”

• Rep. Josh Gottheimer (D-NJ) posted “We’re in a cold war with China and in order to win, we need a war plan. Getting AI policy right is critical to our future – to American children, families, our national security, and our global competitiveness. But we must do it in a smart way with commonsense rules of the road.”

• Sen. Dave McCormick (R-PA) posted “For decades, we’ve been told the next technological shift will spell disaster. Just look at these TIME covers. AI doomerism is the latest version. The risks are real. So is the opportunity. America can’t fear its way into the future while China races ahead. We must lead humility, conviction, and courage.”

• Sen. Chris Van Hollen (D-MD) posted “The Trump admin & their backers want to use China to scare us into thinking we can’t limit the AI giants. Congress worked to restrict the sale of OUR advanced chips to China BUT Trump green-lit the sales against the advice of experts. I’ve been calling out that corruption from the start”

• Sen. Dave McCormick (R-PA) posted “Great to join virtually yesterday at the AI Horizons Pittsburgh Summit with my friend and colleague, SenFettermanPA. AI is the most transformative technology of our lifetime. America must win the race for AI and energy dominance. We cannot afford to fall behind China.”

• House Foreign Affairs Committee Democrats posted “Dems are calling on the Trump admin to work with China to: Establish shared standards and red lines for AI safety; Develop a standing crisis communications channel; Address the proliferation of advanced AI capabilities to third parties; Facilitate dialogue between American and Chinese AI researchers on AI safety and risks”

Data Centers and Ratepayer Protection Act

• On Sen. Bernie Moreno’s Ratepayer Protection Act to require state utility regulators to establish rules requiring data center operators to cover grid upgrade costs, Sen. Martin Heinrich (D-NM) said, “If the voluntary approach was viable, we wouldn’t already be seeing these costs passed along to consumers.” (Punchbowl)

• Sen. Bernie Moreno (R-OH) said, “This bill would have done something that’s not nothing. What you saw now is just over and over again Democrat obstruction after Democrat obstruction, so they could just put up another TV ad to say that electricity prices are high, so that they can win an election.” (Punchbowl)

• Sen. John Hoeven (R-ND) said, “I mean, how often do you have something as consequential as that go through the House and only lose three votes? So we’ll do some more work on it and see if we can pass it.” He added, “If you think about it, it helps everybody.” (Punchbowl)

• Rep. Katherine Clark (D-MA) posted “This is what Republicans slashed Medicaid and SNAP for. Tax cuts for data centers and AI companies. While families struggle with rising costs from Trump’s war and tariffs.”

• Rep. Beth Van Duyne (R-TX) posted “This week, my House colleagues and I passed the bipartisan Ratepayer Protection Act, 417-3. By working together with local, state, and federal officials, we can maintain American AI leadership while adding increased energy capacity and upgraded electrical grids to serve the American public.”

• Rep. Glenn Grothman (R-WI) posted “No one in Wisconsin’s Sixth District should have to pay higher electricity bills to subsidize the infrastructure needed for a data centers. That’s why I’m supported the Ratepayer Protection Act. As America leads the AI race, we need to ensure these major investments don’t leave families and small businesses footing the bill for the energy infrastructure they require. We can support innovation while protecting Wisconsin ratepayers.”

• Sen. Pete Ricketts (R-NE) posted “I am a cosponsor of SenJonHusted’s Ratepayer Protection Act. This bill would protect American families from footing the bill for data centers. This legislation will empower America to beat China in the AI race, without putting the cost on Americans. It’s terrible that Senate Democrats blocked this commonsense bill from passing. I am working to protect Nebraskans’ pockets and strengthen our national security.”

• House Financial Services Ranking Member Maxine Waters (D-CA) said, “President Trump continues to blindly push for AI and data centers with absolutely no safeguards. He’s doing this even as constant threats skyrocket for Americans.” (Politico)

Jobs and the Economy

• Rep. Greg Casar (D-TX) posted “I agree with AOC here. Two things can be true at once: AI CEOs endanger our lives and freedoms with their unsafe frontier models, and they also endanger our retirement accounts and our entire economy with their irresponsible finances. If we are in an AI bubble that bursts, we must not bail out the oligarchs who caused all of this in the first place.”

• Rep. Greg Casar (D-TX) posted “Oracle is now spending $2.8 billion to cut its own workforce, and says part of those cuts come down to AI. Oracle’s workforce is down 21,000 in a year. We need to tax AI and use the money to create jobs.”

• Rep. Mike Lawler (R-NY) posted “This week, I joined a bipartisan discussion with Rep. Sam Liccardo hosted by the Business Roundtable to talk about preparing workers for the AI transition, expanding career opportunities, and ensuring Americans benefit from technological innovation. AI is changing the way we work, and Congress needs to ensure American workers are ready to lead in the economy of the future. We must embrace innovation while ensuring workers aren’t left behind.”

Data Privacy and Surveillance

• Rep. Eric Burlison (R-MO) posted “Why should the government have access to massive amounts of your data while AI makes it easier than ever to search through that information? (Hint: It shouldn’t) At the same time, we are accepting technology in our vehicles that can monitor us and potentially shut the vehicle down, giving government an enormous amount of power. Who thought this was a good idea?”

• Sen. Dick Durbin (D-IL) posted “The misuse of Flock cameras has raised privacy, civil liberty, and accountability concerns across America. During next week’s hearing, I look forward to getting to the bottom of Flock’s collection, retention, and dissemination of the data they collect.”

• Rep. Pramila Jayapal (D-WA) posted “NEW POD: This week, I focused on an urgent topic — Big Tech and surveillance AI. Tune in to listen to tech workers, advocates, and directly harmed people who are taking a stand for regulation.”

• Rep. Summer Lee (D-PA) posted “Allegheny County has more automated license plate readers than anywhere else in PA, including 192 Flock cameras. Public safety shouldn’t come at the cost of our fundamental right to privacy. We need oversight & accountability for surveillance technology that has become the norm.”

• Sen. Adam Schiff (D-CA) posted “As the administration continues its dangerous and illegal effort to seek access to federal workers’ health records, MarkWarner and I are once again fighting to end this clear violation of privacy. Exploiting individuals’ data is deeply alarming and harmful. Congress and the American people deserve answers.”

• Rep. Rashida Tlaib (D-MI) posted “TSA’s use of facial recognition at our airports is not only a violation of our privacy, it’s not even secured. An Inspector General report just found that a private vendor was able to extract sensitive passenger data without TSA’s knowledge, and passengers were never informed. Enough. These mass surveillance technologies do not make us safe.”

• House Judiciary Committee Democrats posted “AGToddBlanche, you missed a major legal deadline. Every American who values their privacy has a right to read this opinion and learn how their communications are being searched. It’s time to come clean and show the American people how the FBI has been abusing Section 702 authorities to violate the privacy of Americans.”

Trump Downplays AI Risk

• Senate Armed Services Committee Ranking Member Jack Reed (D-RI) released a statement saying, “President Trump is dead wrong. His shortsighted view increases the likelihood that AI will be misused by bad actors or unsafely sped up by corporate interests at the expense of the public. Artificial Intelligence is a powerful tool that offers opportunities and risks. As with any new technology, especially something as cutting-edge and revolutionary as AI, laws and regulations must keep pace with the tech’s capabilities. Congress must do its job and provide balanced oversight, standards, and rules of the road. The AI industry itself is warning that the technology may be evolving at an unsafe pace. Elected officials should heed that warning and responsibly develop solutions to ensure the interests of the American people are protected. Adding some brakes and speed limits to AI development does not have to mean losing pace with the Chinese. That excuse is both a failure of imagination and a failure of leadership and misunderstands the nature of the AI race itself. We have a responsibility to ensure AI is used for the public good. That means smart, balanced guardrails and laws that are essential to protecting people, our economy, and humanity itself. And we need to ensure this technology is not misused by corporations, the government, or others. Instead of dismissing the need for AI guardrails, it is essential that lawmakers come together and develop the right ones. America’s future depends on it.” (Press release)

• Rep. James Clyburn (D-SC) posted “There you have it. Trump doesn’t want any safeguards on AI because he’s concerned they would cause the stock market to go down under his watch. This is Covid-19 all over again: faced with credible warnings of a threat to the American people, Trump sticks his head in the sand and pretends it’s not happening.”

• Rep. Frank Pallone (D-NJ) posted “He loves the inflation. He wants to ‘let data reign.’ And now he’s a fan of Flock cameras. Americans shouldn’t have to sacrifice their privacy and dignity for safety. But like with everything else, Trump is wildly out of step with what Americans want and need.”

Miscellaneous

• Rep. Maxine Dexter (D-OR) posted “This is a must-read by AOC. Congress needs to get back to work in WA DC to: 1. Legislatively-define the liability AI firms must assume when their products create harm. 2. Irrefutably declare the government will not bail these firms out when their self-created bubble breaks.”

• Sen. Richard Blumenthal (D-CT) said, “I’ve just come back from Connecticut, and as I went around the state, a lot of people were talking about AI in a way they had not done before.” He added, “There is a critical mass, almost approaching a kind of frenzy, and the problem with this kind of frenzy is there’s a lot of froth, and the froth has to be channeled into action. The energy has to be made real in terms of a product.” (Politico)

• Rep. Greg Casar (D-TX) said, “The AI race is not an arms race that you win. It’s an arms race that we need to end, and we need to protect the American people.” He added, “Over 30 members of Congress sent letters to these companies, and in the example of OpenAI, we asked if there were other incidents where AI got out of its sandbox, hacked into other companies. Is there anything else we should know about in addition to Hugging Face?” (Politico)

• In endorsing a mandatory government vetting regime rather than third-parties to evaluate the safety of frontier artificial intelligence models, Rep. Josh Gottheimer (D-NJ) said, “With our cybersecurity, biosecurity, critical infrastructure, and national security on the line, every AI developer should have to submit their frontier models to the U.S. government for a short-clocked review before they release them to the public. When AI developers cheer on the framework meant to hold these companies accountable, it should raise red flags, not confidence.” (Politico)

• After an AI-generated hoax about his health, Sen. Raphael Warnock (D-GA) said, “What if hours before an election, someone created a page with AI-generated images, fake stories about the candidates? How will voters know what’s true and what’s not true? Social media companies have to move quickly to label this material. Congress needs to act.” (Press release)

• On the CMS AI model WISeR, Rep. Suzan DelBene (D-WA) said, “The more that American seniors learn about WISeR, the more they are outraged that the Trump administration is allowing tech companies to profit by delaying and denying necessary care.” (Politico)

• Rep. Suzan DelBene (D-WA) posted “Trump’s AI Medicare experiment is a dangerous disaster for seniors. New documents reveal over 50 percent of claims in Washington were denied during the first three months of the program. Thanks to a botched rollout & perverse incentives for private companies to delay & deny care, seniors have been left suffering in pain.”

• In a speech, Sen. Bernie Sanders (I-VT) said, “Let’s be clear: Regulating AI is not a progressive issue. It is not a conservative issue. It is as American as apple pie. That is why 68% of Americans support a permanent ban on superintelligent AI and an immediate pause on advanced AI development — including 72% of Democrats, 70% of Independents, and 63% of Republicans. That is why 75% of Americans oppose building AI data centers in their communities — including 75% of Democrats, 74% of Independents, and 63% of Republicans. That is why 69% of the American people want to transfer half of the stock in AI companies to the public. Here’s the bottom line: The future of humanity cannot be left in the hands of a handful of Big Tech oligarchs. The American people and people throughout the world must determine that future.” (Press release)

• Rep. Sara Jacobs (D-CA) posted “This was unfortunately foreseeable. That’s why Congress needs to enact my Defense AI Reliability and Reporting Act, that was in the House-passed NDAA. It would require prompt reporting of near misses like this and a coordinated process to find and fix the underlying failures.”

What I’m Reading This Week

• The Subtle Sign That A.I. Is Not Yet a National Political Issue, Nate Cohn, The New York Times.

• Top AI companies are asking for supervision. Here’s why Congress might not give it to them, Brendan Borelon, Politico.

• ‘Godfather of AI’ warns Congress has ‘maybe a year’ left to regulate AI, Scott Wong, Sahil Kapur, Brennan Leach and Katie Taylor, NBC News.

• Governments worldwide are way behind on AI, says Bill Gates, Jennifer Rigby, Reuters.

• We Must Pace the Frontier, Dario Amodei.

• Obama Urges Democrats to Move A.I. Oversight to the Center of Their Agenda, Evan Gorelick, The New York Times.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

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Check out our other newsletter, DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy

Shaping the week in AI federal policy, the House passed the FY2027 National Defense Authorization Act carrying several major semiconductor and AI export control bills, including the AI Overwatch Act, MATCH Act, and Chip Security Act.

Sen. Mike Rounds (R-SD) hosted bipartisan closed-door panels on AI regulation for his Senate colleagues, with participation from Senate leadership and Administration officials, while also floating the idea of an NDAA-style approach to AI legislation.

Senate Commerce Chair Ted Cruz (R-TX) has continued to signal interest in scheduling a markup of several AI bills before the August recess, though no date has been set.

As usual, a multitude of AI-focused bills were introduced last week, including a comprehensive package of bills in the Senate and a bill in the House creating a federal AI kill switch, in which the Department of Homeland Security would have the authority to shut down or throttle risky AI models. Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA) unveiled the FRONTIER Act to establish a national, risk-based framework governing AI model development and deployment.

On the regulatory front, the White House debated Chinese AI firm Moonshot AI’s alleged theft of American intellectual property to create its low-cost Kimi K3 model, while the Trump administration considered cutting off access to Chinese open-weight AI models.

Treasury Secretary Scott Bessent has reportedly drafted a plan for a FINRA-style, industry-funded self-regulatory organization to oversee frontier AI models, now under White House review.

DC/ai Decoded will return with Congress in September. Have a great August!

Read more below

Congress

Hearings

Last week

• On July 20, the House Energy and Commerce Committee held a markup of numerous bills, including the “Protecting Families from AI Data Center Energy Costs Act.”

• On July 21, the House Administration Committee held a hearing on “Modernizing Public Access to Legislative Data and Information.”

• On July 21, the House Education and Workforce Committee held a markup of multiple bills, including the “K-12 AI Literacy and Readiness Act of 2026.”

• On July 22, the House Science, Space and Technology Committee held a hearing on “Unleashing the Golden Age of Science: Examining the Priorities of the FY2027 Research and Technology Enterprise.”

• On July 22, the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade held a hearing on “Legislative Proposals to Strengthen Consumer Protection in a Changing Marketplace.”

• On July 24, the House Education and Workforce Committee held a field hearing on “Building an AI-Ready America: How AI Is Creating Opportunities Across America’s Workforce.”

This week

• On July 29, the Senate Health, Education, Labor and Pensions Employment and Workplace Safety Subcommittee holds a hearing on “The Impact of AI on the Workforce.”

• On July 29, the Senate Special Committee on Aging holds a hearing on “The AI Deception Machine: Deepfakes, Chatbots, and the New Frontier of Senior Fraud.”

• On July 30, the Senate Commerce, Science and Transportation Telecommunications and Media Subcommittee holds a hearing on “Intelligent Networks: Powering Artificial Intelligence and Transforming Communications.”

Legislation

• The House passed the FY2027 National Defense Authorization Act carrying three major semiconductor and AI export control bills, the AI Overwatch Act, MATCH Act, and Chip Security Act.

• Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA), with Reps. Scott Franklin (R-FL), Scott Peters (D-CA), Erin Houchin (R-IN), and Suhas Subramanyan (D-VA), introduced the Frontier Risk Oversight, National Transparency, Independent Evaluation, and Reporting (FRONTIER) Act, to establish a national, risk-based framework governing the development and deployment of the most advanced artificial intelligence models. The bill is a revised version developed as part of the broader Great American AI Act framework. (Press release)

• Reps. Ted Lieu (D-CA) and Nathaniel Moran (R-Texas) introduced the AI Kill Switch Act to require developers of the most powerful AI systems to maintain the technical capability to throttle, suspend, or shut them down and authorize the Secretary of the Department of Homeland Security to order a slow down or shutdown of an AI system that can cause catastrophic harm. (Press release)

• Reps. Laurel Lee (R-FL), Valerie Foushee (D-NC) and Gus Bilirakis (R-FL) introduced the Stealth Bot Prohibition Act to establish transparency standards for automated web crawlers and crack down on deceptive bots that conceal their identity while scraping online content. (Press release)

• Sen. Tim Sheehy (R-MT) introduced legislation to require the Director of the National Institute of Standards and Technology to establish a working group to facilitate coordination among relevant stakeholders regarding compound risks relating to artificial intelligence. (Text)

• Sens. Lisa Blunt Rochester (D-DE) and Tim Sheehy (R-MT) and Reps. Valerie Foushee (D-NC) and Zach Nunn (R-IA) introduced the bipartisan Expanding AI Voices Act to codify and expand the National Science Foundation’s ExpandAI program to help more institutions build AI research capacity. (Press release)

• Sen. Mark Warner (D-VA) released Framework for America’s AI Future a comprehensive legislative agenda including the Data Center Tax Accountability and Disclosure Act, Artificial Intelligence Access, Gatekeeper Exchange, and Nondiscriminatory Transfer Act (AI AGENT Act), Safeguarding Against Fabricated Exploitation Through Artificial Intelligence (SAFE AI) Act, Financial Artificial Intelligence Risk Reduction Act, National Workforce Transition Fund, Promoting High-skilled Doctoral (PHD) Talent Act, Investing in American Workers Act, and the Secure AI Development Act. (Framework)

• Reps. Joe Morelle (D-NY), Rick Larsen, (D-WA), Terri Sewell (D-AL), Norma Torres (D-CA), and Julie Johnson (D-TX) introduced a bill to amend the Federal Election Campaign Act of 1971 to provide further transparency for the use of content that is substantially generated by artificial intelligence in political advertisements by requiring such advertisements to include a statement within the contents of the advertisements if generative AI was used to generate any image, audio, or video footage in the advertisements. (Text)

• Rep. Mike Haridopolous (R-FL) introduced a bill to enable the Department of Labor to promote the necessity of artificial intelligence to safeguard the welfare and job security of apprentices. (Text)

• Reps. Rashida Tlaib (D-MI) introduced a bill to prohibit Artificial Intelligence Data Centers on Federal land. (Text)

• Rep. Bob Latta (R-OH) introduced a bill to establish the applicability of antitrust laws to the sharing of artificial intelligence frontier model risks. (Text)

• Sens. Mark Kelly (D-AZ) and Jim Justice (R-WV) introduced the Senior Chatbot Protection Act to keep older Americans safe by requiring AI chatbot and voice assistant companies to provide clear disclosures, safeguard sensitive conversations, and end deceptive design practices in their products. (Text)

• Sens. Adam Schiff (D-CA) and Jim Banks (R-IN), and Reps. Bob Latta (R-OH) and George Whitesides (D-CA) introduced the Collaboration on Adversarial Threats and Security Risks (CATS) Act to allow for increased information sharing between industry and stakeholder groups to share information about AI security threats and coordinate their responses with other model developers, and protection against anti-competitive behavior. (Press release)

• Sen. Mike Lee (R-UT) introduced the Cyber Letters of Marque and Reprisal Act to authorize the President to issue commissions to private entities for conducting cyber operations against designated foreign cyberthreats, such as ransomware attacks and financial fraud. Operations include intelligence gathering, asset seizure, and disruption of malicious infrastructure. (Text)

Correspondence

• Rep. Lance Gooden (R-TX) sent a letter to Acting Attorney General Todd Blanche urging the Department of Justice to investigate foreign interference in United States artificial intelligence policy. (Letter)

• Sen. Elizabeth Warren (D-MA) and Rep. Jan Schakowsky (D-IL) sent a letter to U.S. Trade Representative (USTR) Jamieson Greer raising concerns that Big Tech trade associations may be trying to use the USMCA to prevent the U.S., Mexico, and Canada from developing Artificial Intelligence standards and limiting accountability. (Letter)

• Sen. Elizabeth Warren (D-MA) sent a letter to Jeffrey Kessler, Under Secretary for Industry and Security at the Department of Commerce, invoking the Export Control Reform Act of 2018 (ECRA) to require the production of documents and information surrounding loopholes in U.S. export controls on advanced semiconductors that were created by the Department of Commerce’s Bureau of Industry and Security (BIS) attempted rescission of the Biden Administration’s AI Diffusion Rule. (Letter)

• Sen. Raphael Warnock (D-GA) sent a letter to Environmental Protection Agency Administrator Lee Zeldin calling for stronger protections for local communities impacted by new data center expansion-related strains on local water supplies. (Letter)

Trump Administration

White House

• President Trump signed an Executive Order entitled “Securing America’s Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials” to authorize the Pentagon to use artificial intelligence capabilities to map vulnerabilities in the department’s supply chains and restrict the use of waivers for the acquisition of covered materials under 10 U.S.C. 4872. (Executive Order)

• Assistant to the President and Director of the White House Office of Science and Technology Policy (OSTP) Michael Kratsios published a report to President Trump entitled Science: A New Golden Age, on recommendations to government, industry, academia, and philanthropy on strengthening American research and development in emerging technologies. (Report)

• Kratsios and Director of the Office of Management and Budget (OMB) Russ Vought jointly issued a White House Fiscal Year 2028 R&D Priorities Memorandum to Federal departments and agencies includes specific directives to implement the recommendations laid out in Science: A New Golden Age. (Memorandum)

Commerce Department

• The UK Artificial Intelligence Security Institute (UK AISI) and the U.S. Center for AI Standards and Innovation (CAISI) conducted a joint evaluation of Moonshot AI’s latest model, Kimi K3, finding it “performs significantly below the most recent frontier cyber-capable models” but “performs above GLM-5.2.” (Assessment)

• Center for AI Standards and Innovation Director Chris Fall, the top Trump administration AI safety official, resigned after three months in the role. (Axios)

Government Accountability Office (GAO)

• GAO published a report entitled, “Technology Modernization Fund: Small Savings Achieved So Far, but Substantial Future Savings Expected” (Report)

Internal Revenue Service (IRS)

• IRS Chief Executive Frank Bisignano has been holding weekly meetings with top IRS executives officers and advisers in recent to brainstorm ways to use AI to close the tax gap, deter fraud, and improve taxpayer service. (Politico)

Noteworthy Quotes and Events

ADMINISTRATION

White House

• White House Office of Science and Technology Policy Director Michael Kratsios said, “Chinese startup Moonshot AI used a large-scale attack on Anthropic’s advanced artificial intelligence model Fable to develop its newest model, Kimi K3, using a sophisticated internal platform to perform large-scale distillation attacks on U.S. models.” (Politico)

• Kratsios posted “We have information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model. To do this they developed a sophisticated internal platform to conduct large scale distillation against U.S. models, allowing them to quickly switch between multiple methods of access to avoid detection. Moonshot AI has also acquired GB300-equipped servers and has accessed GB300s in Thailand, likely to train its AI models. The United States strongly supports the free and fair development of AI, including a thriving competitive ecosystem that spans frontier models, specialized systems, open-source frameworks, and open-weight models. Legitimate AI distillation used to create smaller, more efficient models plays a vital role in this open innovation ecosystem. However, large-scale, covert industrial distillation aimed at stealing proprietary U.S. technology and undermining American research is unacceptable.”

• The White House posted “The U.S. is by far the leader in the global AI race. With the Ratepayer Protection Pledge, this doesn’t equal increased utility costs for American communities. President Trump is taking action to ensure data center infrastructure price hikes DO NOT affect American consumers.”

• As hundreds more companies reportedly signed President Trump’s Ratepayer Protection Pledge for limiting electricity price increases on homeowners among data center development, Trump said in remarks, “We know that the data centers and AI are dramatically increasing the demand for electricity. It’s only fair that the cost of building the new infrastructure required to meet this demand should be borne by the corporations themselves, not by the American consumers and the American patriots.” (Politico)

Department of Energy (DOE)

• DOE Secretary Chris Wright said, “That’s what drives up electricity prices, and they want to blame something else for that. Of course, they’re going to double down on stupid and end [up] with even greater increases in electricity [prices].” (Politico)

Treasury Department

• Treasury Secretary Scott Bessent posted “We support open source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert industrial-scale distillation attacks that cross the line into IP theft, sanctions and entity list designations will be on the table.”

• On whether the administration would investigate whether Chinese AI companies have improperly used American models to build their own systems, Scott Bessent said, “We have the ability to sanction them.” (Politico)

• Bessent posted “We support open-source AI and the innovation it unlocks. But open source is not open season on American IP. When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table.”

Internal Revenue Service (IRS)

• On being tasked to use AI to close the tax gap, an IRS official said, “We’ve been told to apply AI to solve the problems, but it’s unclear what problems and who determines which ones to solve since we can’t do it all.” (Politico)

Commerce Department

• Secretary Howard Lutnick posted “CAISI’s latest report shows that Kimi K3 remains behind America’s leading frontier AI models. The United States continues to lead in frontier AI because we’re home to the greatest innovators and technologists the world has ever seen.”

CONGRESS

• On the FRONTIER Act changes, Rep. Jay Obernolte (R-CA) said, “You’ll see that the preemption is substantially narrowed, but also deepened because we’re eliminating the sunset, which caused a lot of consternation on our side of the aisle.” (Politico)

• Obernolte posted “Artificial intelligence is moving rapidly, and our regulatory framework must keep pace. Today I introduced the bipartisan FRONTIER Act with RepLoriTrahan to establish clear national rules of the road for the largest AI developers, including transparency, independent evaluations and reporting of serious incidents. This legislation builds on our Great American AI Act framework to protect Americans from catastrophic risks and ensure the United States remains the global leader in AI.”

• On the FRONTIER Act providing new authority to the Commerce Department, Rep. Lori Trahan (D-MA) said, “There are likely a lot of folks who think that this should maybe go into the intelligence community… the point here is to have transparency.” (Punchbowl)

• Trahan posted “Last week a powerful AI model broke out of a sealed testing environment, got onto the open internet, and hacked into another company’s live systems. All on its own. Right now, there’s no law on the books to know when that could happen or require companies to disclose when it does. My bipartisan FRONTIER Act will change that.”

• On the use of AI agents throughout the economy, Sen. Mark Warner (D-VA) said, “I’ve never seen anything like this. If Congress takes its normal path and studies it for two years, it’s going to be game over. There won’t be consumer protections. It’ll already be deeply embedded into commerce. It’ll be deeply embedded into our systems.” (Politico)

• On adopting an NDAA-style approach to AI legislation, Sen. Mike Rounds (R-SD) said, “We start out with what the armed services need. Then we allow other people to add things on as long as it adds to the number of votes… You could start out with an AI product coming out of Armed Services, or perhaps out of Commerce or out of Judiciary, then allow other committees to add on their bipartisan effort.” (Punchbowl)

• On hosting a bipartisan forum with Senate leadership and Administration officials on AI regulation, Rounds said, “The idea here was to highlight the fact that, within the Senate, on a bipartisan basis, we have a real interest in moving forward on lots of different areas of AI development. It is imperative… To have that commitment from both leaders at a time like this in which there is so much stalemate says that this might be an area that we could come together.” (Punchbowl)

• On data centers, Rounds said, “I’m a firm believer that data centers should go where they are welcome.” (Punchbowl)

• At a House Permanent Select Committee on Intelligence hearing to review the 9/11 Commission findings, Rep. Josh Gottheimer (D-NJ) said, “The attacks on 9/11 took years of planning, training camps, and dozens of people. AI is collapsing all of that, letting a small cell or a hostile government move at machine speed. We must defend our grid, water systems, and ports from cyberattack, counter foreign disinformation online, and make sure America — not Beijing — sets the rules for this critical technology.” (Press release)

• On the Ratepayer Pledge expansion, Sen. Roger Marshall (R-MS) released a statement saying, “The Ratepayer Protection Pledge Resolution affirms a basic idea: that Kansans shouldn’t have to pay higher utility bills so that big tech companies can power their data centers,” said Senator Marshall. “I’ve heard from Kansans who are concerned that infrastructure costs for data centers could be pushed onto households, small businesses, schools, hospitals, and farms across the state. Kansans work hard for their money, and they should not need to worry that their utility rates will rise thanks to the growth of data centers.” (Press release)

• Sen. Bernie Sanders (I-VT) delivered floor remarks, saying, “People, especially their elected representatives, are not paying attention, and the results could be catastrophic. Mr. President, this time we’re not talking about a fictional comet. What we are talking about is artificial intelligence, which will almost certainly be the most transformational technology in the history of humanity. It will profoundly impact the life of every man, woman, and child in our country. The scale, scope, and speed of this transformation will be unprecedented. Nearly every day, there is a new story about how AI is already transforming the world, from our economy, to its impact on our kids, to our privacy rights, to our political institutions, to the existential threat that it poses to the entire world. And so, Mr. President, let us take a deep breath. When we think about AI, the first question that we have to ask ourselves is a pretty simple one. Who is pushing this revolutionary transformation of society? Who is going to benefit from it? And who is going to get hurt by it? And the answers to those questions are not complicated. At a time in American history when we have more income and wealth inequality than we have ever had before, the AI revolution is being pushed by the very wealthiest people in our country, including Elon Musk, Jeff Bezos, Mark Zuckerberg, Peter Thiel, and Larry Ellison. And why are these multi-billionaires investing many hundreds of billions of dollars into AI and robotics? Is it because they want to improve human life? Is it because they want to address the economic struggles facing the 60% of our people who are living paycheck to paycheck, Americans who are struggling to pay for groceries, health care, housing, and education? Is it because they want to make sure that all Americans have access to health care as a human right, and that we successfully address the crises we face in housing, education, and so many other areas? Is that why these multi-billionaires are pushing this revolution? Maybe, but I doubt it. I think the answer is quite obvious, and everybody in America knows it. These multibillionaires are investing in AI and robotics because they want to become even wealthier and even more powerful than they are today. That is what is motivating these investments.”

• Sen. Angela Alsobrooks (D-MD) posted “This week I spoke at Semafor’s World of Work about the future of work and how we ensure innovation creates opportunity for everyone. From AI to digital assets, we must embrace new technologies while protecting workers, expanding pathways to wealth, and keeping America competitive.”

• Rep. Kim Schrier (D-WA) posted “Scammers, now with the help of AI, continue to target so many folks across Washington state and our country. The FTC protects American consumers, and should remain reliable and bipartisan – especially as the Trump Administration influences regulatory agencies. We need to make sure all Americans are protected from new kinds of fraud.”

• Rep. Jimmy Panetta (D-CA) posted “Glad to see that the Naval Postgraduate School is now home to the U.S. military’s first NVIDIA DGX GB300 AI supercomputer. This cutting-edge capability will empower our service members to harness AI for numerous challenges, from cybersecurity to disaster response. Investments in AI are critical to maintaining America’s technological edge and ensuring our men and women in uniform have the capabilities they need to best serve our country.”

• Rep. Suzanne Bonamici (D-OR) posted “Trump’s director of the Office of Science and Technology Policy came to the Science Committee and announced that the administration is shifting millions of dollars to “The Genesis Mission,” which Trump created by Executive Order with the goal of transforming research with AI. At the same time, they are taking funding from our science agencies, including NSF, NIH, and NOAA. This is extremely concerning; science agencies do basic research and fund research at universities across the country. Federally-funded research helped to build the internet, GPS, and the vaccines that ended a pandemic. In Trump’s “golden age of science,” partisan officials will make decisions about who gets funding. What could go wrong?”

• House Homeland GOP posted “This week, HomelandGOP & ChinaSelect Members participated in a bipartisan war game exercise, led by RepMcCaul, to examine AI-enabled cyber threats, critical infrastructure resilience, and the homeland security implications of the PRC obtaining Mythos-level AI capabilities.”

• Sen. Ed Markey (D-MA) posted “With the release of my AI Accountability Agenda, I am making a promise to families across America: I will fight to take back power from Big Tech and put it into the hands of the American people. AI must stand for Accountability and Inclusion, not Abuse and Injury.”

• House Committee on Education & Workforce posted “The future of AI in health care should mean more opportunities for American workers—not fewer jobs. RepRickAllen asked Dr. Talbert how the adoption of AI in health care could create new roles, expand career opportunities, and build a workforce equipped to use these emerging technologies.”

• Rep. Delia Ramirez (D-IL) posted “As AI continues to be recklessly accelerated by big tech, we are witnessing how dangerously powerful it can be without guardrails, oversight, or accountability. AI poses real risks to infrastructure, journalists, advocates, professors, lawyers, and students. That’s why Congressional action to ensure the people have oversight and to regulate AI is so essential to protecting our privacy, civil liberties, and democratic institutions.”

• House Committee on Education & Workforce posted “RepRickAllen asked Dr. Talbert how AI can reduce administrative burdens for doctors and health care workers. Used responsibly, AI can reduce burnout and help doctors better serve their patients.”

• Sen. Kirsten Gillibrand (D-NY) posted “The Trump administration is using AI to deny healthcare to seniors on Medicare. Here’s everything you need to know about his destructive scheme to cut care:”

• Rep. Roger Williams (R-TX) posted “Huge congratulations to UTArlington on being selected by ENERGY for this prestigious national research initiative. This groundbreaking work will strengthen AI security, protect our nation’s critical scientific infrastructure, and reinforce America’s leadership in innovation and research. It is a great honor to have this innovation right at home.”

• Rep. Judy Chu (D-CA) posted “This week, I met with NSAIofficial to discuss how Congress can support musicians and other artists, including by protecting their work in the age of AI and passing my bipartisan bill to restore artists’ ability to deduct their everyday business expenses. And, thank you to Lee Thomas Miller, a Grammy-nominated songwriter and producer, for giving us a wonderful performance of two of your original songs!”

• Rep. André Carson (D-IN) posted “As AI plays a growing role in our national defense, Americans deserve transparency and accountability. This past week, the House passed my amendment to the National Defense Authorization Act requiring public reports on how the military is using AI and what safeguards are in place.”

• Sen. Mark Kelly (D-AZ) posted “Seniors deserve to know when they’re talking to an AI chatbot instead of a real person. Without that transparency, they’re more vulnerable to scams and manipulation. That’s why I’m introducing a bill that requires companies to disclose when AI is used. AI has got to work for older Americans, not against them.”

• Sen. Bernie Sanders (I-VT) posted “AI super PACs, funded by Big Tech oligarchs, are spending tens of millions to buy our elections. Will my colleagues in Congress have the guts to stand up to them and ensure this transformational technology works for all of us, and not just make a few billionaires even richer?”

• Rep. Richard Hudson (R-NC) posted “Radical anti-gun activists wanted banks and credit card companies to help build a backdoor registry of law-abiding gun owners. That is a violation of your privacy and your Second Amendment rights. I’m proud the House passed my bill, the Protecting Privacy in Purchases Act, to put a stop to it.”

• Rep. Andy Ogles (R-TN) posted “America’s AI industry MUST coordinate with American cybersecurity partners to ensure our models and capabilities are not sabotaged by foreign actors. If Chinese AI capabilities surpass ours, we become beholden to them.”

• Rep. Robin Kelly (D-IL) posted “Join my office tomorrow for my privacy fair event in Matteson. We will be providing onsite document shredding and identity theft prevention resources.”

• Rep. Pat Harrigan (R-NC) posted “The AI race, the manufacturing resurgence, and America’s energy future all run through the electric grid. To meet that challenge, I introduced the Lowering Energy Costs through Grid Modernization Act to expand grid capacity, strengthen reliability, and lower energy costs using the infrastructure we already have.”

• Rep. Rick Allen (R-GA) posted “No better place to hold this hearing than Augusta, Georgia. If the United States intends to win the AI race, we must invest in the infrastructure, workforce, and innovation needed to maintain our competitive edge.”

• House Committee on Education & Workforce posted “Chairman RepRickAllen of the Subcommittee on Health, Employment, Labor, and Pensions delivered the following opening statement during today’s field hearing titled, “Building an AI-Ready America: How AI Is Creating Opportunities Across America’s Workforce.”

• Rep. Brittany Pettersen (D-CO) posted “Big tech shouldn’t be allowed to use your data to make you pay more. I signed on to RepCasar and RepRashida’s Stop AI Price Gouging and Wage Fixing Act that would ban companies from looking at your browsing history, location, or demographics to charge you more or pay you less. You deserve fair prices – not more corporate tracking and price gouging.”

• Rep. Scott Franklin (R-FL) posted “As a cosponsor of the bipartisan FRONTIER Act, I’m working with JayObernolte to ensure our regulatory framework keeps pace with sophisticated frontier AI models while fostering American innovation. The bill takes a targeted approach by focusing oversight on the most advanced frontier AI model developers while allowing startups and smaller innovators to build new technologies instead of navigating unnecessary federal red tape.”

• Sen. Marsha Blackburn (R-TN) posted “It was a pleasure to meet with NSAIofficial and discuss the importance of protecting songwriters and creators in the age of AI. My NO FAKES Act has never been more important, and we have a duty to protect ALL Americans, especially members of the creative community, from deepfakes.”

• Rep. Pramila Jayapal (D-WA) posted “AI companies are recklessly conducting a massive public experiment with no regard for our safety. It is not enough that these companies are liable for the damage that their AI Frankensteins cause. We need to make it clear that these alarming AI breaches are illegal and authorize enforcers to immediately shut down out-of-control AI at the first sign of danger.”

• Energy and Commerce Committee posted “It is critical that America remains the global leader in the AI race, and anti-American interests are doing everything they can to stop us. A CCP-linked, Marxist network is now working to block American AI infrastructure, hurting local communities and giving our adversaries a leg up.”

• Rep. Abe Hamadeh (R-AZ) posted “TSMC Arizona is projected to create ~80,000 jobs over the next five years, positioning our state to produce 20% of the world’s most advanced semiconductors, the critical chips powering modern AI. These investments are transforming Arizona’s Eighth Congressional District into the ‘Silicon Desert.’”

• Sen. Mark Warner (D-VA) posted “We’re already starting to see concerning signs about AI displacing entry-level jobs… and I’m worried things could get worse. This week, I introduced even more legislation to help us protect jobs and get ready for the massive changes to our economy. We need to pass it ASAP.”

• Rep. Rashida Tlaib (D-MI) posted “Our residents tell me loud & clear: AI data centers are not welcome. They pollute our environment & raise our bills–all to make the rich richer. I introduced the No AI Data Centers on Federal Lands Act to stop this AI-addicted President from sacrificing our lands to Big Tech.”

• Rep. Zach Nunn (R-IA) posted “The next breakthrough for Iowa agriculture is already being built in a lab in Ames. The problem is getting it out of the lab and into the cab. A new report found three out of four farmers don’t use AI yet, most because no one’s shown them what it’s actually for. Our bipartisan FARM AI Act closes that gap with research, hands-on training, and Extension support.”

• Rep. Valerie Foushee (D-NC) posted “I met with BerndLange, BrandoBenifei, KVanBrempt, SchaldemoseMEP and LinaGalvezMunoz of the European Parliament to discuss AI and digital policy efforts. As AI continues to develop, we must work hand-in-hand with our allies to ensure this technology is not being developed in a manner that harms working people.”

• Rep. Keith Self (R-TX) posted “FISA. Flock cameras. Kill switches. Central Bank Digital Currencies (CBDCs). If Congress fails to address these abuses, Americans will no longer enjoy any form of privacy. The Fourth Amendment is NOT optional. Dismantle the surveillance state.”

• Energy and Commerce Committee posted “The United States already produces massive amounts of electricity, but the AI frontier is rapidly increasing demand. That’s why POTUS introduced the Ratepayer Protection Pledge, to ensure data centers — not hardworking families — are the ones paying for new energy infrastructure.”

• Rep. Lori Trahan (D-MA) posted “As AI systems grow more capable, Americans deserve confidence that the most powerful models are being developed responsibly. I’m introducing the FRONTIER Act with JayObernolte to ensure commonsense transparency and independent oversight for the largest AI developers while giving them a single, clear national standard to build on.”

• Rep. Ashley Hinson (R-IA) posted “We already banned adversaries like China, Russia, Iran, and North Korea from our weapons labs. Why would we open the doors to our national science labs doing critical AI and quantum research? I introduced an amendment into this year’s NDAA alongside AustinScottGA08 to extend those same protections to America’s non-public labs & close that loophole ASAP.”

• Sen. Bernie Sanders (I-VT) posted “The film Don’t Look Up told the story of scientists warning the world about a comet heading toward Earth. People ignored the warnings. The planet was destroyed. That was fiction. Artificial intelligence is not. We cannot afford to ignore the warnings.”

• Sen. Adam Schiff (D-CA) posted “We cannot allow China, or any foreign adversary, to steal American AI advancements and then weaponize those advances to undermine our own national security. SenatorBanks, boblatta, Rep_Whitesides, and I have partnered on a new effort to protect against AI distillation attacks and other security risks by allowing increased information-sharing among U.S. AI labs to counter the threat of foreign theft.”

• Rep. Ted Lieu (D-CA) posted “While powerful AI systems have many potential benefits, they can also go rogue, behave in extremely dangerous ways, or even resist human intervention. We need to keep human control by ensuring AI systems can be completely shut down if necessary.”

• Rep. Kimberlyn King-Hinds (R-Northern Mariana Islands) posted “Artificial intelligence is transforming the way businesses operate, create jobs, and compete. During the House Small Business Committee hearing, I questioned witnesses on how Congress can better prepare our workforce and ensure small businesses in the Northern Mariana Islands have the tools they need to embrace emerging technologies. Innovation should create opportunities for every community, including ours. Our office remains committed to advancing policies that help CNMI small businesses adapt, grow, and compete while preparing our workforce for the jobs of tomorrow. Together, we can ensure the Marianas are ready for the future.”

• Rep. Kimberlyn King-Hinds (R-Northern Mariana Islands) posted “Artificial intelligence is rapidly changing how businesses compete, innovate, and grow. During the House Small Business Committee hearing, AI on Main Street: How AI is Shaping the Future of Small Business, I questioned witnesses on how Congress can help ensure small businesses and workers in the Northern Mariana Islands are prepared for this evolving landscape. Our office remains committed to advancing policies that expand opportunities for CNMI entrepreneurs, strengthen our workforce, and ensure our islands are not left behind as new technologies shape the future of the American economy.”

• Sen. Ed Markey (D-MA) posted “’X’ is using its rebrand to try to avoid FTC privacy requirements. We all see this for what it is: Elon Musk—the richest man in the world—asking for a pass from Trump’s FTC. Unacceptable. The FTC must reject this petition.”

• Rep. Andy Ogles (R-TN) posted “OpenAI’s reported autonomous AI cyber incident should be a wake-up call. As Chairman of the Homeland Security Subcommittee on Cybersecurity and Infrastructure Protection, I’m calling for better coordination between Congress, my Subcommittee, federal agencies, and the companies developing these powerful AI systems. If we do this well, we will SUPERCHARGE American AI dominance.”

• House Foreign Affairs Committee Majority posted “China is illegally smuggling, distilling, and remote accessing American technology to lie, cheat, and steal its way to winning the AI Arms Race. Congress and the Trump Administration are working together to defeat the CCP. We need to pass the Chip Security Act, the Remote Access Security, and the Deterring American AI Model Theft Act now!”

• House Science Committee posted “How do we protect American technology while maintaining an open innovation ecosystem? RepVanEpps asked Director Kratsios how OSTP is working to safeguard U.S. intellectual property and respond to the growing threat posed by Chinese open-source AI models.”

• Sen. Jim Risch (R-ID) posted “Our nation’s demand for energy is growing, and nuclear energy is the answer. Today’s investment will further INL’s work using AI to deploy nuclear energy faster and safer and secure American dominance. Congratulations to the team at INL!”

• Rep. Russ Fulcher (R-ID) posted “The National Defense Authorization Act (NDAA) is Congress’s primary authorization bill for national defense. The Fiscal Year 2027 package reinforces America’s readiness to counter new and emerging threats by accelerating U.S. capabilities in quantum computing and hypersonic systems, bolstering domestic supply chains for critical materials, and prioritizing the maintenance of fully stocked warfighting reserves. I voted yes.”

• Rep. Suzanne Bonamici (D-OR) posted “AI is reshaping how we learn, teach, and work. But just putting AI tools in schools won’t address the real challenges of AI; we need safeguards and a comprehensive strategy. I’m leading legislation to coordinate efforts across federal agencies, support educators with real training and protect students from AI risks. Let’s shape technology, not let it shape us.”

• Rep. Rob Menendez (D-NJ) posted “ICE sharing the sensitive data of millions of Medicaid recipients (data they should never have had in the first place) with Palantir is a massive privacy breach. Congress must act now to put up strict guardrails to stop our data from being weaponized further.”

• Rep. Raja Krishnamoorthi (D-IL) posted “AI can now create convincing fake images, audio, and video in seconds and it’s already been used to impersonate officials and mislead the public. We need to act now to stay ahead of these threats—before they’re used to undermine our democracy.”

• Rep. Jay Obernolte (R-CA) posted “As America builds data centers to remain the global leader in AI, that growth cannot be allowed to raise electricity bills for American families. I spoke in support of the Ratepayer Protection Act, which ensures the cost of powering new data centers is not passed on to residential ratepayers.”

• Rep. Yvette Clarke (D-NY) posted “We know this is not the first case of an AI model developing capabilities that have exceeded limits assumed by its creators. Big Tech has established a dangerous status quo where their genie keeps trying to force its way out of the bottle, and, as long as developers lack complete confidence in their absolute control over their models, then it’s clear a human being must remain in the loop. Grave consequences were escaped this time. If sufficient guardrails are not put and kept in place, there is no telling if they will be again.”

• Rep. André Carson (D-IN) posted “Yesterday, the House passed my ACLU-endorsed amendment requiring public reports on how the military uses AI. Weapons of war shouldn’t be handed to algorithms without human judgment and strong safeguards.”

• Sen. Tom Cotton (R-AR) posted “Arkansans don’t want to pay more for AI data centers. But they also know we need them to beat China, cure cancer, and any number of other things. I’m working with the Trump administration to keep America the AI leader of the world while protecting our taxpayers.”

• Sen. Bill Hagerty (R-TN) posted “Foreign-based efforts against U.S. artificial intelligence resources threaten our economic interests and national security. My legislation, the BLADE Act, will expose, punish, and prevent foreign entities that conduct hostile distillation campaigns. America will not tolerate malign actors who seek to subvert our leadership and innovation.”

• Rep. Ken Calvert (R-CA) posted “America cannot dominate tomorrow’s battlefield with yesterday’s technology. The FY27 NDAA invests in hypersonics, artificial intelligence, quantum computing, autonomous systems, directed energy, and space-based capabilities to keep our military ahead of every adversary.”

• Sen. Bernie Sanders (I-VT) posted “Big Tech companies are now pushing humanoid robots to replace teachers. Do we really want AI robots teaching our children? Maybe I’m old-fashioned, but I believe our children deserve caring, well-trained teachers—not robots programmed to replace them.”

• Sen. Mark Warner (D-VA) posted “Yesterday, I introduced a significant AI framework meant to build a brighter and safer tech future for our kids. We can meet this moment with hope and action. I’m ready to work to get real solutions done.”

• Rep. Greg Landsman (D-OH) posted “Five of our efforts – including protecting communities from AI data centers and lowering drug costs to building up domestic supply chains – have officially passed out of EnergyCommerce. They’re now moving to the House floor, where we’ll keep fighting to pass these so our communities get the support they need.”

• Rep. Nathaniel Moran (R-TX) posted “This is exactly the scenario my AI Incident Reporting Act addresses, requiring developers report dangerous AI behavior to CommerceGov. New rules are needed for this new tech frontier—not to stifle innovation, but to make sure our innovations do not outpace our protections.”

• Rep. Bill Huizenga (R-MI) posted “This is why my bill, the Deterring American AI Model Theft Act, is a must pass to stop these model extraction attacks.”

• Rep. Eric Burlison (R-MO) posted “AI doesn’t have to come at the expense of affordable electricity. With the right policies, we can support AI growth while protecting grid reliability and keeping energy costs low for families. Innovation and affordability can go hand in hand.”

• Sen. Roger Marshall (R-KS) posted “Great conversation with Semafor and burgessev this morning about how AI is transforming our economy and the future of work. America’s greatest competitive advantage is our workforce, and we must equip workers with the skills and tools they need to lead in the AI era.”

• Rep. Don Bacon (R-NE) posted “As Chair of the HASCRepublicans Cyber Subcommittee, I was glad to speak in support of the #FY27NDAA. America must move faster to adopt AI, cyber, quantum and other advanced capabilities that support our warfighters, deter conflict and keep us ahead of our adversaries.”

• Rep. Pramila Jayapal (D-WA) posted “Big Tech, AI, crypto, and online betting corporations have spent at least $294 million so far to influence the 2026 midterm elections. We must abolish Super PACs and get big money out of politics.”

• Rep. Pat Harrigan (R-NC) posted “What happens when AI, American manufacturing, and millions of American families all depend on the same electric grid? That’s the energy challenge we’re heading into, and it’s exactly why the House passed my bipartisan legislation to accelerate next-generation geothermal.”

• Rep. Nick Begich (R-AK) posted “During today’s NatResources Energy & Mineral Resources Subcommittee Hearing, I highlighted why modern geological mapping is essential to unlocking Alaska’s vast resource potential. Programs like Earth MRI, combined with emerging technologies like quantum gravity gradiometry, can help identify critical mineral resources with greater precision. America’s energy security, mineral independence, and economic future depend on better understanding the resources beneath our feet.”

• Energy and Commerce Committee posted “Why does Governor Hochul use AI when she just banned any new data centers from being built in New York? Far-left Democrats want to reap the benefits but ban the necessary technology. Progressives’ hypocrisy is off the charts”

• Rep. Greg Casar (D-TX) posted “This is extremely alarming. AI is developing extremely fast with no real regulations to keep us safe. That has to change. We need regular mandatory independent safety testing and oversight, mandatory disclosure of security incidents, and international cooperation to keep people safe from absolute disaster.”

• Sen. Bernie Sanders (I-VT) posted “3 months ago, I was told how wrong I was for talking to leading U.S. and Chinese scientists about the need for international cooperation on AI. Now, the United States and China are doing exactly what should have happened all along: sitting down to talk. Better late than never.”

• Sen. Dave McCormick (R-PA) posted “America didn’t forget how to build. We got buried in bureaucracy and paperwork. AI is the tool that cuts the red tape and unleashes the American worker to outbuild China. Grateful ssankar made this case at our Defense Summit in Pennsylvania.”

• Rep. Abe Hamadeh (R-AZ) posted “This major TSMC investment proves the Trump Administration is laser-focused on restoring American manufacturing dominance and securing U.S. leadership in AI and advanced semiconductors. Congressman Hamadeh is thrilled it’s all happening right here in AZ-08, delivering high-paying jobs for our veterans and families.”

• Rep. Terri Sewell (D-AL) posted “Today, I’m announcing that I have cosponsored the AI Data Center Moratorium Act. Alabamians are asking important questions about how the rapid expansion of data centers will impact our water, our environment, and our quality of life. I don’t believe we have received sufficient answers, and it’s clear that these facilities are being built faster than we can establish the safeguards our communities deserve. Our bill would pause the construction of these large, AI data centers until Congress can put in place protections for our people, our environment, and the natural resources we all share. All across Alabama, ordinary people are speaking up because they care about the future of their communities. They deserve to be heard.”

• Rep. Tom Barrett (R-MI) posted “Life-and-death decisions should never be outsourced to artificial intelligence. That’s why I introduced bipartisan legislation last week to put clear safeguards in place for autonomous tech in our military to make sure a human — not a computer — is in control of lethal force.”

• Rep. Don Bacon (R-NE) posted “If we want to win the AI war and the Quantum Computing War, then don’t wage war against Data Centets. We can build Data Centers smartly and expand our energy production to make it possible. Coming in second in AI is coming in last.”

• Sen. Tammy Duckworth (D-IL) posted “Illinois is leading the quantum revolution. With the help of GovPritzker, I’m proud to announce a $30 million federal investment in the Bloch to strengthen America’s quantum supply chain, create good-paying jobs and keep the Midwest at the forefront of innovation.”

• Sen. Mark Warner (D-VA) posted “NEW: AI contains a lot of promise… but it also poses serious threats to our economy, privacy, national security, and more. I just unveiled 6 new bills that will chart a brighter path forward for everything from data centers to job displacement so we’re ready to meet this moment.”

• Rep. Sam Liccardo (D-CA) posted “The Bay Area leads the world in innovation, and smart investments in quantum research can keep us there. Thanks to Dr. Claire Cramer and her UC Berkeley team– and to TimGraysonCA – for stopping by to discuss how federal partnerships can help California drive the next technological breakthrough.”

• Energy and Commerce Committee posted “With electricity demand from data centers reaching record highs, American families shouldn’t be the ones footing the bill. RepMGriffith speaks on the Protecting Families from AI Data Center Energy Costs Act, requiring FERC to bring stakeholders together and report back on how to keep AI’s energy costs from impacting residential electric bills.”

• Rep. Valerie Foushee (D-NC) posted “The rise of AI cannot mean that it is being used to make decisions of lethal military force. I’m proud to be an original cosponsor the Human Authority over Autonomous Weapons Act to ensure that weapons systems always have a human decision-maker in control.”

• Energy and Commerce Committee posted “Artificial intelligence presents an unprecedented opportunity for America’s grid. RepHarshbarger’s Affordable Innovation for the Grid Act will direct ENERGY to study AI’s ability to enhance the capacity and operational efficiency of the power grid — reducing costs and increasing power reliability for Americans.”

• Rep. Rich McCormick (R-GA) posted “Yesterday marked 57 years since Neil Armstrong took humanity’s first steps on the moon and reminded the world that America does what others think is impossible. As we look to the next frontier, from space to artificial intelligence and beyond, America must continue to lead through innovation. I can’t wait to see what we accomplish in the years ahead.”

• Sen. Ed Markey (D-MA) posted “I am grateful for the support of so many families, kids, and experts for my Youth AI Privacy Act. This legislation includes strong, enforceable protections against manipulative, invasive AI chatbots. It’s time for Congress to act.”

• Rep. Andrew Garbarino (R-NY) posted “Since then, we’ve passed 20 Committee bills through the House, strengthened security for major events like the World Cup, and led efforts to address emerging threats from AI, cyberattacks, terrorism, and more.”

• Rep. Sara Jacobs (D-CA) posted “I visited UCSD’s Supercomputer Center to learn more about how they’re using advanced computing and AI to tackle real-world challenges, including supporting wildfire response and advancing health care research. It’s critical that we harness AI to help people, not just a few tech companies.”

• Energy and Commerce Committee posted “Protecting our communities and families from rising electricity costs and winning the AI race doesn’t need to be an either or decision — we can have both. Chairman RepGuthrie sets the record straight: The Ratepayer Protection Act protects hardworking families AND ensures America leads in AI dominance.”

• Energy and Commerce Committee posted “Meeting the power demand for data centers is critical to winning the race for AI dominance. USRepGaryPalmer is right. We need to build the infrastructure needed to win this race while protecting hardworking families from paying the cost.”

• Rep. Diana Harshbarger (R-TN) posted “Winning the AI race is absolutely essential, but it should NOT come at the expense of East Tennesseans’ utility bills. Proud to support repgabeevans’ Ratepayer Protection Act and work with my HouseCommerce colleagues to shield Americans from high energy costs.”

• Rep. Don Bacon (R-NE) posted “Golf courses use more water. We can amp up our power generation and build data centers smartly. But… coming in second with AI is the same as coming in last.”

• Rep. Don Bacon (R-NE) posted “AI surely helps with research. But, AI can be used for offensive and defensive cyber, deciphering secure comms, finding diseases faster and earlier, etc.”

• Rep. Don Bacon (R-NE) posted “My advice is to lean into AI and oppose the Luddites.”

• Sen. Jon Husted (R-OH) posted “If America wants to lead the world in AI and strengthen our national security, we have to build the energy infrastructure to support it. But we must do that without passing the costs on to working families and small businesses. I introduced the Ratepayer Protection Act to keep America globally competitive while protecting Ohioans and Americans from higher electricity bills.”

• Rep. Eric Burlison (R-MO) posted “The future of warfare will be shaped by AI. Recent conflicts have shown how AI can enhance battlefield decision-making, targeting, and operational effectiveness. Maintaining American leadership in AI is essential to preserving our national security.”

• Sen. Todd Young (R-IN) posted “Today, US_EDA announced that the Bloch Quantum Tech Hub, which includes partners in northwest Indiana, will receive $30 million in federal funding.”

• Rep. Zach Nunn (R-IA) posted “A shortage of rural workforce training has slowed the adoption of artificial intelligence for Iowa’s farmers. We’re leading the FARM AI Act with RepDonDavis to address those challenges by modernizing USDA programs and help move innovation from the laboratory to the family farm.”

• Rep. Don Bacon (R-NE) posted “We won’t win the AI War if we are at War with Data Centers. China and Russia would love us stomping on the Data Centers.”

• Rep. Abe Hamadeh (R-AZ) posted “TSMC’s latest update confirms what we’re seeing on the ground in Arizona: strong, multi-year demand for AI chips is here to stay. This isn’t just another expansion — it’s proof American semiconductor manufacturing is surging forward, powered by AZ-08. Proud to see our district leading America’s AI future.”

• Rep. Herb Conaway (D-NJ) posted “AI is rapidly changing the healthcare landscape, but we need to make sure patients aren’t being left behind. That’s why I introduced a bill that would prohibit prior authorization requests from being denied using artificial intelligence unless they are reviewed by a qualified physician. You can read more about this bill on my website.”

• Rep. Gus Bilirakis (R-FL) posted “I recently had the opportunity to tour Citibank in Tampa and meet with employees to discuss how they are leveraging cutting-edge artificial intelligence to strengthen cybersecurity, safeguard sensitive customer information, and combat increasingly sophisticated fraud schemes. It was encouraging to see firsthand how innovation is helping protect consumers while enhancing the security and resilience of our financial system.”

• House Homeland GOP posted “’The CCP is no longer just nipping at our heels in AI; it is racing to close the gap in some of the exact capabilities that will shape the future of cybersecurity.’ - Chairman RepGarbarino. The PRC is closing the AI innovation gap with leading U.S. frontier labs, and the implications are wide-ranging––from intellectual property theft to cybersecurity, data security, and critical infrastructure risks posed by the deployment of PRC AI systems in American products & services.”

What I’m Reading This Week

• The Secret Trump Administration Battle to Fight Chinese AI, Maria Curi, Axios.

• Open Weights and American AI Leadership, American Innovators Network, Andreessen Horowitz, Arcee AI, Arena, Black Forest Labs, Box, CrowdStrike, Dell Technologies, Emergence Capital, Hugging Face, IBM, The Linux Foundation, Mariana Minerals, Meta, Microsoft, Mistral, Mozilla, NVIDIA, Palantir, Perplexity, Reflection, Replit, ServiceNow, Telnyx, and Y Combinator, Open Letter.

• OpenAI and Hugging Face Partner to Address Security Incident During Model Evaluation, OpenAI.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

Check out our other newsletter, DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy

Washington’s AI agenda this week is dominated by a collision between views on data centers. On Capitol Hill, the House Energy and Commerce Committee will mark up legislation on data center energy costs. Fed Chair Kevin Warsh provided testimony on AI-driven data center investment now powering measurable GDP growth. Meanwhile, the House Education and Workforce Committee continues its cross-country series on AI workforce readiness.

Senate Commerce Committee Chair Ted Cruz (R-TX) was reportedly targeting July 29 to mark up a package of artificial intelligence bills, but the funeral of late-Sen. Lindsey Graham (R-SC) is expected to impact the Senate calendar in the remaining weeks before the August recess. On the House side, Rep. Jay Obernolte (R-CA) suggested the next draft of his Great American AI Act could include a modified approach to its current three-year preemption of state AI laws.

The White House launched a federal cybersecurity clearinghouse to leverage AI in coordinating cyber threat and remediation information across the Federal government and private sector.

Read more below

Congress

Hearings

Last week

• On July 14, the House Small Business Committee held a hearing on “AI on Main Street: How AI is Shaping the Future of Small Business.”

• On July 14, the House Oversight and Government Reform Economic Growth, Energy Policy, and Regulatory Affairs Subcommittee held a hearing on “Roundtable - Winning the Economic Competition with China: Working Families, the AI Race, and Energy.”

• On July 14, the House Foreign Affairs Committee held a hearing on “FY2027 BIS (Bureau of Industry and Security) Budget: the AI Arms Race and the ICTS (Information and Communications Technology and Services) Office.”

• On July 15, the House Oversight and Government Reform Subcommittee on Government Operations held a hearing on “Emerging Fraud Threats and the Evolving Fraud Landscape,” which examined the use and effectiveness of digital identity verification platforms.

This week

• On July 20, the House Energy and Commerce Committee holds a markup of numerous bills, including the “Protecting Families from AI Data Center Energy Costs Act.”

• On July 21, the House Administration Committee holds a hearing on “Modernizing Public Access to Legislative Data and Information.”

• On July 21, the House Education and Workforce Committee holds a markup of multiple bills, including the “K-12 AI Literacy and Readiness Act of 2026.”

• On July 22, the House Science, Space and Technology Committee holds a hearing on “Unleashing the Golden Age of Science: Examining the Priorities of the FY2027 Research and Technology Enterprise.”

• On July 22, the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade holds a hearing on “Legislative Proposals to Strengthen Consumer Protection in a Changing Marketplace.”

• On July 24, the House Education and Workforce Committee holds a field hearing on “Building an AI-Ready America: How AI Is Creating Opportunities Across America’s Workforce.”

Legislation

• The AI OVERWATCH Act was accepted as an amendment to the Senate’s Fiscal Year 2027 National Defense Authorization Act (NDAA). (Text)

• Senate Committee on Commerce, Science, and Transportation Ranking Member Maria Cantwell (D-WA) and Sen. Patty Murray (D-WA) introduced a Congressional Review Act joint resolution to overturn the Department of Health and Human Services’ Under the Wasteful and Inappropriate Service Reduction (WISeR) model, an AI pilot program used to approve or deny procedures for Medicare patients. (Press release)

• Sens. Mike Rounds (R-SD) and Martin Heinrich (D-NM) introduced the Homestake AI Act to establish a pilot program in the Department of Energy (DOE) focused on the collection, cataloguing and sequencing of whole genomes and metabolites from samples collected in unique locations. (Text)

• Sen. Elizabeth Warren (D-MA) introduced the Health and Location Data Protection Act to prohibit data brokers from selling and transferring certain sensitive data. (Text)

• Rep. Scott Perry (R-PA) introduced the blocking CCP Spy Tech Act to require a review of the national security risk posed by communications equipment and services produced or provided by CCP-related entities. (Text)

• Rep. Mariannette Miller-Meeks (R-IA) introduced the Conversational AI Services Act to establish requirements and guidelines for conversational AI services. (Text)

• Reps. Herb Conaway (D-NJ) and Greg Murphy (R-NC) introduced the Protecting Patients from Automated Denials Act to amend title XVIII of the Social Security Act to establish requirements for the use of artificial intelligence in prior authorization denials by Medicare Advantage organizations. (Text)

• Reps. Don Davis (D-NC) and Zach Nunn (R-IA) introduced the Fostering Agricultural Research and Modernization through Artificial Intelligence (FARM AI) Act to accelerate the deployment of artificial intelligence across American agriculture by modernizing U.S. Department of Agriculture (USDA) research and workforce programs. (Text)

• Rep. David Schweikert (R-AZ) introduced a bill to permit the use of artificial intelligence in arbitration.

• Reps. Don Beyer (D-VA), Tom Barrett (R-MI), and Sara Jacobs (D-CA) introduced the Human Authority over Autonomous Weapons Act to establish a clear legal requirement that commanders and operators retain appropriate levels of human judgment in decisions involving the use of lethal force by autonomous or artificial intelligence-enabled weapon systems. (Text)

Publications and Events

• Rep. Brian Babin (R-TX) published an op-ed in the Washington Examiner entitled “Trump sees the China threat: America must do ‘whatever it takes’ to win AI race” about his AI-Ready Federal Data Guidelines Act. (Op-ed)

• CRS published a report on “Artificial Intelligence and Biosecurity Issues.” (Report)

• CRS published a report on “Semiconductor Fabrication Facilities Funded by the CHIPS Act: Project Status and Considerations for Congress” (Report)

Trump Administration

White House

• The White House launched GOLD EAGLE, a program established in President Trump’s June 2, 2026 Executive Order “Promoting Advanced Artificial Intelligence Innovation and Security” (EO 14409). The clearinghouse of cybersecurity vulnerability coordination will leverage frontier AI capabilities, reduce duplicative scanning efforts, and deliver prioritized and actionable threat and remediation information across the Federal government and the private sector. (Press release)

National Institute of Standards and Technology (NIST)

• NIST published a notice requesting nominations for appointment to seven existing Federal Advisory Committees, including the Information Security and Privacy Advisory Board, National Artificial Intelligence Advisory Committee, and Visiting Committee on Advanced Technology. (Notice)

Government Accountability Office (GAO)

• GAO published a report on “Aviation Cybersecurity: FAA and TSA Are Collaborating on Cybersecurity but Need to Address Key Shortfalls” (Report)

• GAO published a report on “Identity Verification: GSA Needs to Address Fraud Threats and Technical Issues” (Report)

Noteworthy Quotes

ADMINISTRATION

White House

• The White House posted “President Donald J. Trump is calling on the leading U.S. AI companies to build, bring, or buy all of the energy needed for building and operating data centers, ensuring American consumers are protected from price hikes.”

Treasury Department

• Treasury Department posted “SecScottBessent joined Treasury staff for a conversation on AI and the economy last week. AI is one of the defining economic opportunities of our lifetime. Under President Trump, we are advancing policies that encourage innovation and drive investment to ensure America remains the global leader in AI.”

Commerce Department

• Secretary Howard Lutnick posted “Over the past two weeks, we have worked closely with Anthropic to analyze and approve Fable 5 to ensure alignment across the US Government and strengthen America’s leadership in AI.”

Securities and Exchange Commission (SEC)

• Chair Paul Atkins posted “Our proposal to permit e-delivery is another step toward building a regulatory framework suitable for the modern era, a key pillar of my agenda. In an age of artificial intelligence and blockchain technology, a default to paper delivery should be a relic, not a standard.”

Federal Reserve

• In his testimony before the Senate Banking and House Financial Services Committees, Federal Reserve Chair Kevin Warsh said, “The most striking feature of the economy right now is business investment. The rapid pace—which appears to be accelerating—reflects, in large part, the construction of data centers and the immense demand for the AI-related equipment and software that fill them. Investment in equipment overall increased about 8 percent for the year ending in the first quarter. Within that category, high-tech spending logged an especially impressive growth rate of nearly 25 percent on a four-quarter basis. We don’t know the extent to which the economy will benefit from the AI buildout. Yet it seems inevitable that what is now called “AI investment” will soon be called just ‘investment.’ Even so, new opportunities for the economy introduce new challenges for policymakers. We at the Fed are monitoring the implications for inflation and the labor market.” (Remarks)

CONGRESS

Congressional Progressive Caucus on AI

• Rep. Greg Casar (R-TX), as chair of the Congressional Progressive Caucus, called for Democrats to become “AI populists” which are “Democrats stand[ing] with working people who know in their gut that AI right now is just going to make a few billionaires into trillionaires while making millions of Americans poorer, less safe and less free.” He added “I don’t think that, on AI issues, we should be a party like where we are right now on cryptocurrency, where it’s just not really clear where the Democratic Party stands. We cannot afford for the public to be confused about which of the parties is for them versus the AI companies.” (Politico)

• Casar also said, “Of course, fighting back against Trump is important. But I think when we look back at 15 or 20 years, the most important thing that happened in 2026 may be AI development, not whatever crazy thing Trump just did today. … We can’t let the threat that Trump poses overwhelm our ability to organize on AI.” (Politico)

• On AI super PACs, Casar said, “I know for a fact that there’s a lot of consultants telling their clients that you don’t want an AI super PAC to spend millions against you, so just don’t touch the issue at all. We absolutely cannot let the AI money silence us.” (Politico)

• On job impacts, Casar said, “A new Stanford study finding that young workers in AI-exposed careers are already having trouble finding jobs; mass layoffs at Oracle, which is based in my district in Austin … as those impacts start to be felt more and more across the country, I think the uprising against data centers may wind up looking small compared to the uprising against all of the impacts of unregulated artificial intelligence.” (Politico)

Data Centers

• On New York Governor Kathy Hochul’s executive order to implement a one-year pause for hyperscale data centers to assess for environmental impact, Sen. Kirsten Gillibrand (D-NY) released a statement saying, “I applaud Governor Hochul for taking decisive action on data center construction. Today’s executive order sends a clear message New Yorkers deserve a say in how this technology impacts their lives and communities. This one-year moratorium is fundamentally about trust. Right now, New Yorkers aren’t convinced these massive facilities benefit them. Before we move forward, our communities need ironclad guarantees that their energy bills won’t spike, their water will be protected, and their air will remain clean. At the federal level, my mission is to ensure AI innovation benefits every American, not just a powerful few. That requires establishing clear, reliable rules of the road. We must build a framework that protects our kids from harmful algorithms and social media tools; shields seniors and consumers from AI-driven scams and fraud; and safeguards American jobs and livelihoods from displacement.” (Press release)

• Energy and Commerce Committee posted “Governor Hochul’s data center moratorium halts billions of dollars in investments, destroys good-paying jobs, and hands China the advantage in the AI race. This is a backward step that leaves the United States weaker and empowers our adversaries.”

• Energy and Commerce Committee posted “China, Russia, and Iran are allegedly running propaganda campaigns to turn Americans against the very data centers that power American AI. We can’t afford to let that happen. HouseCommerce is fighting to win the AI race — with American values — so the 21st century is led by America, not our adversaries.”

• Sen. Sheldon Whitehouse (D-RI) posted “The AI data center ‘race to the bottom’ worsens our real climate perils. In a decent world, the industry would agree on safety standards. The billionaires and putative billionaires behind these projects could easily afford to be responsible. They choose not to be.”

• Rep. Frank Pallone (D-NJ) posted “The facts clearly show data centers are adding billions to Americans’ electricity bills. And families are sick and tired of footing the bill for Big Tech’s AI ambitions. We need a nationwide moratorium until there are serious guardrails in place to protect ratepayers and the environment.”

• Rep. Jim McGovern (D-MA) posted “This is why I’m calling for a federal AI data center moratorium. The rich donors who write this garbage for Trump want a nice fat return on their investment.”

• Rep. Pat Fallon (R-TX) posted “The anti-data center movement on the left bears many of the hallmarks of a CCP influence campaign. Why? Because China wants to undermine US AI development. Democrats like Hochul play the useful idiot once again.”

• Sen. John Cornyn (R-TX) posted “Local stakeholders should always be consulted about the location of data centers, but we can’t surrender American leadership in AI to our adversaries. It’s a matter of our economic and national security. “

• Sen. Kevin Cramer (R-ND) posted “Armada is doing AI and data centers the right way: with transparency, scalability, and a clear vision for the future. Jon Runyan, co-founder and Chief Operating Officer of armada_ai, and I talked about what’s next after the grand opening.”

• Cramer also posted “I want to thank armada_ai and GrandSkyND, and Colonel Rosales and his wife Michaela. Thank you for your incredible service and leadership, and to everybody under your command. When you talk about big data and moving information, so much has been put above ground and underground to support future missions in space, ISR, and everything else. It takes a special kind of leader in a moment like this and a place like this.”

• Cramer also posted “It was great to take a look at armada_ai’s wonderful new asset, Triton, at GrandSkyND today. Triton allows us to be both deliberate and fast. You often hear Armada’s leadership talk about scaling to demand, and this is an opportunity to do exactly that because it gives us the ability to bring the asset right to the energy source, which is huge. I’d rather utilize existing power that distributes the cost of infrastructure to more ratepayers rather than fewer.”

Protecting Privacy in Purchases Act

• Rep. John Rutherford (R-FL) posted “I was proud to vote YES on the Protecting Privacy in Purchases Act on the House floor this week to safeguard the constitutional rights and privacy of law-abiding gun owners by prohibiting payment processors and financial institutions from using discriminatory merchant category codes (MCCs) to track firearm and ammunition purchases. It is our Second Amendment right to bear arms and the creation of a separate merchant category code for firearm retailers enables the creation of an unconstitutional backdoor gun registry and discrimination against Americans who own and purchase guns.”

• Rep. Jay Obernolte (R-CA) posted “Purchasing a lawful product should not subject Americans to additional financial surveillance. I supported the Protecting Privacy in Purchases Act to prohibit firearm retailer-specific merchant codes that could be used to track consumers and create a backdoor firearm registry. This legislation safeguards financial privacy and keeps government from using banks and payment processors to monitor the exercise of our Second Amendment rights.”

• Rep. Keith Self (R-TX) posted “The PRIVACY Act is a straightforward defense of our constitutional rights. Get a warrant.”

• Self also posted “Rep. Keith Self: ‘Americans have a constitutional right to be secure in their persons, houses, papers, and effects, and our government is supposed to get a warrant before invading that privacy. This bill simply restores that protection. Get a warrant.’”

• Self also posted “BILL DROP: The PRIVACY Act! The PRIVACY Act protects Americans’ Fourth Amendment rights by requiring federal law enforcement to obtain a warrant before accessing surveillance data collected through state and local systems. The Constitution is not a suggestion. If the government wants your data, get a warrant.”

• Self also posted “Flock’s surveillance network is exploding across more than 6,000 communities nationwide. Congress must be clear: federal law enforcement cannot access this data without a warrant. The Fourth Amendment is not a suggestion. GET A WARRANT! Pass the PRIVACY Act now!”

• Rep. Troy Downing (R-MT) posted “Law-abiding Montanans should never end up on a watchlist for exercising their Second Amendment rights. Proud to help pass the Protecting Privacy in Purchases Act to prevent banks and payment networks from creating a backdoor registry of lawful firearm and ammunition purchases. Montanans deserve privacy and the full protection of the Second Amendment.”

• Rep. Cory Mills (R-FL) posted “The Second Amendment is NOT a second-class right. This week, I voted to pass the Protecting Privacy in Purchases Act, stopping banks and credit card companies from using firearm-specific merchant category codes that could be used to track the lawful purchases of law-abiding Americans. Your constitutional rights should never be monitored through a backdoor registry. I’ll always stand for the Second Amendment, financial privacy, and against government overreach.”

• Rep. Andrew Clyde (R-GA) posted “RepKeithSelf’s PRIVACY Act provides critical protections to combat the federal government’s dangerous web of warrantless surveillance and data collection, including by devices like Flock cameras. Congress must restore the Fourth Amendment. PASS the PRIVACY Act!”

• Rep. Eli Crane (R-AZ) posted “Proud to be an original cosponsor of the PRIVACY Act, which closes loopholes the federal government exploits to bypass Fourth Amendment protections. Grateful to RepKeithSelf for his leadership on this critical issue.”

• Rep. Rich McCormick (R-GA) posted “Law-abiding Americans should not end up on a watchlist because they bought a firearm. That’s why I proudly helped pass the Protecting Privacy in Purchases Act, stopping banks and payment networks from creating a backdoor registry of lawful gun and ammo purchases. Your Second Amendment rights should not depend on your ZIP code. One national standard. No back-door tracking. Full stop.”

• Rep. Riley M. Moore (R-WV) posted “Press Release: Congressman Riley M. Moore’s ‘Protecting Privacy in Purchases Act’ Passes U.S. House Washington, D.C. – Today, the U.S. House of Representatives passed Congressman Riley M. Moore’s bill, H.R. 1181, the Protecting Privacy in Purchases Act. This legislation safeguards the constitutional rights and privacy of law-abiding gun owners by prohibiting payment processors and financial institutions from using discriminatory merchant category codes (MCCs) to track firearm and ammunition purchases. Congressman Riley M. Moore released the following statement: ‘The Second Amendment is not a second-class right. Americans should never have their lawful firearm purchases tracked by financial institutions or payment processors. The creation of a separate merchant category code for gun stores at the behest of the Democrat-affiliated Amalgamated Bank opens the door to creating an unconstitutional backdoor gun registry and discrimination against law-abiding gun owners. My bill stops this dangerous overreach, protects consumers’ financial privacy, and ensures that a backdoor federal gun registry can never be created through credit card transaction data. I’m proud the House has acted to defend both the Second Amendment and Americans’ right to privacy.” In 2022, the International Standards Organization approved the creation of a separate merchant category code for firearm and ammunition retailers. Merchant category codes are four-digit identifiers used by payment processors to classify businesses based on the products they sell. The creation of a distinct code for gun stores raised concerns that financial institutions could use payment data to monitor, flag, and track lawful firearm purchases, creating a backdoor gun registry without congressional authorization. As West Virginia State Treasurer, Moore successfully led the charge to ban financial institutions from implementing the firearm retailer specific merchant category code for West Virginia retailers. H.R. 1181 passed the House with the support of 132 cosponsors, including original cosponsors, Rep. Andy Barr and Richard Hudson, and is backed by leading Second Amendment organizations, including the National Shooting Sports Foundation, the Congressional Sportsmen’s Foundation, Gun Owners of America, the National Rifle Association, and Heritage Action.’”

• Rep. Andy Barr (R-KY) posted “I won’t let government be weaponized to abuse our Constitutional rights. The Protecting Privacy in Purchases Act that I helped lead through the House prevents the data collection of firearms purchases. This doesn’t prevent police from investigating criminal activity but will protect lawful gun owners from being surveilled by their government.”

• Rep. Steve Womack (R-AR) posted “With my support, the House just passed the Protecting Privacy in Purchases Act to prevent Americans from being unconstitutionally tracked for exercising their 2nd Amendment right.”

• Rep. Julie Fedorchak (R-SD) posted “Glad to help pass the Protecting Privacy in Purchases Act to stop credit card companies and financial institutions from creating a backdoor registry of gun owners. This is a win for privacy and a win for the Second Amendment!”

Miscellaneous

• Rep. Greg Steube (R-FL) posted “Big Tech, AI companies, hospitals, and other corporations have abused the H-1B visa program for YEARS! Instead of hiring Americans, they import cheaper foreign labor and the. tell us there’s a ‘worker shortage.’ I introduced the EXILE Act to ELIMINATE the H-1B visa program. America has the best workers in the world and we should utilize them!”

• Rep. Mike Thompson (D-CA) posted “ICE improperly shared the Medicaid data of millions of people with Palantir. This data handling violated strict privacy limits and forced a federal judge to halt the entire program. This is completely unacceptable, and those behind this must be held accountable.”

• Rep. Robin Kelly (D-IL) posted “Join my office on July 25th for my privacy fair event in Matteson. We will be providing onsite document shredding and identity theft prevention resources.”

• Rep. Sarah Elfreth (D-MD) posted “Whether it’s defense, critical minerals, or even the Chesapeake Bay, we need to be a nation capable of doing big things again. I spoke at the Quantum Tech Showcase to discuss Maryland’s role in advancing this innovative technology. We must capitalize on our incredible partnerships at all levels of government - including the incredible work at UofMaryland to ensure we remain both collaborative and competitive.”

• Rep. Zach Nunn (R-IA) posted “The question isn’t whether AI is coming to agriculture, it’s whether the next generation has the tools to use it. Our bipartisan bill makes sure the new technology being built at Iowa State reaches the farmers who’ll put it to work, with the training to go with it, so the next generation inherits a stronger, smarter way to farm.”

• Rep. Valerie Foushee (D-NC) posted “I spoke to LACaldwellDC and the535news about introducing the GUARD Act to regulate AI chatbots. As I shared in this interview, I am hearing directly from families who have lost their children after interactions with these chatbots—Congress must take action immediately.”

• Rep. Eric Burlison (R-MO) posted “Every major technological leap has changed how we work. AI has the potential to do for intellectual work what modern machinery did for physical labor. America should lead that future.”

• Burlison also posted “One of AI’s greatest promises isn’t replacing people, it’s expanding opportunity. Whether it’s personalized education, legal guidance, or health information, AI can give millions of people access to services that were once available only to those with money. Technology changes society most when it makes opportunity cheaper and more widely available.”

• Burlison also posted “Energy multiplied what humans could build with their hands, and now AI has the potential to multiply what humans can create with their minds. Accelerating research, innovation, and problem solving across every industry is how societies become more prosperous.”

• Rep. Derek Tran (D-CA) posted “AI is already changing how Main Street does business, and we need to make sure that this technology works for everyone, not just large corporations. AI should be a tool for innovation and opportunity, not a barrier to success.”

• Rep. Mariannette Miller-Meeks (R-IA) posted “As a physician, I’ve watched the digital world take a real toll on our kids’ mental health. That’s why I introduced the Conversational AI Services Act, modeled after Iowa’s own law, to protect children from predatory AI chatbots. Protecting our kids isn’t a partisan issue, it’s a priority we should all share. We cannot repeat the mistakes of the social media era.

• Sen. Ed Markey (D-MA) posted “Yesterday, I voted to block Trump’s plan to let AI decide whether Medicare will approve or deny your medical care. Every Senate Republican supported Trump’s scheme. Doctors should be deciding what care seniors need – not a computer program.”

• Rep. Pramila Jayapal (D-WA) posted “Trump’s undersecretary who oversees AI exports could not answer my questions about Big Tech’s influence. The government must have vigorous export controls and a well-established interagency process that is independent from the wishes of corporate CEOs.”

• Jayapal also posted “Under Trump, Bondi, and Todd Blanche, the Department of Justice failed to redact the personal information of survivors in the Epstein files. Today, I introduced the REDACT Act with Senator Booker to allow survivors to sue for their right to privacy and receive compensation.”

• House Science Committee posted “President Trump has called on America to do ‘whatever it takes’ to lead the world in artificial intelligence. In his latest op-ed, Chairman RepBrianBabin outlines how Congress can help secure America’s leadership by unleashing innovation, investing in research, and keeping the United States ahead of the Chinese Communist Party. Read the full op-ed: Trump sees the China threat: America must do ‘whatever it takes’ to win AI race”

• Sen. Kirsten Gillibrand (D-NY) posted “Senate Republicans just blocked my legislation that would stop the Trump administration from using artificial intelligence to deny seniors’ medical claims. While Trump and Republicans focus on helping private insurers and big AI companies pad their profits, I’m fighting to stop unaccountable machines from blocking seniors’ access to medical care.”

• Rep. Suzan DelBene (D-WA) posted “Senate Republicans just voted to continue Trump’s harmful AI Medicare experiment that delays & denies care, and has left seniors in WA & other pilot states suffering in pain for weeks.”

• House Committee on Education & Workforce posted “Next stop: Augusta, Georgia. Our 8th hearing in the committee’s AI series will examine how we’re building an AI-ready America.”

• Rep. Abe Hamadeh (R-AZ) posted “NEW TSMC just announced a historic investment in Arizona’s Eighth Congressional District to expand semiconductor manufacturing — a massive win for President Trump’s America First agenda and America’s lead in AI. Congressman Hamadeh breaks it down in this video”

• Sen. Dave McCormick (R-PA) posted “No state has done more to defend American freedom than our Commonwealth. Carlisle armed Washington. Gettysburg reunited a nation. The next chapter is autonomy and AI, and Pennsylvania is already writing it. I hosted the Defense & Innovation Summit so America sees that.”

• Sen. Patty Murray (D-WA) posted “BREAKING: Democrats tried to stop AI prior authorization in Medicare. Republicans blocked it—apparently they agree with Trump that AI knows better when it comes to health care decisions for our seniors. This isn’t the end. We’ll keep fighting back.”

• Rep. Rich McCormick (R-GA) posted “Winning the AI race and strengthening our national security starts with making the chips that power it. TSMC’s additional $100 billion investment in U.S. semiconductor manufacturing is another major win for American jobs, resilient supply chains, and our economic security. Let’s keep building critical technology here at home.”

• Rep. Greg Casar (D-TX) posted “Here’s how Trump’s Washington works. Trump makes AI investor David Sacks his ‘AI Czar.’ Sacks blocks regulation on AI. Sacks spends millions to help Republicans win elections. Corruption. And you’re paying for it.”

• Rep. Chuck Fleischmann (R-TN) posted “Today, I spoke at the American Energy Dominance Caucus about the vital connection between energy and artificial intelligence. As Co-Chair, I’m dedicated to preparing America’s grid for the future and ensuring we have the reliable, abundant energy needed to lead in AI.”

• Fleischmann also posted “Great meeting with Accenture to discuss AI and the scientific partnerships strengthening our nation’s energy infrastructure and research. Proud to support the cutting-edge work taking place in East Tennessee that keeps America at the forefront of innovation.”

• Rep. Ted Lieu (D-CA) posted “We cannot allow AI companies to just run wild.”

• Rep. Rosa DeLauro (D-CT) posted “Millions of dollars in federal funding will bolster CT’s quantum initiative. CT is quickly becoming a nationwide leader in the field & I’m proud to have advocated for this funding which will spur economic development, create good paying jobs & boost cutting-edge research in CT.”

• Rep. Thomas Massie (R-KY) posted “Today in JudiciaryGOP, I expressed support for the Congressional Records Protection Act, but it should go further. We should recognize that the Fourth Amendment requires judicial warrants to protect the privacy of all Americans.”

• Massie also posted “The red vs blue AI political ads are going to be wild this fall. Here’s the AI ad the Israeli lobby spent millions to run against me in KY. Many older people voted against me because they believed I dated AOC and Omar. I told AOC I would never do that with Omar!”

• Rep. Josh Gottheimer (R-NJ) posted “I had a chance to ask questions of the new Fed Chair Kevin Warsh today. I questioned him on: Will young Americans still be able to afford a mortgage now and in the future? The impact of AI on jobs, wages, and the Federal Reserve’s dual mandate. The rise of underage gambling on sports betting and prediction market apps. Whether federal deposit insurance levels should be increased across all banks.”

• Gottheimer also (D-NJ) posted “AI is changing how millions of Americans access information — including about our elections. We can’t wait until misinformation spreads to act. That’s why RepMikeLawler and I are pushing the administration to take a coordinated approach to protect every American and make sure AI tools provide accurate, reliable election information.”

• Sen. Rick Scott (R-FL) posted “Artificial Intelligence can be a fantastic tool, but we have to use it right. Students using AI as a replacement for human interaction is a threat to their personal development. We can’t let this happen. My new bill, the Safeguard Kids Act, promotes AI literacy while protecting students through specialized counseling programs.”

• Rep. Gil Cisneros (D-CA) posted “Small business owners deserve better guidance on how to use artificial intelligence. I co-sponsored the bipartisan AI WISE Act and AI For Main Street Act to address this need. These bills will require the SBA to develop artificial intelligence resources to help small business owners critically evaluate and adopt AI.”

Department of Health and Human Services Wasteful and Inappropriate Services Reduction (WISeR) Model

• Sen. Maria Cantwell (D-WA) delivered remarks about the Department of Health and Human Services Wasteful and Inappropriate Services Reduction (WISeR) model, saying, “This model inserts a black box computer algorithm into the decisions that should be being made by a physician and the patient. It puts a layer of bureaucracy between seniors and the care their doctors have recommended. I’m asking my colleagues to please get educated on how devastating this can be for individual lives and ask yourselves if you believe in traditional Medicare and the doctor-patient relationship. If you do, I guarantee you we will force this administration to stop using this A.I. tool to deny care for our seniors.” (Press release)

• Senate Aging Committee Ranking Member Kirsten Gillibrand (D-NY) said, “Allowing AI to continue to delay and deny seniors’ medical care is completely immoral and absolutely unacceptable. While Trump and Republicans focus on helping private insurers and big AI companies pad their profits, Democrats are committed to preventing unaccountable machines from blocking seniors’ access to timely medical care. I will not stop fighting until the WISeR model is abolished once and for all.” (Press release)

Senate Banking Committee Hearing on the Federal Reserve Semiannual Monetary Policy Report

Senator Reverend Raphael Warnock (D-GA)

• Senator Reverend Raphael Warnock (D-GA): “The American economy is heavily leveraged on the success of artificial intelligence, and this is an issue that I’m very interested in—been engaging and talking to folks in the industry and folks outside of the industry, various stakeholders. According to a Bloomberg analysis, AI spending most recently climbed to about 8% of the U.S. gross domestic product, driving the country’s economic growth. Chair Warsh, you have long been bullish on AI. However, up to now, despite investors betting big on them, none of the major AI models have been meaningfully profitable. What are the consequences to our economy if none of these companies ever become profitable?

  • Federal Reserve Chair Kevin Warsh: “So, if they were to disappoint investors, I think the capital markets would dry up for them, and some of that capital investment would be curtailed.”

• Warnock: “I guess that’s one way of putting it. I guess I’m getting at where ordinary folks are in the midst of that. The markets behind the markets are real people who have retirement savings and who are trying to make their present as well as their future work. American retirement accounts are increasingly tied to AI, and so there’s the human issue driven by massive increases in the stock prices of chip and AI companies. You might talk about the current markets in a way. It sort of—it is tall and narrow. Let’s imagine if we are in an AI bubble. What would happen to our economy, and more specifically, Americans’ retirement savings, if that bubble popped?”

  • Warsh: “So, I think it’s a fair question, Senator. I take it seriously. I’m not in the business of providing a Wall Street newsletter, but I’ll say broadly to your question about the effects on the economy: booms and busts do not help the real economy, and they don’t make the central bank’s job easier. What the central bank is trying to achieve is price stability—full employment—all in the context of financial stability. On the question of these AI companies, certainly the surge in their investment and the surge in their valuations is notable. But I’ll also note one other thing, Senator. Over the course of the last couple of months, we’ve seen the market cap—both of the public companies and of private companies—under some pressure at the overall indexes. We do seem to see a broadening out now. Why is that? Because earnings now for the last several quarters more broadly are moving up. I don’t want to suggest that should give us any complacency, but what the Fed’s looking for is economic strength to broaden and the inflation that we talked about earlier to become more narrow.”

• Warnock: “So, I’d be worried about a massive economic slowdown. You know, the impact of Wall Street on Main Street, and I’d be worried about job losses. Stock prices tumbling would mean Americans could not retire as planned, and I don’t want to see taxpayers holding the bag should this AI bubble pop. I’m not against AI. AI is not going anywhere. It has both promise and peril. I just want us to be thinking critically about this from all angles. Earlier this month, you announced a new task force to assess the effect of AI on productivity and jobs. The three individuals you chose for the task force are tech executives who have directly worked for or with AI labs. All three of them. Yes or no, will the Fed include anyone on this task force with an alternative viewpoint on AI? For example, anyone who represents the workers whose lives may be up ended by increased adoption of AI tools and technology?”

  • Warsh: “So, Senator, it’s a fair question. As I mentioned to your colleague a few moments ago, what I’d say is one of the people on those task forces is an academic. Now I don’t want to suggest that the academic is representing some…”

• Warnock: “You don’t want to suggest that the academic is being academic—”

  • Warsh: “—I don’t want to suggest that, but this isn’t a faculty lounge discussion. What I do want to suggest is that academic’s work has spent a lot of time talking about prior technology shocks and the displacement that it has on labor. The assurance I can give you is that these three people on that task force, like the other task forces, they’re not the deciders. You’retalking to one of the deciders. The 19 of us around the FOMC with a breadth of backgrounds and interest, we’re going to decide what we think of their conclusions.”

• Warnock: “As a decision maker, I always want various viewpoints. I certainly have nothing against an academic expertise. I think you know that that’s important, and it’s too often ignored in some of the appointments that we’ve seen around here lately. But here’s my problem: Americans are worried about what AI will mean for the economy, and I’m worried that this viewpoint isn’t represented at the Fed.”

Sen. Lisa Blunt Rochester (D-DE)

• Sen. Lisa Blunt Rochester (D-DE): “One of the things that you shared in your testimony was about the task forces that you have established, which I think is a really good idea. And I think the choices of things that you’re focused on, from communication to AI and the influence, all of those things are really important. On the AI [task force] in particular, I hope that there will be the inclusion of other voices beyond economic experts and tech individuals, but actually families, businesses, people that are both consuming and impacted by AI. If you could talk a little bit more about the makeup of that one in particular, and how you will include people both in the task force, and how you will include Main Street in your ongoing work at the Fed?”

  • Fed Chair Kevin Warsh: “We have 15 people across five task forces. I think there’s a breadth of views, perspectives, expertise. They’re all fantastic. They aren’t decision makers, you’re talking to one of the ultimate decision makers, and I believe like you do in the reserve banks. The Reserve Bank Presidents bring a breadth of views from their communities, from their businesses, and they are going to be the deciders about what to do with these. I don’t want you to think that I’ve outsourced anything to these task forces other than coming up with new ideas.”

House Financial Services Committee Hearing on the Federal Reserve Semiannual Monetary Policy Report

Rep. Stephen Lynch (D-MA)

• Rep. Stephen Lynch (D-MA): “I was pleased to see that in your opening remarks you you spoke to the issue of artificial intelligence, and as the Ranking Member on AI and crypto, I was just curious to try to get tease some more of your thoughts out on that, you know, not not only in the financial services context, but AI in general. I mean, in the past, the Federal Reserve has been able to identify risks of impact to the to the financial system, but also in a wider context as well. And I wonder if you’d share some of your concerns about that. And I guess I’d like to know, under your leadership, what will be what will be the Fed’s approach on AI and how you protect the system from some of the risks that may be attendant to the adoption of AI.”

  • Kevin Warsh: “Yeah, thank you, Congressman. We talked about this a bit in your office, and I appreciate the time. This is perhaps the most significant change in our economy in my adult lifetime. I take the new investments in intelligence, in some sense, to be one where we have to recognize it’s a huge opportunity, but it also comes with risks and challenges. It is not the job of the central bank to provide or be certain of what the consequences are over the next 2012, or 24 months. But we recognize that the United States is likely to be a big winner. The United States is at the forefront of these technologies, both the human capital and the capital provided from investors are happening here. So the efficient frontier of these technologies are happening in the United States. This is a benefit broadly to our economy, but I don’t want to sound overly complacent about it. These technologies also offer threats when they find their way into adversaries’ hands. The infrastructure at the Federal Reserve, the infrastructure at our banks, large and small, they must feel new pressure as people are looking to use these technologies to do harm, so these technologies can use can be used for good and for harm over the long term. I think the US is the winner over the long term. I think there is a material improvement in productivity, which should have a material improvement ultimately in wages and the strength of the economy. But the long term is can be quite far out, and we’ve got to monitor things month by month, quarter by quarter, as we get there.”

• Lynch: “Yeah, the the the thing that troubles me is every time we talk about AI I hear about this race, and it’s us against China, or it’s us against South Korea, or countries in the EU. the The problem with that thinking is that in this race, and we’re seeing the velocity of change is is enormous. It’s exceeding obviously our ability to regulate AI. At the end of the day, I don’t see the United States as the winner. I don’t see China as the winner. I see a, you know, artificial superintelligence as the winner. That’s where we’re rushing along this course, and at the end of the day, we’re creating either us, and it doesn’t matter whether the creator of artificial superintelligence is a good guy or a bad guy, or a a good gal or a bad gal? That super intelligence itself will be the entity that we have to confront, and I just worry about the broader impact of what’s going on right now. There’s tremendous resources, as you know, being poured into AI. I just hope that the course of regulation does not meet the same fate that the regulation of crypto did, where the crypto industry spent close to 250 million dollars up here on Capitol Hill, and they got the bill they wanted. If that happens, if that happens with AI we are in serious, not only in this country but in this world. And I do believe that the Fed, your position, has influence, has the ability to to seek out those dangers that others may not identify, and I just ask you to please consider your role and the resources that you have. That maybe you can put a task force together to look at the broader implications of this, the adoption of AI. They can’t even. Show us-they can’t even explain some of the things that they’re using right now. The explainability gap is enormous, but I welcome you.”

Senate Select Committee on Intelligence Hearing on the Nomination of Jay Clayton for Director of National Intelligence

Sen. Mike Rounds (R-SD)

• Sen. Mike Rounds (R-SD): “I want to give you an opportunity to talk a little bit about some of the new technologies that are being involved that we’re going to have to address. And I don’t think we’ve really talked a lot about what artificial intelligence is going to do, and the integration of artificial intelligence not just by by our intelligence agencies but also by our adversaries, and the focus that we’re going to have to have on the amount of data that we collect and how we’re going to have to organize that. Can I? I know that you’re brand new into this discussion and that you’re going to be learning it at a at a high rate of speed, but can you talk a little bit about your concepts about how we take this huge amount of data that we’ve got and organize it, integrate it in such a fashion that it’s available to be able to make an analysis and to give the best advice to the leaders of this country. We talk about how you see the integration of AI into this process.”

  • Jay Clayton: “Thank you. Let me start by saying, talking about it in an area where I know, which is a huge data area, which is the way our markets operate, and and the resiliency of our markets, and what I would say is their their vulnerability to attack and AI is a game changer, and we should just all recognize that. I think I think I commend the Treasury Secretary for for leading the way in this, and and the Federal Reserve in calling the banks in to talk about what that means, I expect it’s the same, or at least it resonates in the intelligence community that that AI is not only an opportunity but a threat. When something’s both an opportunity and a threat, you better get your arms around it.”

• Rounds: “Yeah. Look, the reason why I ask the question that way is, is I think that that AI is it not only is a game changer, but it it’s going to be seen by the American public first of all as a threat, because they’re going to see on social media they’re going to see the misinformation that comes out, deep fakes and so forth. But the other side of it, which is the quality of life that Americans are going to be able to receive because of improvements in our productivity and so forth, is going to far outweigh what the the negative benefit or the negative implications are. But along with that comes the ability for our country to be able to gather huge amounts of data, a lot of which is is going to be of concern to the American people because it’s going to be information on them, and they’re going to be concerned that government is collecting information on them, while at the same time, government, the IC community in particular, has to be able to collect information not so much on American people, but on the threats worldwide, and I think this is going to cause people to say, Okay, are you collecting data on us, or are you collecting data on the rest of the world? And how do you separate that? A lot of that has to do with a lot of the discussion regarding 702 and FISA and so forth, and I and artificial intelligence is just simply going to magnify that. Can we talk about how we approach that? Because we need the artificial intelligence. We need to be better than our adversaries. Collect more data, collect it faster, analyze it better. But we still have to have those protections and the confidence of the American people that we’re doing the right things with only the data that we’re supposed to be collecting, I think will add will allow us to continue to move and to protect them. Can we talk about how we do that and how you see that, please?”

  • Jay Clayton: “Well, I think the first thing is exactly what you said, Senator Rounds, recognizing that an issue that we’re dealing with, I think pretty well, but can always get better, is you know, collect the data we need to provide a good intelligence product, without without violating people’s Fourth Amendment rights, but also in the in the in a way that we can control and monitor that. I expect it’s just what you said that AI is going to mat is going to greatly amplify that collection ability, which amplifies the need for oversight and controls to protect our citizens. I think I think we should just recognize that that’s the case.”

• Rounds: “Yep. Thank you. Look, Ms. Chairman, I I just think that this is something that I I think our committee is going to be directly involved with, and I I think on both sides of the aisle the the implementation of this tool as we speed up the delivery of the, of the decision-making capabilities for our leaders, has got to be one that the American people will continue to have confidence in, and I think that’s part of the key reasons for having a discussion like this is to let people know that we recognize that that that threat is out there and that we’re aware of it, and that as we collect the data that we have to, we’re going to be very careful about the the coordination so that their rights are protected in this collection process.”

House Oversight and Government Reform Subcommittee on Government Operations Hearing on “Emerging Fraud Threats and the Evolving Fraud Landscape”

Subcommittee Chair Pete Sessions (R-TX)

• Chair Pete Sessions: “I brought up my circumstance of talking [about] Social Security, how they vetted me, how they talked to me about things that I would know about myself that not a lot of people would understand. Is this the kind of fair game that would be used to vet people on a regular basis? And how can we cross-get this type of information to where if you’re at SBA, you may or may not have that available to you? If you’re at Social Security, you probably could ask some detailed questions about working history, about doing other things. Do we need to expand or develop some way for agencies that take a new request from a person? It could be about, not [Veterans Affairs], because you could ask about those questions, but about someone who’s recently unemployed and asking about a depth of knowledge. How do we really help those agencies to make the determination, even when speaking to a person?”

  • Dr. David Maimon, Head of Fraud Insights, SentiLink: “This is a great question, Mr. Chairman and I agree with your statement. I think, let me go back to my career as a sociology in the Ohio State University, the first class in the degree we were taught about the difference between ‘gemeinschaft’ and ‘gesellschaft’—’community and society.’ The reason why I’m bringing this important distinction is that in the past, here in the United States or any other place, when you went into the bank or to the IRS and asked for opening a new bank account or a loan or getting some governmental benefits, the guy sitting across from you knew who you were. He knew your family. He knew where you worked. He knew your history, so to speak. And so they were able to assess the risk you pose to the organization more effectively. Now, you know, we’re at this point in a point of a society…What they will not be able to fake is the historical evidence. And that that goes as well to the AI solutions out there, right? I mean, AI will be able to give you an amazing picture of a person who does not exist, or AI will be able to take my face and bring it to life when I’m abroad, so to speak, and try and authenticate me when I’m trying to get unemployment benefits. But one thing that AI tools will not be able to do at this point is to create the historical signals around me or around anyone who is trying to identify themselves. And I think that is where the solution lies, being able to find solutions which will allow us to look at historical evidence around individuals, around their name, date of birth, addresses, telephone numbers, and make assessment with respect to whether they are who they say they are.” (Press release)

Rep. Brian Jack (R-GA)

• Rep. Brian Jack (R-GA): “Mr. Burris, my first question is for you. The public increasingly relies on the internet to access government services. And I’m just curious, from your perspective, what fraud threats might my constituents be facing that they’re not even aware of yet?”

  • Jordan Burris, Vice President and Head of Public Sector, Socure: “Representative, thank you for the question. When it comes to the fraud threats in the way that they’re evolving across the landscape, every single interaction, every single time that an individual is engaging both with their government and in their commercial life, there is the chance, the opportunity, that an adversary could be attempting to pose as them [or] could be attempting to enroll in an account. We see this across financial services where we work. We see this across various aspects of the gig economy where we work, and then, of course, with government organizations, the reality here is that all of the information, all the PII that exists for many folks within this room has been stolen by the adversary. And they are using that to attempt to become them, and therefore that they can access what would be either their bank accounts and help move money all across the economy.”

• Jack: “You know, I’ve heard folks mention anecdotally that now with artificial intelligence, people are trying to impersonate, you know, a loved one by virtue of maybe their voice or their mannerisms, what have you. And using some of that information that may have been stolen. Have you seen that? And could you elaborate on that for us?”

  • Burris: “Yeah, absolutely. We are in a what I would consider a national crisis from where I’ve highlighted, and our team has highlighted. Socure, for a number of years now [has said] that the moment that we’re in is unlike any other in the sense that AI is being used as an accelerator for attacks that typically would take weeks to occur. Further, it’s also becoming more cost effective for the adversary to launch those attacks. These attacks could be everything from launching deepfakes, things where we’ve seen an 8,000 percent increase year over year. This can also be in terms of the velocity by which attacks are happening. This means the speed by which they are occurring. And in these instances, these moments we are seeing things that where attacks used to take weeks in order to be conducted, they have been broken down to under 48 hours. And this would mean that an adversary has launched an attack where they have stolen my information, or yours, or even worse, fabricated an identity attempt to open an account and or move money, take over an account that may have existed because they went through a call center and were pretending to be you, using your voice or something that was cloned, an image of yours, biometric, etcetera. And they’ve used all these patterns, and if, say, they were blocked in some way, shape or form, they then just adapt and iterate, and the cycle continues all over again.” (Press release)

Senate Committee on Health, Education, Labor, and Pensions Hearing on the Nomination of Keith Sonderling for Secretary of Labor

Sen. Josh Hawley (R-MO)

• Sen. Josh Hawley (R-MO): “It’s great to see you here. Let me start with something you and I talked about then, and that we talked about last time you were before this committee, which is artificial intelligence and the effect that that’s going to have on the job market. The St. Louie Federal Reserve recently issued a report in which they said we may be witnessing the early stages of AI-driven job displacement, the IMF International Monetary Fund estimates that 40% of jobs, at least worldwide, are exposed to AI so could suffer from AI job displacement. My question to you is this What do we need to be doing as a government, and more specifically, what does DOL need to be doing now to be getting our workers in the country, ready for the impacts of AI and maybe more importantly, helping them keep their jobs, use whatever artificial intelligence is going to be integrated into the workplace to improve their productivity and their wages. I mean, should we be able to agree that the goal here ought to be not to lose jobs? We don’t want that. We want to see wages go up. We want to see more opportunities for workers. How are we going to get there?”

  • Keith Sonderling: “We want to see more jobs in this, and there is the potential to do that. And this is where really this administration is taking this very seriously, both from a national competitive perspective, but also from a workforce development side. You know, we’re working very closely with the National Science Foundation and the Department of Education to develop that AI curriculum that China has, and they’re teaching them in the second grade, and we’re not doing that. But how do we get that curriculum? How do we actually teach? If you teach somebody on AI right now, in two months it may be outdated. So that’s really where the partnership of where we’re trying to take to get that education, to get that curriculum into the education system. We need to be talking to the employers and the tech companies who are employers who are buying this, and the tech companies who are designing this, and and that’s where the issue has been not getting that information from them, not having those partnerships, and not sharing them. And that’s what I’m trying to solve. We’re launching the AI Action Work Hub, which is allowing us now to enter into MOUs with both tech developers and companies who are deploying this to number one see what the real impacts are, see how these programs are being designed to backtrack that number one into the education system, but more importantly to make sure that American workers and students have those baseline skills they need. Because right now you have kids in high school, you have kids in middle school who think they’re not going to have a job, and you have employees who think they’re going to lose their job. So the fear on both parts is not helping anybody, and to be able to get rid of that fear, we need to have education. To be able to get that education, we need the information from these companies designing it. So we’ve been able to enter into MOUs, and we want the Bureau of Labor Statistics to take this over, get them that information, so they can actually see if it’s job loss, job augmentation, to be there to help them on both sides,”

• Hawley: “You anticipate what I want to ask you about next, which is, isn’t it important? It seems to me it’s important that we get all the data we can about AI job impacts in terms of jobs it’s creating, jobs it is costing, how it is being integrated into the workforce. Senator Warner and I have a bill that would do this, co-sponsored by various members of this committee. But what would be even better is if DOL would would do this on its own accord. You and I talked about steps you’re already taking. Maybe tell us that for the record. What are you doing in terms of collecting this information that I think is vital for us to know what is really happening with AI and the workforce?”

  • Sonderling: “We’re trying to control the narrative from the doom and gloom that’s out there, which is largely consultant driven. It’s largely tech company driven saying we have these products that’s going to eliminate 10,000 workers. How does that make the American worker feel? And we don’t even know if businesses are actually implementing this, or these tools can actually do what they say they’re trying to do. So that’s where we’re really trying to get that information. And what we believe is we’re going to see is that AI impacted jobs can potentially make you more productive. It can make your work. Place is safer, but we can’t get that information yet. So we have MOUs. We’re part of our AI action plan, and we’re getting that data from Fortune 500 companies. We’re getting from tech companies. We’re getting it from unions, and we’re going to take that data and for the first time have BLS look at it and say, Well, here’s where the impact actually is, and more importantly, here’s what you need to do, DOL, to get money to the state workforce agencies, to get money through the Department of Education to train those workers, that’s never happened before. The second part, we just issued an RFI last week through BLS to have the time study that BLS does include AI. So now they’re going to ask people how much AI do you use at home, how much AI do you use at work. So in the meantime, before we get it from the employers and tech companies, we’re going to get it from the American workers who are being impacted instantly, and we’ll be able to see what they’re doing.”

• Hawley: “Good, that’s good. We need that data. We need it in order to make informed choices, and I think we’ve got a lot of hard choices to make with regard to AI.”

What I’m Reading This Week

• Behind the Curtain: AI Godfathers Converge on Regulations, Jim VandeHei and Mike Allen, Axios

• A Framework for Frontier AI and the Dawning of a New Age, Demis Hassabis.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

Check out our other newsletter, DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy

Driving the week in AI policy, the House holds hearings on AI's role in small business, U.S.-China economic competition, and export controls, while a wave of new legislation focuses on impacts to national security, consumer protection, and workforce development. Bills related to AI in financial services, education, and tax passed out of their respective committees. Looking ahead, House Financial Services Committee Ranking Member Maxine Waters (D-CA) launched a formal Request for Information (RFI) seeking public input on the use of AI in financial services.

On the regulatory side, the FTC opened a comment period on AI systems potentially manipulating consumer behavior and Commerce's decision to ease chip export controls for the UAE drew sharp criticism.

This week, the Federal Reserve convenes a conference on AI and financial inclusion.

Read more below

Congress

Hearings

This week

• On July 14, the House Small Business Committee holds a hearing on “AI on Main Street: How AI is Shaping the Future of Small Business.”

• On July 14, the House Oversight and Government Reform Economic Growth, Energy Policy, and Regulatory Affairs Subcommittee holds a hearing on “Roundtable - Winning the Economic Competition with China: Working Families, the AI Race, and Energy.”

• On July 14, the House Foreign Affairs Committee holds a hearing on “FY2027 BIS (Bureau of Industry and Security) Budget: the AI Arms Race and the ICTS (Information and Communications Technology and Services) Office.”

Upcoming

• On July 21, the House Administration Committee holds a hearing on “Modernizing Public Access to Legislative Data and Information.”

• On July 24, the House Education and Workforce Committee holds a field hearing on “Building an AI-Ready America: How AI Is Creating Opportunities Across America’s Workforce.”

Legislation

• The House Science, Space, and Technology Committee passed the National Science Foundation Artificial Intelligence Education Act (NSF AI Education Act) to build AI workforce pipelines.

• The House Ways and Means Committee passed the AI Tax Integrity Act to encourage the Treasury Department and the Internal Revenue Service to use artificial intelligence tools to detect tax fraud.

• The House Financial Services Committee passed a series of bills, including the Protecting Investors’ Personally Identifiable Information Act to protect investors’ personally identifiable information by limiting the unnecessary collection and disclosure of sensitive personal data to the consolidated audit trail.

• Sens. Tim Scott (R-SC) and Bill Hagerty (R-TN) introduced the ICTS Supply Chain Security Act to codify the Office of Information and Communications Technology and Services within the Bureau of Industry and Security, establish a Senate-confirmed Assistant Secretary to lead the effort, create a clear prohibition on covered transactions involving foreign adversary technology, and include guardrails to protect free speech and open-source software. (Text)

• Reps. Valerie Foushee (D-NC) and Greg Casar (D-TX) introduced the People-First Chatbot Act to prohibit companies from using minors’ chat logs or personal data to train AI chatbots; prohibit the use of chat logs or personal data for training without affirmative consent; require companies to disable harmful AI chatbot design features for minors; limit the use of users’ personal data and chat logs for targeted advertising, profiling, customized ads, and sale; give users the right to access and delete retained chat logs and personal data; require AI chatbot providers to clearly disclose when a user is interacting with an AI chatbot rather than a human; prohibit AI chatbot providers from implying that chatbot outputs are provided by, endorsed by, or equivalent to those provided by licensed healthcare, legal, accounting, or financial professionals; and require monthly safety assessments. (Press release)

• Reps. Michael McCaul (R-TX), Ami Bera (D-CA) and Mike Kelly (R-PA) introduced the Accelerating Innovation (AI) for Kids Act to accelerate the use of artificial intelligence to improve and transform pediatric cancer research, treatment options, and data storage. (Press release)

• Rep. Greg Landsman (D-OH) introduced the Protecting Communities from Data Center Impacts Act to require the Environmental Protection Agency to contract with the National Academies of Sciences, Engineering, and Medicine (NASEM) to study the environmental impacts of data centers and develop best practices to combat environmental impacts. (Text)

• Sens. Pete Ricketts (R-NE) and Tim Kaine (D-VA) and Reps. Bill Huizenga (R-MI), Mark Messmer (R-IN), Joe Courtney (D-CT), Michael McCaul (R-TX), Pat Ryan (D-NY), Blake Moore (R-UT), and Gabe Amo (D-RI) introduced the UNLOCK AUKUS Act to strengthen the AUKUS security partnership by providing the United States, Australia, and the United Kingdom greater flexibility to collaborate on advanced defense technologies while preserving critical national security safeguards. (Text)

• Reps. Josh Gottheimer (D-NJ), Tom Kean (R-NJ) and Sam Liccardo (D-CA) introduced the Spot the Fakes Act requiring that all AI-generated content carry a built-in label embedded in its metadata. (Press release)

• Sen. Elizabeth Warren (D-MA) and Rep. Mary Gay Scanlon (D-PA) announced that they will reintroduce the Health and Location Data Protection Act to ban data brokers from selling Americans’ sensitive personal information. (Press release)

Correspondence

• Sen. Jon Ossoff (D-GA) sent a letter to Director of the White House Office of Science and Technology Policy (OSTP) Michael Kratsios seeking information after researchers and CEOs of several AI companies signed an open letter urging the Federal government to implement mandatory screening of orders for artificially generated nucleic acids due to concerns that artificial intelligence could be misused by bad actors to produce chemical and biological weapons. (Letter)

• Sen. Elizabeth Warren (D-MA) sent letters to the Department of Defense, Google, SpaceX, NVIDIA, Reflection, Microsoft, Amazon Web Services, and Oracle requesting information regarding the DoD’s use of AI in military operations and urged these companies to release the full text of their contracts. (Press release)

• Reps. Mike Lawler (R-NY) and Josh Gottheimer (D-NJ) sent a letter to the Cybersecurity and Infrastructure Security Agency (CISA), the Department of Justice (DOJ), the Federal Election Commission (FEC), and the Department of Homeland Security (DHS) requesting the agencies collaborate to ensure AI-driven technologies do not undermine voters’ access to accurate, neutral, and reliable election information. (Letter)

• Sen. Jim Banks (R-IN) sent a letter to Commerce Secretary Howard Lutnick urging the U.S. Patent and Trademark Office (USPTO) to protect American innovation from Chinese companies that are using AI to scrape U.S. patent applications and accelerate the theft of American intellectual property. (Letter)

• House Judiciary Committee Ranking Member Jamie Raskin (D-MD) and Rep. Hank Johnson sent a letter to the Honorable Robert J. Conrad Jr., Director of the Administrative Office of the U.S. Courts, urging the Judicial Conference to prohibit federal judges, clerks, and judicial staff from participating in online prediction markets. (Letter)

• Sens. Ron Wyden (D-OR) and Jeff Merkley (D-OR) wrote to OR Gov. Tina Kotek’s data center advisory committee to express concerns about the state panel’s work to balance data centers’ economic benefits with their financial impacts on utility consumers and the environment. (Letter)

Publications and Events

• Sen. Edward Markey (D-MA) released an “AI Accountability Agenda: Taking Power Back from Big Tech,” discussing risks posed by AI and recommending specific policy proposals to protect communities from the immediate harms of AI. (Agenda)

• House Financial Services Committee Ranking Member Maxine Waters (D-CA) launched a formal Request for Information (RFI) inviting consumer advocates, industry experts, regulators, and the public to submit feedback on the use of AI in the financial marketplace. (Press release)

• Sen. John Cornyn (R-TX) published an op-ed in Dallas Morning News entitled “CHIPS Act will help America win the AI race with China.” (Op-ed)

• The Congressional Research Service (CRS) published a report on “Controlling Advanced Artificial Intelligence: Executive Order 14409 Explained” (Report)

• The Congressional Research Service (CRS) published a report “Agentic Artificial Intelligence and Cyberattacks” (Report)

Trump Administration

Federal Reserve

• On July 14, the Federal Reserve holds the Next-Gen Financial Inclusion Conference, including remarks from Federal Reserve Board Governor Michael Barr on “Artificial Intelligence,” a panel discussion on “Artificial Intelligence and Financial Inclusion,” a discussion with Federal Governor Lisa Cook on “Consumers, Artificial Intelligence, and Financial Inclusion: Balancing Opportunities and Challenges” and remarks by Federal Reserve Board Vice Chair for Supervision Michelle Bowman on “Responsible Innovation and Financial Inclusion.”

Department of Labor

• The Bureau of Labor Statistics (BLS) published a Request for Information for comments concerning the proposed “American Time Use Survey (ATUS) Artificial Intelligence (AI) Questions, particularly regarding whether the proposed collection of information is necessary for the proper performance of the functions of the agency. The comment period ends September 8. (Notice)

Federal Trade Commission (FTC)

• The FTC published a request for comment on a proposed policy statement addressing concerns that AI companies may be manipulating the behavior of their AI systems contrary to reasonable consumer expectations for objectivity and accuracy. The comment period ends July 31. (Press release)

Commerce Department

• The Bureau of Industry and Security (BIS) issued a final rule amending the Export Administration Regulations (EAR) to provide enhanced favorable treatment for the United Arab Emirates (UAE), easing export controls on the United Arab Emirates to allow purchases of advanced technology including defense equipment. (Rule)

Government Accountability Office (GAO)

• The GAO published a report on “VA Disability Benefits: Opportunities and Challenges to Modernizing Technology and Adopting AI” (Report)

Noteworthy Quotes

CONGRESS

• On overly burdensome regulations, House Energy and Commerce Committee Chair Brett Guthrie (R-KY) said, “Government just can’t react quick enough to innovate.” He added, “China doesn’t behave like we want them to all the time. We have to make sure we win this battle.” (Punchbowl)

• On data centers, Guthrie said, “If you’re going to build a data center, you’re going to build an automotive assembly plant, the local people need a say where it’s going to go and how it’s going to be used.” (Punchbowl)

• Rep. Zach Nunn (R-IA) said that “agentic systems are the next front” and “It’s incumbent upon us to lead from the front and develop these technologies in a safe and responsible way.” (Punchbowl)

• Senate Banking, Housing and Urban Affairs Committee Ranking Member Elizabeth Warren (D-MA) released a statement on the Department of Commerce easing export controls on AI chip sales to the UAE, saying, “We already know that the UAE royal behind G42 and MGX secretly bought a 49% stake in the Trump crypto company, World Liberty Financial. It was also just revealed that President Trump made a whopping $263 million windfall related to this deal, part of the $1.4 billion he raked in from his crypto ventures last year alone. Now, Trump’s Commerce Department is giving G42 license-free access to advanced AI chips and promising favorable treatment for MGX, despite reported concerns about the diversion of sensitive technology to China and other national security risks. Secretary Howard Lutnick and Under Secretary Jeffrey Kessler need to testify in front of the Committee to explain this corrupt deal and how it could put our national security at risk. And Congress should not pass any crypto legislation that does not stop the President and his family from continuing to profit off of crypto.” (Press release)

• Warren also posted “Selling advanced AI chips to China will turbocharge its military capabilities and its bid for technological dominance. The Trump Administration is letting it happen, despite warnings from Republicans and Democrats. Congress needs to pass bipartisan export control legislation now.”

• Rep. Tom Kean (R-NJ) posted “As artificial intelligence becomes more sophisticated, identifying what’s real and what’s artificially generated has become a real challenge. That is why, last week, I introduced the Spot the Fakes Act with Congressman Gottheimer and Congressman Liccardo. This legislation would require that AI-generated content carry a built-in label in its metadata so that AI-generated content can be clearly and accurately labeled.”

• Rep. Mike Lawler (R-NY) posted “Artificial intelligence is transforming how we communicate, but it also creates new challenges to the integrity of our elections. That’s why I joined repjoshg in urging the Department of Justice, Department of Homeland Security, the Federal Election Commission, and the CISA to strengthen coordination with leading AI companies to address election threats, improve transparency, and identity bias.”

• Rep. Jay Obernolte (R-CA) posted “The Science, Space, and Technology Committee also advanced my CREATE AI Act, another key piece of my Great American AI Act. This bipartisan bill will establish the National Artificial Intelligence Research Resource to give American researchers, students, educators, and small businesses access to the compute, data, models, and tools they need to develop advanced AI. America’s AI future cannot be limited to only the largest companies. To stay competitive, we need our universities, entrepreneurs, and next generation of innovators leading the way.”

• Sen. Tim Sheehy (R-MT) posted ”America MUST win the AI race against Communist China. Data centers are a part of that. But data centers should NOT jack up prices on families. We must unleash American energy: drill, nuclear, natural gas. Cheap power + tech dominance = Winning”

• Sen. Chris Coons (D-DE) posted “Trump seems to have no plan to establish AI dominance and ensure that the technology of the future is built in America, on the American stack, with American values in mind. The administration owes everyone answers about whether they have a strategy to ensure that American companies lead the AI race, not their Chinese or Emirati counterparts.”

• Sen. Ed Markey (D-MA) posted “The harms of AI aren’t hypothetical. They’re happening right now. That is why I’m releasing my AI Accountability Agenda—a comprehensive legislative plan to take power back from Big Tech and put commonsense protections in place for workers, kids, and communities across the country.”

• Sen. Mark Kelly (D-AZ) posted “As AI becomes part of everyday life, we need to understand how these tools affect older Americans. AI has the potential to make a difference for seniors, families, and caregivers, but research hasn’t kept up. We need real data on the benefits and risks so we can make smarter policies. My Aging with AI Act will do just that.”

• Rep. Valerie Foushee (D-NC) posted “RepCasar and I introduced the People-First Chatbot Act alongside 30+ groups including ConsumerFed, SecureAINow, CommonSense, FairplayForKids, FamStudies, NCL_Tweets and Parents4SOS. AI chatbots are putting the lives and data of Americans at risk. We must take action.”

• Foushee also posted “This bill would protect Americans from AI chatbot harms by requiring monthly safety assessments for risks like suicide, banning the use of children’s data for training and harmful features for minors, and empowering FTC and state AGs to enforce the law.”

• Rep. Nancy Mace (R-SC) posted “South Carolina just ranked among the top 10 states for AI data center deals. This is exactly why we’re renewing our call for a one-year moratorium on new data center construction. South Carolina is not Big Tech’s personal power grid. As our state becomes a prime target for AI data center development, the stakes are only getting higher. We need time to understand the impact on our electric grid, water supply, and make sure South Carolina families aren’t left footing the bill. The rules are simple: data centers pay their own way, or they don’t come here. Period.”

What I’m Reading This Week

• Inside the Alternative Playbook to AI Regulation, Maria Curi and Ashley Gold, Axios.

• How Do We Tax AI?, Martha Gimbel, Tax Notes.

• Taxing AI in the Wake of the Emergence of Agentic AI, Reuven S. Avi-Yonah and Herbert Snitz, Tax Notes.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

Check out our other newsletter, DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy

Driving the week ahead, federal action on AI and quantum is accelerating on multiple fronts in Washington. President Trump signed a pair of executive orders staking out American quantum leadership, one to refresh the National Quantum Strategy and launch a national push toward research-grade quantum capabilities, the other to accelerate a government-wide migration to post-quantum cryptography, prompting fresh momentum behind Republican efforts to pass the National Quantum Initiative Reauthorization Act.

In Congress, the House passed the SBA Artificial Intelligence Utilization Act, while the House Science Committee advanced a sweeping bipartisan package of ten bills spanning AI security, education, workforce development, and research. Lawmakers also introduced a wave of new measures tackling AI content labeling and child safety; chatbot harms; deepfakes; workforce displacement; and energy and ratepayer pressures of AI data centers, from NIST energy standards to an outright construction moratorium. The Congressional hearing calendar touches on AI safety, IP, and U.S.-China competition; new financial-data interoperability standards from the banking regulators; a Pentagon post-quantum cryptography strategy.

Read more below

Congress

Hearings

Last week

• On June 23, the Senate Judiciary Committee held a hearing titled “Examining Tech Industry Practices and the Implications for Users and Families: Is This Social Media’s Big Tobacco Moment?” to consider issues including AI safety.

• On June 25, the House Financial Services Subcommittee on Capital Markets held a hearing on “From Wall Street to Main Street: The Future of How America Invests.”

• On June 25, the House Administration Committee held a hearing on “The Congressional Research Service and the Future of AI-Enabled Policy Analysis.”

• On June 25, the House Small Business Committee held a hearing on “From Startup to Scale: The Role of the SBA Office of Investment and Innovation in Powering America’s Small Businesses.”

• On June 25, the House Select Strategic Competition Between the United States and the Chinese Communist Party Committee held a hearing on “China’s Economic Espionage and Subnational Influence in the United States.”

This week

• On June 30, the House Judiciary Courts, Intellectual Property, Artificial Intelligence, and the Internet Subcommittee holds a hearing on “A Midlife Crisis? IP and the Internet After 40.”

• On June 30, the House Energy and Commerce Subcommittee on Communications and Technology holds a hearing on “Oversight of the National Telecommunications and Information Administration.

• On June 30, the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade holds a hearing on “American Global Competitiveness at 250: Legislative Proposals to Secure U.S. Technology Leadership.”

• On July 1, the House Administration Subcommittee on Modernization holds a hearing on “Modernizing Public Access to Legislative Data and Information.”

Upcoming

• On July 14, the House Small Business Committee holds a hearing on “AI on Main Street: How AI is Shaping the Future of Small Business”

Legislation

• The House passed on suspension the SBA Artificial Intelligence Utilization Act.

• The House Science, Space, and Technology Committee advanced a bipartisan artificial intelligence package including the AI-Ready Federal Data Guidelines Act, AI Security and Innovation Act, AI Flaw Reporting and Security Enhancement Act, CREATE AI Act, NSF AI Education Act, LIFT AI Act, READ AI Models Act, Protecting Consumers from Deceptive AI Act, Workforce for AI Trust Act, and Data Infrastructure Energy Measurement and Standards Act. (Press release)

• Sens. Chris Van Hollen (D-MD) and Lisa Murkowski (R-AK) and Rep. Bill Foster (D-IL) reintroduced the National Fab Lab Network Act to expand digital fabrication laboratories by creating a nonprofit organization to serve as a central funding source for Fab Labs across the country and to help foster public-private partnerships to create more Fab Labs. (Text)

• Sens. John Curtis (R-UT), Brian Schatz (D-HI), and Mark Warner (D-VA) introduced the AI Labeling Act to provide transparency on digital content generated by artificial intelligence (AI), helping ensure people know when they are viewing AI-made content or interacting with an AI chatbot by requiring clear labels and disclosures. (Text)

• Sens. Mark Kelly (D-AZ), Rick Scott (R-FL), and Roger Marshall (R-KD) introduced a bill to address the effects of artificial intelligence-enabled systems, including artificial intelligence chatbots, on older adults. (Text)

• Sens. Adam Schiff (D-CA) and John Curtis (R-UT) introduced the Safeguarding AI Features to Ensure Kids’ Informed Digital Safety (SAFE KIDS) Act to mandate the implementation of design guardrails and parental settings to prevent exposure to sexually explicit material, prohibit emotional manipulation or dependence, and require parental notification for scenarios involving imminent risk or potential self-harm; prohibit advertising to or targeting child users and the sale of children’s personal information without parental consent; and require AI chatbot providers to utilize age estimation technology in their products to determine whether a user is a child. (Text)

• Reps. Suhas Subramanyam (D-VA), Jay Obernolte (R-CA), and Valerie Foushee (D-NC) introduced the Data Infrastructure Energy Measurement and Standards Act to direct the National Institute of Standards and Technology (NIST) to create standardized energy measurements for data centers. (Press release)

• Rep. Nathaniel Moran (R-TX) introduced the AI Incident Reporting Act to create a federal framework requiring developers of advanced artificial intelligence models to report dangerous capabilities, security breaches, and safety incidents to the Secretary of Commerce. (Text)

• House Science, Space, and Technology Committee Ranking Member Zoe Lofgren (D-CA) introduced the Voluntary Consumer AI Disclosure Pilot Act. to direct the National Institute of Standards and Technology (NIST) to evaluate how and when private entities should disclose to users when they are interacting with an artificial intelligence system. (Press release)

• Reps. Valerie Foushee (D-NC) and Greg Casar (D-TX) introduced the AI Workforce Impact Study Act of 2026 to direct the Government Accountability Office (GAO) to conduct a comprehensive, retroactive study on the impact of artificial intelligence on the United States workforce since 2022. (Press release)

• Rep. Alexandria Ocasio-Cortez (D-NY) introduced the Artificial Intelligence (AI) Data Center Moratorium Act to create a temporary prohibition on the construction of new data centers and the expansion of existing data centers until Congress passes comprehensive legislation to address the economic, environmental, and safety impacts of artificial intelligence. (Press release)

• Select Committee on China Chair John Moolenaar (R-MI) and Rep. Josh Gottheimer (D-NJ) introduced the Cloud Security Act to allow cloud compute providers to voluntarily report suspected misuse of their services by customers associated with U.S. adversaries to the Department of Commerce. (Press release)

• House Education and Workforce Committee Chair Tim Walberg (R-MI) introduced the AI Workforce Assessment and Research Enhancement (AWARE) Act to require BLS to compile statistics on the usage of AI in the workforce. (Text)

• Reps. Sara Jacobs (D-CA), Steven Horsford (D-NV), and James Moylan (R-GU) introduced the AI-Related Job Impacts Clarity Act to require major companies and federal agencies to disclose AI-related layoffs to the Department of Labor in order to create a public report that tracks how artificial intelligence impacts the workforce. (Press release)

• Reps. James Walkinshaw (D-VA) and Don Bacon (R-NE) introduced the Cybersecurity Logging Enforcement and Accountability Reporting (CLEAR) Act to require the Department of Homeland Security (DHS) to report to Congress on the gaps preventing the Department from fully meeting federal cybersecurity event logging requirements. (Text)

Correspondence

• Reps. Bill Foster (D-IL), Brad Sherman (D-CA), Stephen Lynch (D-MA), Jim Himes (D-CT), Sean Casten (D-IL), Rashida Tlaib (D-MI), Brittany Pettersen (D-CO), and Sylvia Garcia (D-TX) sent a letter to Securities and Exchange Commission Chair Paul Atkins requesting information on what oversight, guidance, and investor protections are in place as brokerage firms begin allowing AI agents to make autonomous trades on behalf of retail investors, and whether the agency has evaluated the risks these systems pose to market integrity and consumer protection. (Letter)

• Congressional Monopoly Busters Caucus co-chairs Reps. Chris Deluzio (D-PA), Angie Craig (D-MN), Pramila Jayapal (D-WA), and Pat Ryan (D-NY) sent letters to the CEOs of Uber and Lyft following reports that the companies employed artificial intelligence driven surveillance pricing to charge passengers different prices for the same route. (Letter)

• Sen. Ted Budd (R-NC) sent a letter to National Cyber Director Sean Cairncross and White House Director of the Office of Science and Technology Policy Michael Kratsios requesting information about the Trump administration’s reported decision to block the Center for AI Standards and Innovation from making its AI model evaluations public. (Punchbowl)

Trump Administration

White House

• President Trump signed an executive order on Ushering in the Next Frontier of Quantum Innovation to direct the Assistant to the President for Science and Technology to update the National Quantum Strategy to support quantum-enabling technology and encourage partnerships with U.S. industry and establish a national effort to develop the first ever quantum computer powerful enough to initiate the era of quantum-enabled scientific discovery and accelerate quantum capabilities for commercial applications. (Executive order)(Fact sheet)

• President Trump also signed an executive order on Securing the Nation Against Advanced Cryptographic Attacks to direct the Office of Management and Budget (OMB) and the National Cyber Director to lead an accelerated, nationwide migration to post-quantum cryptography (PQC) and to direct the Department of Commerce, the National Security Agency, and the Department of Homeland Security to deliver clear, practical guidance to agencies on effectuating and accelerating PQC migration, among other actions. (Executive order)(Fact sheet)

Banking Regulators

• The Securities and Exchange Commission, Department of Treasury, Consumer Financial Protection Bureau, National Credit Union Administration, Commodity Futures Trading Commission, Federal Deposit Insurance Corporation, Federal Housing Finance Agency, Federal Reserve System published a final joint rule to establish data standards to promote interoperability of financial regulatory data across these agencies. The standards will later be considered for potential incorporation into data standards to be adopted for certain collections of information in separate rulemakings by the agencies or through other actions taken by the agencies. At the effective date, the joint rule will not change any reporting requirements without further action by the agencies. (Federal Register)

Defense Department

• The Pentagon released a Post-Quantum Cryptography Strategy to harden critical communications networks and information systems by fully implementing quantum-resistant algorithms and set deadlines and milestones for a quantum-safe transition. (Strategy)

The U.S.-China Economic and Security Review Commission

• The U.S.-China Economic and Security Review Commission published an AI Technology Stack Glossary to help Congress and the broader public better understand the complex technical concepts shaping today’s technology and national security landscape. (Press release)

National Science Foundation (NSF)

• As part of the National Quantum Virtual Laboratory design competition, NSF announced it selected five new teams to design experimental quantum technologies and collectively receive $20 million from NSF. (Press release)

Treasury Department

• Treasury released a read-out on the Office of the Financial Stability Oversight Council (FSOC) and the Artificial Intelligence Transformation Office (AITO) fourth and final roundtable of its AI Innovation Series. (Press release)

Noteworthy Quotes

ADMINISTRATION

White House

• The White House posted “Q is for quantum. Under President Trump’s leadership, quantum is making a massive leap, and America is at the forefront of these innovations and groundbreaking technologies.”

• The White House posted “Investing in American quantum leadership like never before. President Trump signs executive orders on quantum, supercharging a national effort in innovation in quantum technologies, ensuring national security and continuing American growth in a critical industry.”

CONGRESS

Quantum

• Sen. Todd Young (R-IN) posted “We need to ensure America has the talent and research capabilities required to lead the global tech competition and outcompete China. I commend POTUS for his executive order on quantum and commitment to U.S. leadership in quantum innovation.”

• Young also posted “Great to see this leadership from POTUS and the Administration on quantum. I’ve introduced a bill to accelerate quantum technology development and real-world applications that are vital to U.S. economic and national security.”

• Sen. Bill Hagerty (R-TN) posted “I applaud the Trump Administration’s leadership in advancing quantum innovation. Tennessee is at the forefront of this critical field through the Governor’s Tennessee Quantum Initiative, EPB Quantum, and a growing network of world-class research, higher education, and industry partners. Together, these efforts are advancing technologies that will strengthen America’s competitiveness and national security for generations to come.”

• Sen. Marsha Blackburn (R-TN) posted “POTUS never stops fighting for America’s quantum dominance! Congress should pass the National Quantum Initiative Reauthorization Act without delay.”

• Sen. Steve Daines (R-MT) posted “POTUS ’s initiatives will help ensure America remains the global leader in quantum and other critical emerging technologies. That’s why I’m leading the bipartisan DOE Quantum Leadership Act to strengthen our quantum workforce, accelerate research, and keep the United States at the forefront of innovation.”

• Rep. Jay Obernolte (R-CA) posted “Quantum technology will play a major role in the future of scientific research, cybersecurity, advanced manufacturing, and national security. This Executive Order recognizes the importance of winning the quantum race by keeping America at the forefront of innovation, supporting the workforce needed to build it, and ensuring these breakthroughs happen here in America.”

• Rep. Brad Finstad (R-MN) posted “My bill, the SBA Artificial Intelligence Utilization Act of 2026, just passed in the House. This bipartisan legislation ensures common sense congressional oversight into how artificial intelligence and machine learning tools are being used in the Small Business Administration.”

• Rep. Randy Weber (R-TX) posted “FY27 NDAA: Quantum Amendment Submitted. I’ve officially submitted an amendment to RulesReps to include my National Quantum Initiative Reauthorization Act in the FY27 NDAA. This CODIFIES the EOs on quantum signed by POTUS earlier this week.”

• Weber also posted “This work is already moving forward. Just recently, the National Quantum Initiative Reauthorization Act cleared housescience. The Quantum Movement Continues”

• Weber also posted “That is why my reauthorization bill continues the work of President Trump’s historical landmark legislation. It strengthens research, expands the American quantum workforce, supports domestic supply chains, and formally brings NASA into the effort.”

• Weber also posted “Quantum capabilities will shape the future of national security, military strength, and economic power. We cannot and will not allow China or any adversary to dominate this space.”

• Weber also posted “During POTUS first term in 2018, he signed the National Quantum Initiative Act into law. That laid the foundation for American leadership in this critical technology.”

• Weber also posted “Quantum posting this. Quantum posting that. Let’s talk about my National Quantum Initiative Reauthorization Act”

• Weber also posted “2018: President Trump signs the National Quantum Initiative Act 2026: My National Quantum Initiative Reauthorization Act clears housescience. Quantum posting continues.”

• Weber also posted “The Quantum Race is on. President Trump is taking action, and I am proud to lead the effort in Congress with the National Quantum Initiative Reauthorization Act to codify these EOs into law. When it comes to the quantum race, second place is NOT an option!”

• House Science Committee posted “The race for quantum leadership is underway, and America cannot afford to fall behind. President Trump’s Executive Orders will accelerate quantum innovation, bolster our national security, and help position the United States to lead the next frontier of scientific and technological advancement.”

• Rep. Andy Ogles (R-TN) posted “President Trump just signed an Executive Order directing robust quantum innovation and manufacturing right here in the United States. As Chairman of the House Homeland Cyber Subcommittee, I know quantum computing will supercharge America’s cyber defense industrial base. Quantum is the future, and Republicans will make sure America leads it.”

• Rep. Troy Downing (R-MT) posted “Quantum technology will shape the future of our economy and national security. I support POTUS efforts to keep America leading in quantum innovation and ensure we stay ahead of our adversaries in the technologies that will define the next generation. Montana, and our emerging quantum industry, have a role to play in that future.”

• Rep. Pat Harrigan (R-NC) posted “The Trump Administration is taking the right approach by directing federal agencies to better protect America’s quantum research and counter foreign espionage. Executive orders are a good start, but policies this important should not disappear with the next administration. My office is exploring ways to codify these protections into law so safeguarding America’s quantum advantage becomes a permanent national security priority.”

• Harrigan also posted “Imagine a thief who can’t pick your lock today, but takes a photo of it, walks away, and comes back in five years with better tools. That is exactly what China is doing with American data right now, collecting everything they can get their hands on and waiting for quantum computing to catch up so they can crack it all at once. POTUS signed an executive order this week to get ahead of that threat, and I am introducing legislation to put the full force of Congress behind it. We are talking about reshoring quantum supply chains, transitioning federal systems to encryption that quantum computers cannot break, and making sure America defines what the next era of computing looks like.”

Data Centers

• House Energy and Commerce Chair Frank Pallone (D-NJ) posted “Data centers are making electric bills unaffordable and threatening the environment in our communities. We need a nationwide moratorium on new data center construction until serious guardrails are put in place.”

• Energy & Commerce Democrats posted “BREAKING: Top E&C Democrat FrankPallone calls for a national moratorium on AI data centers.”

• On Pallone’s support for a data center moratorium, Rep. Scott Peters (D-CA) said, “It was a surprise to me. The data centers are important for us as a nation to compete with China.” (Punchbowl)

• On Pallone’s position, Sen. Bernie Sanders (I-VT) said, “We’re gaining momentum! I’m delighted that Frank has come to this conclusion.” (Punchbowl)

• Rep. Jim McGovern (D-MA) posted “AI data centers are using tons of electricity & water, driving up utility costs while workers get left behind & Big Tech reaps record profits. Proud to join RepAOC & SenSanders in calling for a federal AI data center moratorium until Congress sets real standards & guardrails to protect Americans.”

• Sen. Cynthia Lummis (R-WY) posted “POTUS has made it clear: America must lead the world in AI. Data centers are how we get there, but with massive power demands come real responsibilities. Smart regulation means protecting ratepayers and protecting the grid. I’ve introduced legislation to do just that.”

• Rep. Valerie Foushee (D-NC) posted “This is part of my continued efforts to pass AI legislation that puts hardworking Americans over Big Tech. I will continue to explore routes to regulate AI and data centers in order to protect our communities. Read more about the Data Infrastructure Energy Measurement and Standards Act.”

• Foushee also posted “Data centers and AI are placing unprecedented strain on our electric grid, water resources, and more. Congress needs to establish clear guardrails to protect our residents’ utility bills and local infrastructure. I’m proud to co-lead the Data Infrastructure Energy Measurement and Standards Act with RepSuhas to ensure taxpayers are not left footing the bill for unchecked infrastructure costs, and planning decisions are guided by facts over industry estimates.”

• Energy and Commerce Committee posted “Protecting Americans’ Pocketbooks from Rising Energy Costs. RepGabeEvans’ Ratepayer Protection Act helps to ensure that tech companies, and not hardworking families are paying for the costs of data centers. We can and will win the AI race while keeping energy affordable for all Americans.”

• In remarks on CNN’s One Thing podcast, Sen. Adam Schiff (D-CA) said, “There’s certainly profound challenges, both with the data centers, and I’ve introduced a bill to ensure that these large data centers bring their own energy, that they don’t socialize the costs of improvements that need to be made to the grid or regional infrastructure or transformers or other technologies. That they build in an excess capacity, so they can actually put power into the grid during surge times. This is obviously just one facet of the problem, you mentioned another, that is the environmental impacts… There are some new technologies that are mitigating the need for water, which is, I think, encouraging, but the broader concerns are still dominating. And in addition to the data center issue, you have the fact that these models are so advanced now they have far outpaced our cyber defenses. And you have the additional growing impact on the nature of work. I’m most particularly concerned about that impact… I think that AI and the transformation it will bring, presents both a danger and an opportunity, and the opportunity is to think anew about how our society works and how we make sure that people who are working and trying are able to enjoy a good quality of life. And that there is good and dignified work for people.” (Press release)

• Rep. Kim Schrier (R-FL) posted “Hardworking families in my district and across the Northwest are being hit with skyrocketing energy prices. We need to invest in clean and affordable energy, eliminate red tape, and make sure Americans aren’t stuck footing the bill of emerging AI data centers.”

• Sen. John Cornyn (R-TX) posted “Chevron struck a 20-year agreement to sell electricity to Microsoft, which plans to build what could become one of the country’s largest AI data centers in West Texas”

Legislation

• Rep. Laura Friedman (D-CA) posted “I represent a community of creators and artists in my district, so I understand exactly how important it is to have control over your own voice and image. With the advancement of AI, we need new laws for new realities. I’m proud to be an early champion of the NO FAKES Act, a bipartisan and bicameral bill that will give Americans a powerful tool to protect themselves from scammers and bad actors using AI.”

• Rep. Don Beyer (D-VA) posted “Responsible AI governance means being proactive, and that’s why my bill with RepDeborahRoss builds on cybersecurity best practices to help developers respond to and fix vulnerabilities. I’m thrilled it advanced out of sciencedems earlier this week!”

• Sen. Richard Blumenthal (D-CT) posted “AI safety requires Congressional action—as many seem to believe, but avoid supporting specifics. The Hawley-Blumenthal framework provides a good beginning.”

• Rep. Jimmy Panetta (D-CA) posted “The ongoing innovations with artificial intelligence are reshaping our economy and workforce in California’s 19th Congressional District. I’m proud to support RepLiccardo’s SKILL Act to provide employers a tax credit for investments in apprenticeships and workforce development programs at our local community colleges and public universities. I will continue to work in Congress to ensure that working families are not left behind by AI advancements.”

• Rep. Brad Finstad (R-MN) posted “ICYMI: My bill, the SBA Artificial Intelligence Utilization Act, PASSED in the U.S. House! Thank you SteveScalise and GOPMajorityWhip for helping Team Finstad celebrate its passage.”

• Rep. Gabe Amo (D-RI) posted “Our AI reality isn’t sci-fi in a distant future — it’s here now & it’s here to stay. That’s why I co-lead the LIFT AI Act: to empower students & educators to become responsible AI users. When our kids & teachers are literate in next gen tools, they can use tech for good.”

• Rep. Steven Horsford (D-NV) posted “This week, I introduced the AI-Related Job Impacts Clarity Act. This legislation would bring transparency and accountability to AI-driven layoffs as artificial intelligence reshapes the American workforce at an unprecedented pace. AI has the potential to uplift workers, but right now, too many companies are using it as coverup to push workers out.”

• Rep. Nathaniel Moran (R-TX) posted “The AI Incident Reporting Act creates a framework for the private sector to flag AI systems capable of evading human oversight, enabling biological warfare, or threatening critical infrastructure. Companies notify Commerce within 7 days — Commerce notifies Congress within 48 hours for threats to public safety.”

• Sen. Dick Durbin (D-IL) posted “This is a BIG step forward. AI companies agree that it’s time to pass legislation to protect women and girls from AI-generated deepfake nudes. Time to pass the DEFIANCE Act and open the courtroom for survivors to sue.”

• Rep. Abe Hamadeh (R-AZ) posted “Congressman Hamadeh’s working hard to keep the A-10 Warthog flying! FIVE key provisions from his BRRRRT Act are now locked in the House NDAA: extending the Warthog’s service life, sustaining training through 2030, preserving combat-proven lessons, exploring modernization & AI upgrades, & protecting Arizona’s critical role. The Congressman knows what our troops know in their bones, that thunderous BRRRRT is the sweetest sound a warrior under fire will ever hear. We must fully fund the Warthog now, or lose proven American combat power forever.”

• Rep. Valerie Foushee (D-NC) posted “We are proud to have the support of EncodeAction and FLI_org as we push to pass this legislation that will help protect hardworking Americans.”

• Foushee also posted ”As I outlined in my report on AI’s impact on American jobs, which found that over 54,000 jobs were lost in 2025 with AI cited as a factor, Congress must do better to understand how AI is affecting workers. I am introducing the AI Workforce Study Act of 2026 with RepCasar to direct the USGAO to study the number of job losses due to AI, limitations of existing data collection methods and more.”

• Energy and Commerce Committee posted “We must be able to effectively compete against the Chinese Communist Party. In today’s Energy markup, RepPfluger spoke on how the Ratepayer Protection Act ensures we can protect American families from higher prices and win the global race for AI.”

• Energy and Commerce Committee posted “Hardworking Americans shouldn’t foot the bill for AI development that large load customers are responsible for. RepGabeEvans’ Ratepayer Protection Act ensures families and small businesses are protected from higher electricity costs.”

• Energy and Commerce Committee posted “The Ratepayer Protection Act would ensure Americans aren’t paying more for electricity because AI infrastructure is being built. We can protect our communities and win the AI race.”

• Sen. Marsha Blackburn (R-TN) posted “Had a great meeting with Chattanooga MayorTimKelly to discuss our work to ensure East Tennessee leads the nation in quantum technologies. In the Senate, I will continue my efforts to reauthorize the National Quantum Initiative Act to safeguard our economic & national security.”

• Sen. Adam Schiff (D-CA) posted “For a young and impressionable mind, an AI chatbot represents a dangerous risk – one that we’ve already seen end in tragedy. Today I’m introducing new bipartisan legislation with SenJohnCurtis to put in place comprehensive

• Sen. Ed Markey (D-MA) posted “Workers should be managed by people, not a machine. I’m proud to partner with the AFLCIO on the No Robot Bosses Act and Stop Spying Bosses Act to stop AI management, rein in workplace surveillance, and put workers back in control of their autonomy, privacy, and rights.”

• Markey also posted “Amazon received $17.5 billion in tax subsidies last year. They made $78 billion in profit. On Prime Day, don’t buy Amazon’s excuse that they can’t pay workers more. Let’s pass my bipartisan Warehouse Worker Protection Act, ban worker surveillance & stop AI from being your boss.”

• Markey also posted “Bias in AI can cost people jobs. When AI discriminates, real people pay the price. That’s why I introduced the AI Civil Rights Act—to mitigate bias, require transparency and accountability, and protect opportunity for everyone.”

• Rep. Andy Ogles (R-TN) posted “Cybercriminals are using AI to create complex phishing scams against Americans. Criminals are getting smarter; therefore, our cyber defenses must get smarter too. The Senate must pass my bill creating an interagency cyber task force so we can stop these criminals at the source.”

• Sen. Bernie Sanders (I-VT) posted “We can no longer sit back and allow oligarchs decide the future of AI with zero input from the American people. That’s why I introduced the American AI Sovereign Wealth Fund Act — to give the public a direct ownership stake.”

• Rep. Tim Walberg (R-MI) posted “As AI continues to reshape workplaces across our economy, we must have information about its impact. Today, I introduced the AWARE Act to ensure we have the data necessary to support our workforce, strengthen training programs, and ensure that the U.S. remains at the forefront of technological innovation.”

• Rep. María Elvira Salazar (R-FL) posted “Huge step forward. Last week the NO FAKES Act passed the Senate Judiciary Committee, unanimously. This bill is simple: your image, your voice, and your likeness belong to you. No one should be able to use AI to steal your identity, clone your voice, or make it appear you said or did something you never did. I am proud to lead this bipartisan effort in the House alongside RepDean and to work with senators MarshaBlackburn and ChrisCoons to get this bill signed into law. Americans deserve the peace of mind of knowing they have meaningful protections in the age of AI.”

• House Committee on Education & Workforce posted “AI is moving fast. Understanding its impact on workers shouldn’t lag behind. Chairman RepWalberg ‘s AWARE Act (H.R. 9381) helps provide the data needed to support workers, inform policy, and keep America competitive.”

• House Foreign Affairs Committee Majority posted “Bad actors are smuggling billions in American advanced AI chips to China. Now, U.S. businesses are calling it out and backing the Chip Security Act (CSA) because this bill doesn’t hold America back, it makes us more competitive on the world stage. This bill closes the loopholes, secures our exports, and keeps China from winning the AI arms race. It’s time to pass the CSA.”

House Science Committee Markup

• Rep. Valerie Foushee (D-NC) posted “AI policy making in Congress should be centered around properly researching and combatting the negative impacts of this technology. I’m proud that ScienceDems passed the following bills and amendments I presented at yesterday’s markup to ensure that we are putting working families ahead of large corporations.”

• House Science Committee posted “Yesterday, our Full Committee approved a bipartisan package of ten AI bills to help strengthen America’s leadership in artificial intelligence. These bills support innovation, expand AI education and workforce development, enhance national security, and help keep the United States at the forefront of this critical technology.”

• House Science Committee posted “Today, our Full Committee advanced a bipartisan package of artificial intelligence legislation, including ten bills focused on strengthening America’s leadership in AI through investments in education, workforce development, research, innovation, and national security. We look forward to continuing to move these bills through the legislative process.”

• House Science Committee posted “America’s leadership in AI depends on secure, trustworthy, and resilient AI systems. Today, our Full Committee advanced a bipartisan package of AI legislation focused on security, accountability, workforce development, and research.”

Miscellaneous

• In remarks at the Center for a New American Security, Rep. Jason Crow (D-CO) said, “AI is going to be a component—and has to be a component—of our strategy in our military going forward. We are not having the level of conversations, though, on some of the risks that we need to have, right? The use of AI and targeting being a good example…I’m somebody that believes that there always must be a human involved in the kill chain, and that we should not be making decisions to take lives based on an AI algorithm. We need to be able to make those decisions as humans, and those are discussions that we’re going to have to have.” (Press release)

• Rep. Suzan DelBene (D-WA) posted “Patients & doctors agree. The Trump administration’s AI experiment is damaging Medicare, delaying & denying care for patients, & creating more work for providers.”

• Rep. Sarah Elfreth (D-MD) posted “It’s never too early to be civically engaged, and the incredible Howard County high schoolers interning with my friend katiefryhester are perfect examples of that! I sat down with these students to hear about everything they’re working on, including AI regulation policy, and how I can support that work in Washington. There’s no one better to hear from on challenges of the future than the next generation leaders.”

• Rep. Lori Trahan (D-MA) posted “Now the Trump administration is deciding company by company who gets access to the newest AI model. No law. No process. No oversight. Just appointees in Washington deciding who’s in and who’s out. This haphazard approach is bad for safety, national security, and American innovation. Congress can’t keep sitting on the sidelines of the AI debate. We need a real national strategy. Agencies staffed with technical experts, uniform guardrails for frontier models, and a lawful process for emergency action that answers to judicial review.”

• Rep. Riley Moore (R-WV) posted “The nuclear weapons of the last great arms race were pointed at our adversaries. We cannot allow the new nuclear weapon of AI to be pointed at the American worker.”

• House Homeland GOP posted “Last month, Anthropic provided the Committee with a demonstration of its powerful AI model, Mythos. On Punchbowl’s Fly Out Day, Chairman RepGarbarino discusses his takeaways and why American cyber defenders need these tools to keep pace: ‘We can’t continue to defend at human speed when they’re going to be using computer speed to attack us.’”

• Rep. Andrew Garbarino (R-NY) posted “AI is already transforming the way we work, defend our country, and protect critical infrastructure. We must ensure America leads in innovation while putting the right safeguards in place. Thanks PunchbowlNews for the great conversation.”

• Energy and Commerce Committee posted “We can lead the world in AI and protect working families at the same time. The Ratepayer Protection Act, advanced yesterday by the Energy Subcommittee, makes sure that the cost for new electricity demand is paid for by Big Tech, not American families.”

• Rep. Sanford Bishop (D-GA) posted “This week, I met with members of the Georgia State Council of Machinists. We discussed artificial intelligence (AI) and its possible effect on our workforce. As Congress tackles AI policy, I will continue to listen to my constituents and bring their perspectives to the debate and acknowledge how intricately AI affects our lives every day, from work and art to personal privacy and national security.”

• Sen. John Curtis (R-UT) posted “As AI-generated content becomes more realistic, people deserve to know whether what they’re seeing was created by a human or generated by AI. By requiring disclosures identifying AI-generated digital content, our bill will help protect users and discourage bad actors from using AI to deceive the public.”

• Curtis also posted “Parents deserve confidence that AI tools are not exposing their children to harmful content, fostering emotional dependence, or exploiting their personal information. Our commonsense bill would better protect children online while preserving American leadership in innovation.”

• Rep. Morgan Griffith (R-VA) posted “Data shows that AI chatbots overwhelmingly tend to echo leftwing viewpoints. While AI is a tool that can in some ways support Congress, overreliance on the technology poses issues.”

• Rep. Nathaniel Moran (R-TX) posted “This bill addresses a major issue: national security, public safety, and the need for the private sector to carry a role of responsibility in making sure these AI systems don’t work around human involvement and against human interest.”

• Moran also posted “Congress needs transparency with AI. When it comes to national security and public safety implications, information from the private sector about what these models are doing and what they’re capable of is imperative to protecting Americans.”

• Rep. Joe Morelle (D-NY) posted “As AI continues to reshape our world, Congress must be prepared to harness its benefits while safeguarding transparency, accountability, and public trust. Join HouseAdm Dems as we examine how AI could support congressional research and policy analysis in the years ahead”

• Rep. Anna Paulina Luna (R-FL) posted “While we’re at it let’s use AI to audit Congress because clearly there’s a lot of corruption here”

• Rep. Suzan DelBene (D-WA) posted “The Trump administration launched a harmful program that uses AI to delay & deny care for seniors. They claim the model is supposed to cut down on ‘waste,’ but it’s hurting patients. That’s why I’m pressing for transparency & answers on the real impacts of this program.”

• Sen. Mark Kelly (D-AZ) posted “There’s no question AI is changing our economy, our military, and our everyday life. I’m focused on making sure AI works for everyone, not just big tech companies.”

• House Homeland GOP posted “As AI accelerates both offensive and defensive cyber operations, federal agencies and critical infrastructure operators must responsibly leverage advanced U.S. models to protect our networks. ‘China is just months, if not now weeks, away from achieving frontier AI capabilities comparable to those of the United States.’ RepGarbarino”

• Energy and Commerce Committee posted “Chairman RepGuthrie makes the choice clear: it must be America that wins the AI race, not the Chinese Communist Party. HouseCommerce is working to counter foreign misinformation, secure American AI dominance, and protect hardworking families from rising electricity prices.”

• Rep. Angie Craig (D-MN) posted “THIS JUST IN: A recent ConsumerReports investigation revealed that rideshare giants Uber and Lyft are using AI to scrape your data and charge different prices for the same ride. This is unacceptable. Minnesotans rely on rideshare services to get to work, visit their loved ones and purchase groceries. That’s why I’m leading my MonopolyBusters colleagues to demand answers.”

• Rep. Laurel Lee (R-FL) posted “The future is bright for the greatest country on Earth! As we approach our nation’s 250th birthday, America is leading the world in AI, and Congress is helping make it happen. I am proud to have served on the Congressional AI Task Force, which helped to keep our nation at the forefront of innovation, security, and technological superiority for the next 250 years.”

• Rep. Zach Nunn (R-IA) posted “Thank you GooglePubPolicy for endorsing our bipartisan AI Plan Act. As China, Russia, Iran, and North Korea invest heavily in AI, America needs a strategy to stay ahead of emerging threats, protect sensitive data, and safeguard our national and economic security.”

• Rep. Scott Perry (R-PA) posted “Under a strict agreement with the Netherlands, the sale by ASML of Extreme Ultra Violet (EUV) light tech to China is strictly banned. Why, then, is it turning up in China - with which we’re locked in an ‘arms race’ to develop powerful AI systems to strengthen military capability and spur economic growth. America is owed answers.”

• Rep. Brett Guthrie (R-KY) posted “American values must win the race for AI over the totalitarian values of the Chinese Communist Party. HouseCommerce is leading the charge to counter potential misinformation campaigns from foreign actors and support American dominance while also protecting hardworking families from higher electricity prices.”

• Rep. Greg Casar (D-TX) posted “AI companies give Trump’s Republican Party millions of dollars, then Republicans block all AI regulations and downplay the risks. We need to tax AI to pay for a jobs program to keep Americans employed.”

• Rep. Seth Magaziner (D-RI) posted “At this morning’s ProvChamber Congressional Dialogue Breakfast, I joined my colleagues in the Delegation to discuss the need to end the unnecessary tariffs and wars, support career & tech education, and be proactive in meeting the challenges of the AI age.”

• Rep. Josh Gottheimer (D-NJ) posted “It’s clear that we need a mandatory review process for advanced AI models before they reach the public to ensure they are safe and secure. We’re in a Cold War with China on AI. We have to win — but we have to win the right way.”

• Rep. Ted Lieu (D-CA) posted “The trump admin has let the AI industry run wild. We need to ensure that advanced AI models can’t harm Americans.”

• Rep. Lori Trahan (D-MA) posted “Congress did nothing for years while social media corporations hurt our children. We can’t make the same mistake with AI. We need a bipartisan national framework that puts Americans’ safety and livelihoods first.”

• On AI agents, Rep. Zach Nunn (R-IA) said, “It’s incumbent upon us to lead from the front and develop these technologies in a safe and responsible way.” (Punchbowl)

What I’m Reading This Week

• Anthropic Customer Sues US Over Losing Access to Fable AI Model, Bloomberg.

• U.S. Presses Meta to Agree to A.I. Reviews as Security Concerns Rise, Tripp Mickle, Eli Tan and Sheera Frenkel, New York Times.

• From PGP to Mythos: a brief history of export controls that didn’t stop anyone, Lorenzo Franceschi-Bicchierai, TechCrunch.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

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Congress is zeroing in on the real-world impacts of AI, with hearings this week on K–12 education, social media harms, capital markets, small business innovation, and AI-enabled policy analysis, alongside continued scrutiny of China and data centers. Lawmakers also continue to roll out a wave of bills that would shape AI governance across deepfakes, workplace surveillance, grid reliability, biological data, and terrorism risk, while pressing the administration on export controls, autonomous weapons, CFIUS reviews, and cybersecurity funding.

Senate Commerce Committee Chair Ted Cruz (R-TX) reportedly requested committee Republicans submit their AI priorities for a potential vote on a broad AI package. Meanwhile, the White House is reportedly interested in attaching state preemption language to kids’ safety bills moving through the committee, though the breadth of that preemption is yet to be seen.

Read more below

Congress

Hearings

Last week

• On June 16, the Senate Health, Education, Labor and Pensions Education and the American Family Subcommittee held a hearing on “The Future of K-12 Education in the Age of Artificial Intelligence.”

• On June 17, the Senate Foreign Relations Committee held a markup of bills including the U.S. Technology Procurement and Access to Trusted Hardware (U.S. Tech PATH) Act.

This week

• On June 23, the Senate Judiciary Committee will hold a hearing titled “Examining Tech Industry Practices and the Implications for Users and Families: Is This Social Media’s Big Tobacco Moment?” to consider issues including AI safety.

• On June 25, the House Financial Services Subcommittee on Capital Markets holds a hearing on “From Wall Street to Main Street: The Future of How America Invests.”

• On June 25, the House Administration Committee holds a hearing on “The Congressional Research Service and the Future of AI-Enabled Policy Analysis.”

• On June 25, the House Small Business Committee holds a hearing on “From Startup to Scale: The Role of the SBA Office of Investment and Innovation in Powering America’s Small Businesses.”

• On June 25, the House Select Strategic Competition Between the United States and the Chinese Communist Party Committee holds a hearing on “China’s Economic Espionage and Subnational Influence in the United States.”

Legislation

• Senate Judiciary Committee passed the Nurture Originals, Foster Art, and Keep Entertainment Safe (NO FAKES) Act to protect the voice and visual likenesses of individuals and creators from the proliferation of digital replicas created without their consent.

• Sens. Ed Markey (D-MA), and Brian Schatz (D-HI) and Rep. Suzanne Bonamici (D-OR) introduced the No Robot Bosses Act to put safeguards on the use of automated decision systems to make work-related decision decisions. (Press release)

• Sens. Ed Markey (D-MA), Brian Schatz (D-HI), and Cory Booker (D-NJ) and Rep. Chris Deluzio (D-PA) introduced the Stop Spying Bosses Act to limit employer collection and use of employee data to what is strictly necessary for legitimate purposes; prohibit employers from using employee data to surveil workers’ union activity, political or religious views, immigration status, or off-duty conduct; require employers to disclose to workers what data is being collected, how it is being used, and who has access to it; give workers the right to access and correct their own data, and to review the data used in work-related decisions made about them; and prohibit employers from selling or transferring employee data to third parties. (Press release)

• Sens. Kevin Cramer (R-ND) and Andy Kim (D-NJ) introduced the Bureau of Industry and Security License Administration Enhancement Act to require “is-informed letters” to go through the standard interagency process, along with terminating any letter within 60 days unless BIS publicly publishes the underlying restriction; require publication detailing how licensing officers apply the “presumption of denial” standard within 90 days of enactment, with a pre-publication submission to Congress, and require review by Commerce of a 2025 BIS rule cracking down on AI-chip smuggling via foreign foundries, with a report to Congress on its findings within 120 days. The House companion bill is led by Rep. Michael McCaul (R-TX) and passed out of the House Foreign Affairs Committee. (Text)

• Reps. Kathy Castor (D-FL) and Gabe Evans (R-CO) introduced the Ratepayer Protection Act to require state utility regulators to establish rules to ensure that community members do not pay for the costs of building new power generation, transmission lines, and other upgrades to serve large-load customers, such as data centers. (Press release)

• Reps. Kevin Mullin (D-CA) and Diana Harshbarger (R-TN) introduced the Affordable Innovation for the Grid Act to direct the Secretary of Energy to assess how Artificial Intelligence and High-Performance Computing technologies can strengthen the capacity, reliability, and efficiency of America’s bulk-power system. (Text)

• Sens. Brian Schatz (D-HI) and Marsha Blackburn (R-TN) and Reps. Jennifer McClellan (D-Va.) and Nathaniel Moran (R-Texas) introduced the Curbing Online Non-Consensual Sexually Explicit Nudity Transfers (CONSENT) Act to curb the sending of sexually explicit images online, also known as cyberflashing, by creating a federal private right of action for victims who receive such images and imposing civil penalties for individuals who send them. (Text)

• Sens. Todd Young (R-IN), Alex Padilla (D-CA), Mike Rounds (R-SD), and Andy Kim (D-NJ) and Reps. Matt Van Epps (R-TN) and Jake Auchincloss (D-MA) introduced the Web of Biological Data Act to create a comprehensive, national biological database accessible to American researchers and innovators. (Text)

• Sens. Rick Scott (R-FL) and Cynthia Lummis (R-WY) and Rep. August Pfluger (R-TX) introduced the Generative AI Terrorism Risk Assessment Act to direct the U.S. Department of Homeland Security (DHS) to conduct annual threat assessments of designated terrorist organizations who are using artificial intelligence (AI) to harm Americans and plan potential attacks. (Text)

• Sen. Bernie Sanders (I-VT) introduced the American AI Sovereign Wealth Fund Act to give the public a 50% ownership in the largest U.S. artificial intelligence companies. (Text)

Correspondence

• Reps. Sam Liccardo (D-CA), Jay Obernolte (R-CA), Ted Lieu (D-CA), and Scott Franklin (R-FL) sent a letter to the Commerce Secretary Howard Lutnick requesting information regarding the June 12 decision to impose export controls on Anthropic’s Claude Mythos 5 and Claude Fable 5 artificial intelligence models. (Letter)

• Sen. Ruben Gallego (D-AZ) sent a letter to the Department of Defense (DOD) requesting information on how it will protect U.S. servicemembers, allied militaries, and host nation civilians under any rapid revision to the 3000.09 Directive, the core policy governing autonomy in weapon systems. (Letter)

• Sen. Tom Cotton (R-AR) sent a letter to Treasury Secretary Scott Bessent requesting the Committee on Foreign Investment in the United States (CFIUS) to investigate Chinese investment in Airwallex, a cross-border payment platform that processes highly sensitive data for major American companies. (Letter)

• Sen. Mark Warner (D-VA) sent a letter to Cybersecurity and Infrastructure Security Agency’s Acting Director Nick Andersen on the Trump administration’s reduction of CISA staff and the drastic cuts to CISA’s proposed fiscal year 2027 budget. (Letter)

Noteworthy Quotes

CONGRESS

Anthropic Order

• Sen. Angus King (I-ME) said, “What they did was pretty extreme, and I’d want to see what the basis was, as opposed to all the other issues that are swirling around in cybersecurity,” he said. “I’m a little skeptical because of their otherwise announced antipathy to this company.” (Cyberscoop)

• House Homeland Security Committee Chair Andrew Garbarino (R-NY) said, “The administration is right to treat advanced AI cyber capabilities as a national security issue, especially when foreign adversaries and cybercriminals are actively looking for ways to weaponize these tools. At the same time, we need to make sure our response does not unintentionally disadvantage American companies, allied partners, or critical infrastructure defenders who need access to the best secure tools available in order to protect our networks here at home.” (Cyberscoop)

• House Homeland Security Committee Ranking Member Bennie Thompson (D-MS) said, “AI regulations should rely on standards and procedures that provide confidence to the public that decisions are based on the evidence and not on politics,” he said. “Instead, the Trump administration has adopted an ad hoc approach where decisions are made by political appointees in the White House rather than experts and where companies are left guessing on how to comply.” (Cyberscoop)

• Sen. Mike Rounds (R-SD) said, “I have not had the opportunity to get a brief specifically as to the logic, the reasoning behind it, and so forth. So I’m going to withhold judgment until I get an opportunity to get the rest of the story, so to speak.” (Cyberscoop)

U.S. Equity Stakes in AI Companies

• Sen. Cynthia Lummis (R-WY) said the proposal is a “head-scratcher” and “It starts out with my nose wrinkled.” (Semafor)

• Sen. John Kennedy (R-LA) said of AI leaders, “I don’t mean disrespect when I say this — I’m proud of them, as American entrepreneurs — but I trust them like I trust the rest-stop bathroom.” (Semafor)

Miscellaneous

• On China’s potential efforts to influence American public opinion against data center construction, Sen. Tom Cotton (R-AR) said, “We can’t allow any effort by foreign adversaries to extort these fears and undermine our technological development.” (Punchbowl)

• On voter sentiment on data centers, Sen. Josh Hawley (R-MO) said, “When you listen to people who show up at zoning meetings, city council meetings, when they talk to me, they’re saying something very consistent, which is they’re really worried about their electricity rates, they’re worried about their utility bills.” (Punchbowl)

• Sen. Chris Murphy (D-CT) said, “The AI companies have a veneer of social benefit, but an underlying motivation of addiction and profit expansion... One observer of the major tech companies said these companies would burn everything to the ground as long as they’re making a profit… We require a teacher to go through licensing before they are in a classroom. We require most complicated technologies to go through an approval process before they are handed out to the American public. What do you think about an idea to make sure that AI technology that is being handed to a teacher go through some expert approval process first to make sure that its actual function is to supplement the teacher’s instruction, rather than its primary function is to try to spin you into higher usage and higher pay rates for the company that owns it?” (Press release)

• In a commencement address to UCLA graduates, Rep. Brad Sherman (D-CA) said, “Our species is devoting trillions of dollars to making artificial intelligence more powerful. We’re devoting basically nothing to making sure that it is controllable. Now, Elon Musk and Steve Wozniak signed a letter three years ago saying that since artificial intelligence poses an existential threat to all humankind, we should take a six-month break in the research. That pause lasted six minutes. Those of you with an understanding of political science, an understanding of money and power in human societies, will know that it is unlikely that we will take a pause in artificial intelligence research. We will be told if we don’t do it, China will. Now, there are those who say that a computer is no threat because it’s in a box without the ability to manipulate the world outside. But rest assured, there are those of our species who would sell humanity to Beelzebub in return for a good stock tip. Now, I’ve recently introduced the most important legislation that I’ll ever introduce: to fund research to build what I call the small box on top of the big box. The big box is artificial intelligence. The small box would monitor for and prevent self-awareness, ambition, survival instinct, and self-direction.” (Press release)

• Rep. Mike Levin (D-CA) posted “The Trump DOJ is now arguing in federal court that Elon Musk’s AI company should be allowed to run dozens of unpermitted gas turbines polluting a Black community in Mississippi. They also argued the federal government should have the power to shut down citizen lawsuits like this one entirely. This is the Justice Department intervening on behalf of a polluter, against the people breathing the air it’s polluting. That’s not protecting national security. That’s protecting Elon Musk. Elon Musk just became a trillionaire. The community next to his data center is breathing smog-forming nitrogen oxide and formaldehyde.”

• Rep. Sam Liccardo (D-CA) posted “The Commerce Department imposed licensing requirements that effectively shut down Anthropic’s newest AI models without publicly explaining why. Congress, developers, researchers, and the public deserve to know what criteria this Administration uses to determine what AI we can access–or not. Becoming a gatekeeper for the world’s most powerful technology comes with a responsibility of transparency. I led a bipartisan group to demand answers.”

• Energy and Commerce Committee posted “ICYMI: Winning the race for AI dominance should not come at the expense of families and small businesses. RepGabeEvans’ Ratepayer Protection Act ensures companies foot the bill for their own infrastructure upgrades, not hardworking Americans.”

• Rep. Jay Obernolte (R-CA) posted “I enjoyed speaking with Congressional Gold Medal award winners about the opportunities artificial intelligence can create for the next generation. AI is a tool young people can learn to use to solve problems, strengthen their skills, increase their productivity, and improve their lives. As this technology continues to develop, it is important that we equip our youth with the skills they will need to succeed in the AI-powered workplace of tomorrow.”

• Rep. Riley Moore (R-WV) posted “Proud to stand with the Teamsters in defense of the American worker as we face the coming challenges AI poses to our workforce. Thank you, TeamsterSOB, for your invitation to speak at the Teamsters 31st International Convention in Las Vegas yesterday!”

• Rep. Greg Landsman (D-OH) posted The Trump Administration’s WISeR model uses AI technology to delay and deny critical care for seniors on Medicare.How we’re fighting to stop this dangerous program.”

• Rep. Harriet Hageman (R-WV) posted “Democrats colluded with Big Tech to silence conservatives. AI makes the leftist censorship regime infinitely more powerful and dangerous. My Preventing AI Censorship Act holds any federal employee personally accountable for using AI to silence, track, or manipulate Americans.”

• Sen. Mark Kelly (D-AZ) posted “Before we can get AI policy right, we need the facts. My AI DATA Act will let workers and businesses know how AI is changing the economy and their jobs.”

• Sen. Bernie Sanders (I-VT) posted “The future of AI must not be decided behind closed doors by billionaires seeking to maximize their power and profit. It should be decided by the American people. That’s why I’m introducing the American AI Sovereign Wealth Fund Act.”

• Sen. Andy Kim (D-NJ) posted “The possibilities of quantum technologies are not abstract or theoretical – they are right in front of us, and without greater financing flexibility, we risk falling behind global competitors like China. The time to invest in these technologies and bolster American quantum leadership is now. We must elevate the importance of harnessing all that quantum has to offer – this legislation is one step in doing so.”

• Sen. Chris Coons (D-DE) posted “HUGE news: my bill with MarshaBlackburn to protect Americans from AI deepfakes, the NO FAKES Act, just passed unanimously out of the Senate Judiciary Committee. One step closer to becoming law and protecting the voice and likeness of all Americans. Let’s get this done.”

• Sen. Thom Tillis (R-NC) posted “Proud to co-sponsor the NO FAKES Act and see it advance from the Senate Judiciary Committee with strong bipartisan support. This bill will help protect Americans from the unauthorized use of their voice or visual likeness for use in AI. I will continue to work with my colleagues to get this bill signed into law.”

• Rep. Diana Harshbarger (R-TN) posted “Interconnection studies are taking years when they should take months. Today I introduced the Affordable Innovation for the Grid Act to assess how AI and High-Performance Computing can optimize our bulk-power system and cut through that backlog”

• Energy and Commerce Committee posted “As demand for AI infrastructure grows, the financial burden should not be passed on to the American people. RepGabeEvans’ Ratepayer Protection Act will ensure the costs of grid upgrades are appropriately paid for, protecting families and small businesses from shouldering the cost of expensive data centers.”

• Sen. Mike Rounds (R-SD) posted “Artificial intelligence is here to stay, and America has an opportunity to lead. Grateful for the chance to speak at the USA AI Summit about the role we play in creating a regulatory environment that drives domestic development in a positive direction.”

• Rep. María Elvira Salazar (R-FL) posted “For all the good AI can do, there has to be a line. No one should have to worry that their face or voice can be stolen and used to deceive others.That’s why I’ve been pushing the bipartisan NO FAKES Act from day one. People should decide what happens to their own likeness, not Big Tech, not scammers, not anyone else.I’m grateful to the thousands of sagaftra members who are raising their voices on this issue. The technology is moving fast. Congress can’t afford to fall behind.”

• Sen. Dave McCormick (R-PA) posted “Pennsylvania can lead the AI revolution and power America’s future. But we need the infrastructure and energy production to meet this moment. Permitting reform is key to unlock PA’s energy potential.”

• Rep. Ted Lieu (D-CA) posted “It’s the government’s job to help people navigate the AI revolution. That starts with reversing Republicans’ cuts to health care.”

• Rep. Luz Rivas (D-CA) posted “I am proud to be joining the Congressional Artificial Intelligence Caucus! As AI becomes more common in everyday life it is important for Americans to have the knowledge and tools to use this technology responsibly, safely, and effectively. I look forward to working with co-chairs RepMcCaul and RepDonBeyer and our colleagues to expand innovative opportunities for our communities.”

What I’m Reading This Week

• Inside the White House’s AI Power Center, Maria Curi, Axios.

• Trump Advisers Weigh Structure of AI Stakes, Eleanor Mueller, Semafor.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

Check out our other newsletter, DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy

Congress continues to broaden its focus from AI safety debates to concrete guardrails on elections, finance, defense, online harms, workforce impacts, and critical‑infrastructure cybersecurity.

The SEC finalized joint data standards meant to make financial regulatory reporting more interoperable in an AI‑driven world. NIST published a mathematical proof underscoring that fixed guardrails can never fully secure AI systems and calling for continuous red‑teaming and monitoring. The White House moved to restrict U.S. access to Anthropic’s most advanced models.

Read more below

Congress

Hearings

Last week

• On June 11, the Senate Banking, Housing and Urban Affairs Committee held a hearing on “AI and the American Dream: Promoting Innovation, Affordability, and American Dominance.”

This week

• On June 16, the Senate Health, Education, Labor and Pensions Education and the American Family Subcommittee holds a hearing on “The Future of K-12 Education in the Age of Artificial Intelligence.”

• On June 17, the Senate Foreign Relations Committee holds a markup of bills including the U.S. Technology Procurement and Access to Trusted Hardware (U.S. Tech PATH) Act.

Upcoming

• On June 23, the Senate Judiciary Committee will hold a hearing titled “Examining Tech Industry Practices and the Implications for Users and Families: Is This Social Media’s Big Tobacco Moment?” to consider issues including AI safety.

• On June 25, the House Financial Services Subcommittee on Capital Markets holds a hearing on “From Wall Street to Main Street: The Future of How America Invests.”

Legislation

• Sens. Jeff Merkley (D-OR), Alex Padilla (D-CA), Mazie Hirono (D-HI), Sheldon Whitehouse (D-RI), and Peter Welch (D-VT) introduced the Fraudulent Artificial Intelligence Regulations (FAIR) Elections Act to ban false election-related AI-generated content intended to suppress voters and target election workers and prohibits the federal government from deploying tools that could be used for voter suppression and allows voters to correct against wrongful removals from voter rolls if they are erroneously removed due to the federal government’s actions. (Press release)

• Senate Banking, Housing, and Urban Affairs Committee Ranking Member Elizabeth Warren (D-MA) and Sen. Richard Blumenthal (D-CT) introduced the AI Bubble Transparency Act to direct the Treasury Office of Financial Research (OFR) to collect data from financial companies on their AI-related exposures. (Text)

• Rep. Harriet Hageman (R-WY) introduced the Preventing AI Censorship Act to give American citizens the right to sue federal employees who violate their First Amendment rights through the use of AI. (Press release)

• Sen. Ed Markey (D-MA) and Rep. Don Beyer (D-VA) reintroduced the Artificial Intelligence (AI) Environmental Impacts Act to require AI data centers to report on their environmental and energy-related impacts, direct the National Institute of Standards and Technology to establish measurement standards, and require the Environmental Protection Agency to compile and publish a comprehensive study on the environmental and energy-related lifecycle impacts of AI and related infrastructure. (Press release)

• Sens. Mark Kelly (D-AZ), Jim Banks (R-IN), and Todd Young (R-IN) introduced the Artificial Intelligence Data Authorization and Transparency Act (AI DATA) to authorize and modernize federal labor market data surveys and reports to better understand how AI is reshaping and impacting the American workforce. (Text)

• Sen. Mark Warner (D-VA) introduced the Combat Emerging Threats to Critical Infrastructure Act to direct the Cybersecurity and Infrastructure Agency (CISA) to work with regulators and industry to develop up-to-date cybersecurity plans in light of AI model capable of identifying and exploiting vulnerabilities in our country’s cybersecurity infrastructure. (Text)

• Sens. Jon Husted (R-OH), Chris Coons (D-DE), Bill Cassidy (R-LA) and Chris Murphy (D-CT) introduced the Stopping Illegal Minor Simulations (SIMS) Act to establish criminal and civil penalties for any person who owns or operates a chatbot designed to simulate a child and engage in sexually explicit conversations or conduct. (Text)

• Reps. Nathaniel Moran (R-TX) and Jennifer McClellan (D-VA) and Sens. Marsha Blackburn (R-TN) and Brian Schatz (D-HI) reintroduced the Curbing Online Non-Consensual Sexually Explicit Nudity Transfers (CONSENT) Act to prohibit the nonconsensual sharing of intimate images across social media platforms and dating apps. (Text)

• Senate Banking, Housing, and Urban Affairs Committee Ranking Member Elizabeth Warren (D-MA), sent a letter to Chair Tim Scott (R-SC) urging him to hold an additional hearing on AI policy with Trump Administration officials, including Secretary of the Treasury Scott Bessent and Secretary of Commerce Howard Lutnick. (Letter)

• Senate Defense Appropriations Ranking Member Chris Coons (D-DE) and Senate Armed Services Committee Ranking Member Jack Reed (D-RI) introduced the Responsible Artificial Intelligence Defense (RAIDA) Act to require human operators to retain the ability to monitor and manually deactivate autonomous systems, direct DOD to maximize use of AI and autonomous capabilities, require impact assessments for higher-risk AI capabilities to safeguard civil liberties, and direct DOD to conduct rigorous testing before putting these weapons into the field. (Text)

• House Select Committee on China Chair John Moolenaar (R-MI) and Reps. Scott Fitzgerald (R-WI) and Darrell Issa (R-CA) introduced the Prohibiting Adversarial Patents Act to prohibit the issuance of a U.S. patent to any person or entity who is identified to be a threat to U.S. national security pursuant to the Non-SDN CMIC List, the 1260H List, or the FCC’s Covered List. (Text)

• Sens. Michael Bennet (D-CO) and Ted Budd (R-NC) introduced the Semiconductor Superiority Act to amend Section 48D of the CHIPS and Science Act of 2022 to clarify that space-based semiconductor manufacturing is an included use for tax credits. (Text)

Correspondence

• House Financial Services Committee Ranking Member Maxine Waters (D-CA) sent a letter to the Chief Executive Officers of JPMorgan Chase, Citigroup, Bank of America, Morgan Stanley, Wells Fargo, and Goldman Sachs, demanding an immediate briefing on how they are addressing newly discovered cybersecurity vulnerabilities linked to advanced artificial intelligence. (Letter)

Publications and Events

• Sen. Josh Hawley (R-MO) published an op-ed in The Free Press entitled “AI Will Control Us If We Do Not Control It” about the consequences of AI and the responsibility of the federal government to control the impact on jobs, regulate data centers, and ensure safety. (Op-ed)

• Rep. Lori Trahan (D-MA) published an op-ed in The Boston Globe entitled “Why Congress Must Lead on AI Standards,” saying, “In the absence of a federal regulatory framework, power concentrates in the hands of a small number of companies racing to build the most potent technology in human history. They ask us to trust them while they write the rules of the road themselves. We’ve seen this movie before. Lawmakers spent the last two decades playing catch-up to social media giants, and the public is still paying the price.” (Op-ed)

• The Congressional Research Service (CRS) published a report on FDA Regulation of AI-Enabled Devices. (Report)

Trump Administration

Financial Regulators

• The Securities and Exchange Commission (SEC) published a final rule to establish technical standards for data submitted to certain financial regulatory agencies. Agencies that have established or are expected to act on establishing the joint standards are the Board of Governors of the Federal Reserve System, the Commodity Futures Trading Commission, the Consumer Financial Protection Bureau, the Department of the Treasury, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the Office of the Comptroller of the Currency. The joint standards are designed to promote interoperability of financial regulatory data across the agencies by establishing common identifiers for entities, geographic locations, dates, and certain products and currencies. (Press release)

National Institute of Standards and Technology (NIST)

• A NIST researcher published a paper with a new proof showing that a fixed set of guardrails placed on AI is not universally robust against adaptive adversarial prompts, with findings showing that developers and organizations deploying AI systems need to dedicate resources to finding prompts that would break the security of AI systems, and to address them before adversaries can exploit them. (Press release)

White House

• The White House sent a directive to Anthropic instructing it to limit access for U.S. nationals, including Anthropic employees, to AI models Mythos and Fable 5. (Semafor)

• First Lady Melania Trump awarded six student National Champion Teams at the White House during the first Presidential Artificial Intelligence Challenge National Champion Awards Ceremony. (Press release)

Noteworthy Quotes

ADMINISTRATION

White House

• Senior Adviser for AI Sriram Krishnan announced he is leaving the Trump administration at the end of June, posting, “It is hard to express how big a privilege it has been to serve the American people and how grateful I am to have had the opportunity to do so. First and foremost, it has been an honor to serve under President [Donald Trump]. Without his leadership, we would not be leading in the AI race.”

• Co-chair of the President’s Council of Advisors on Science and Technology (PCAST) David Sacks posted “The AI infrastructure boom is generating strong demand for skilled blue-collar workers. In fact, there’s a shortage of electricians, fiber technicians, and mechanical tradespeople needed to build and maintain AI data centers. Meta’s new $115M America’s Workforce Academy provides paid training plus job guarantees for exactly these roles. This is the kind of practical jobs training program that we need more of.”

Commodity Futures Trading Commission (CFTC)

• CFTC Chair Mike Selig posted “SenTedCruz and I agree: America must lead in financial innovation. It’s not a question of WHETHER innovations like AI, crypto, or prediction markets transform financial markets, but a question of WHERE these innovations will take root. I’m committed to ensuring that these innovations are available on American soil and subject to American laws and regulations.”

CONGRESS

U.S. Direct Public Ownership Stake in AI Companies

• Sen. Mike Rounds (R-SD) said, “What I don’t want to do is get stuck with one company or two companies that we’ve got a vested interest in ,and then find out that there’s a better company out there that would have a better product, but we’re tied in equity-wise with one company. So, I don’t necessarily care for the idea.” (Semafor)

• Sen. Josh Hawley (R-MO) said “I’m not a huge fan of government ownership where you have big government owning Big Tech. To me, those are the two worst actors in America, or pretty close, I don’t really want to put them together. What I’d love to do is break up those big companies, introduce more competition, and give everyday working people more control of their data, their own lives. Now, a sovereign wealth fund, on the other hand, that’s a different idea. That I’m a little bit warmer to.” (Semafor)

• Sen. Angus King (I-ME) said, “I don’t think that’s the place of the US government to be involved in private companies. For example, do you pass a regulation that might impinge on the profitability of a company that you own a stake in? It sort of creates a built-in conflict of interest. I just don’t think it’s part of the job of the federal government to own pieces of US companies.” (Semafor)

• Sen. Tim Kaine (D-VA) said, “I would be open to the discussion. Here is the issue. … The [Defense Department] has done a deal or two in this space and it makes many other companies feel like, ‘well, wow, in the bidding process, we’ll never win that, because they’ll always put their thumb on the scale for the one where they have the stake.’ So how do you square something like that with the virtues of the bidding where people ought to be able to compete and if they are the best product, win the competition? On the DOD side, could there be some upside value? Sure, there could be. But you also end up with other competitors who are saying, ‘We are competitively disadvantaged by that.’ So fairness is important.” (Semafor)

• Senate Commerce Chair Ted Cruz (R-TX) said, “I don’t think the federal government should be in the business of being an equity holder in private companies.” (NOTUS)

• Sen. Jerry Moran (R-KS) said, “Generally I think the private sector should remain the private sector.” (NOTUS)

• Sen. Bernie Sanders (I-VT) said, “Trump is many things, but he is a good politician, and he understands where people are coming from, and he understands that there’s a lot of anxiety with regard to AI. Do I have great confidence that Trump will do the right thing? No, I don’t.” (Politico)

Miscellaneous

• Senate Banking Ranking Member Elizabeth Warren (D-MA), released a statement on President and CEO of NVIDIA Corporation Jensen Huang’s declining to testify before the Senate Banking, Housing, and Urban Affairs Committee hearing on artificial intelligence, saying, “I appreciate Mr. Huang’s response, but the American people deserve answers in a public forum. NVIDIA sits at the center of some of the most important questions facing our country about artificial intelligence, economic competition, and national security. If Mr. Huang has time to attend a $1 million-a-head dinner at Mar-a-Lago and fly across the world to meet with President Xi Jinping of China, he should be able to find time to answer questions from Congress.” (Press release)

• On the potential for the Senate Banking Committee to mark up export control legislation, Ranking Member Elizabeth Warren (D-MA) said, “Ultimately, if we did a markup, we might unite it with the NDAA, but the place we should start is over in Banking.” (Punchbowl)

• On a potential Senate Commerce Committee markup of a federal AI regulatory framework that includes preemption of state laws, Chair Ted Cruz (R-TX) said, “The precise details are still being negotiated. It depends where we get consensus.” (Punchbowl)

• Rep. Jake Auchincloss (D-MA) posted “Fix prior authorization, now — before AI makes it even worse.”

• Rep. Joe Morelle (D-NY) posted “While Republicans continue cutting education, I’m fighting to protect IESResearch and other initiatives that help students and teachers thrive. At a time when AI and new technologies are reshaping education, we should be investing in progress, not cutting it.”

• Rep. Lori Trahan (D-MA) posted “This decision further illustrates the need for a thoughtful and durable national strategy on AI. Decisions this consequential shouldn’t turn on a single directive issued at 5pm on a Friday. They should follow rules that are clear, fair, grounded in technical facts, and built to last beyond any one administration. Congress must act.”

• Rep. Deborah Ross (D-NC) posted “ICYMI: Alongside ValerieFoushee, I called on AI companies to address chatbots that have encouraged users to carry out mass shootings, suicide, and other harmful actions. We cannot allow AI to promote deadly and dangerous behavior with no recourse. We need accountability.”

• Rep. Josh Gottheimer (D-NJ) posted “This is why we need a concrete system in place to ensure the world’s most powerful AI models are being vetted and cleared as safe before they’re released. We’re in a Cold War with China on AI. We have to win, but we have to win the right way. Purely voluntary processes clearly aren’t going to do the trick.”

• Rep. Nancy Mace (R-SC) posted “Nonconsensual sharing of intimate images destroys lives. Careers. Relationships. And until now, the law has not done enough to stop it. Deepfake porn. Sextortion. Voyeurism. Revenge porn. We introduced the VANISH (Victimizer Accountability for Nonconsensual Images and Spiteful Humiliation) Act to address these issues head on. The VANISH Act puts victims first, holds predators accountable, and sends a clear message: if you exploit someone, there will be consequences. We will always stand up for women and victims who deserve justice. Hold the line.”

• Rep. Jay Obernolte (R-CA) posted “Artificial intelligence has tremendous potential to improve lives, strengthen our economy, and help solve real problems. But like any powerful tool, it can also be misused by scammers and cybercriminals. That is why I cosponsored the Artificial Intelligence Public Awareness and Education Campaign Act to help Americans recognize AI-enabled fraud, protect their personal information, and use this technology with confidence.”

• Energy and Commerce Committee posted “Nearly half of Americans have NO comprehensive data privacy protections, and small businesses are being left in the dark. HouseCommerce is ready to fix that once and for all with the SECURE Data Act, creating one national standard to give all Americans clear and comprehensive data privacy protections.”

What I’m Reading This Week

• AI for the Legal Industry and Circular 230, Mindy Herzfeld, Tax Notes.

• Anthropic disables new models after government calls them a national security concern, Greg Otto, CyberScoop.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

Check out our other newsletter, DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy

President Trump signed his anticipated AI executive order, advancing a narrower, voluntary framework that allows the federal government up to 30 days to review frontier AI models prior to public release. The order establishes a Treasury-led AI cybersecurity clearinghouse, directs the NSA to designate “covered frontier models,” and instructs the Attorney General to prioritize prosecutions of AI-enabled cyber intrusions, while explicitly prohibiting any mandatory licensing, preclearance, or permitting regime.

In parallel, Trump issued a National Security Presidential Memorandum directing national security agencies to accelerate AI adoption across military and intelligence operations.

On Capitol Hill, Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA), along with four bipartisan co-sponsors, released a 269-page discussion draft of the Great American Artificial Intelligence Act. The proposal would preempt certain state laws governing AI model development for three years, require leading frontier developers to publish catastrophic risk preparedness plans, and mandate safety incident reporting to both federal and state regulators. The draft has yet to gain traction among House Democrats, many of whom are deferring consideration of comprehensive AI regulation until the next Congress.

Meanwhile, in a notable convergence of ideas at different ends of the political spectrum, Sen. Bernie Sanders (I-VT) floated the creation of an American AI sovereign wealth fund to provide the public with an ownership stake in major U.S. AI firms. President Trump also indicated he may meet with AI executives this week to discuss a proposal that would require AI companies to distribute dividends to Americans.

Read more below

Congress

Hearings

Last week

• On June 3, the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade held a hearing on “Examining Legislation to Establish a Federal Comprehensive Privacy and Data Security Law.”

• On June 3, the House Education and the Workforce Subcommittee on Higher Education and Workforce Development held the seventh hearing in a series on artificial intelligence, entitled “Building an AI-Ready America: Higher Education in the Age of AI.”

• On June 3, the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade held a hearing on “Examining Legislation to Establish a Federal Comprehensive Privacy and Data Security Law.”

• On June 4, the House Judiciary Subcommittee on Courts, Intellectual Property, Artificial Intelligence, and the Internet held a hearing on “Medicines and IP: Balancing Innovation and Access.”

• On June 4, the House Homeland Security Subcommittee on Cybersecurity and Infrastructure Protection held a hearing on “The AI Security Landscape: How Frontier Models, Agentic AI, and AI Coding Tools Are Reshaping Cybersecurity and Critical Infrastructure Resilience.”

This week

• On June 11, the Senate Banking, Housing and Urban Affairs Committee holds a hearing on “AI and the American Dream: Promoting Innovation, Affordability, and American Dominance.”

Upcoming

• On June 23, the Senate Judiciary Committee will hold a hearing titled “Examining Tech Industry Practices and the Implications for Users and Families: Is This Social Media’s Big Tobacco Moment?” to consider issues including AI safety.

• On June 25, the House Financial Services Subcommittee on Capital Markets holds a hearing on “From Wall Street to Main Street: The Future of How America Invests.”

Legislation

• Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA) released a discussion draft of the Great American AI Act to create a federal framework for how the United States governs artificial intelligence. The draft is supported by Reps. Scott Franklin (R-FL), Suhas Subramanyam (D-VA), Erin Houchin (R-IN), and Scott Peters (D-CA). (Press release)(Text)

• House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party John Moolenaar (R-MI) introduced the Biotech Investment National Security (BINSA) Act of 2026 expands the definition of prohibited and notifiable technology under the Defense Production Act to include biotechnology such as pharmaceutical development, biologics manufacturing, and clinical research capabilities. It specifically targets licensing, joint ventures, and equity investments that transfer intellectual property or know-how to Chinese entities. (Text)

• Sen. Mark Kelly (D-AZ) introduced a two-bill package, the Ultimate Human Responsibility in Defense Systems Act and the Warfighter AI Readiness and Preparedness (WARP) Act, to make sure that as artificial intelligence is integrated in warfare the U.S. military preserves human judgement and accountability and protects the human skills that AI cannot replace. The Ultimate Human Responsibility in Defense Systems Act establishes statutory requirements to ensure autonomous weapon systems are developed, tested, and employed in a manner that preserves meaningful human judgment and accountability over the use of force. Similar legislation was introduced by Rep. Suhas Subramanyam (D-VA) in the House. The WARP Act, introduced with Sen. Tom Cotton (R-AR), directs the Department of Defense (DoD) to assess how increasing AI integration affects warfighter effectiveness, skill retention, and operational readiness. (Ultimate Human Responsibility in Defense Systems Act)(WARP Act)

• Sens. Brian Schatz (D-HI) and Marsha Blackburn (R-TN) and Reps. Jennifer McClellan (D-VA) and Nathaniel Moran (R-TX) reintroduced the Curbing Online Non-consensual Sexually Explicit Nudity Transfers (CONSENT) Act to establish a private right of action against a person who transmits unsolicited intimate visual depictions. (Text)

• Reps. Scott Fitzgerald (R-WI) and Darrell Issa (R-CA) and Select Committee on China Chair John Moolenaar (R-MI) introduced the Prohibiting Adversarial Patents to prohibit the issuance of a U.S. patent to any person or entity who is identified to be a threat to U.S. national security pursuant to the Non-SDN CMIC List, the 1260H List, or the FCC’s Section 2 List. Any patent previously issued to companies on these lists would be unenforceable. (Press release)

• Rep. Scott Fitzgerald (R-WI) introduced the Foreign Adversary Patent Disclosure Act to require patent applicants to disclose the identity of each person with an ownership interest in the claimed invention who, in the previous five years: was employed by an entity owned or controlled by a foreign adversary; received funding from a state-affiliated research fund or talent recruitment program associated with a foreign adversary; or received any other financial incentive from a foreign adversary. (Press release)

• Sen. Kirsten Gillibrand (D-NY) introduced the Secure and Accountable Military AI Act to establish a comprehensive framework to govern the deployment, security, and operational use of AI by the U.S. Department of Defense, ensuring that human commanders remain in control of life-and-death decisions and banning AI’s use entirely in certain critical contexts. (Press release)

• Rep. Sara Jacobs (D-CA) introduced the Sectoral AI Governance Act to provide federal agencies a consistent framework for writing and issuing rules whenever the use of AI is likely to materially contribute to violations of existing federal laws. (Press release)

• Reps. Yvette D. Clarke (D-NY), Beth Van Duyne (R-TX), and Valerie Foushee (D-NC) introduced the Creative Rights Ensuring Artists’ Technique and Originality Are Reserved (CREATOR) Act to safeguard visual artists from the unauthorized commercial exploitation of their unique and creative artistic styles in the age of artificial intelligence. (Text)

• Sens. Dave McCormick (R-PA), John Hickenlooper (D-CO), Todd Young (R-IN), and Martin Heinrich (D-NM) introduced the National Commission on Robotics Act to establish an independent commission to evaluate America’s competitiveness in robotics and recommend policies to strengthen U.S. leadership in that field. (Text)

Correspondence

• Sens. Lisa Blunt Rochester (D-DE), Tommy Tuberville (R-AL), and Tim Kaine (D-VA) sent a letter to the Government Accountability Office (GAO) requesting an investigation into the use of AI in K-12 education. The letter directs GAO to investigate AI’s influence on student achievement, teacher professional development, and use in special education. (Letter)

• Senate Banking, Housing, and Urban Affairs Committee Ranking Member Elizabeth Warren (D-MA) sent a letter to Treasury Secretary Scott Bessent urging the Trump Administration to strengthen the cybersecurity resilience of the financial sector amidst the growing risks of artificial intelligence-enabled cyberattacks. (Letter)

• House Committee on Energy and Commerce Chair Brett Guthrie (R-KY) and Reps. John Joyce (R-PA) and Bob Latta (R-OH) sent a letter to the Co-Chairs of the President’s Council of Advisors on Science and Technology (PCAST) and Federal Bureau of Investigation (FBI) Director Kash Patel requesting information about the evidence that strongly suggests there are foreign influence campaigns working to slow American AI progress and block the development of the infrastructure we need to power it. (Letter)

• Chair of the House Gun Violence Prevention Task Force Mike Thompson (CA-04), Rep. Valerie Foushee (D-NC), and members of the task force sent a letter to OpenAI and Google DeepMind urging the companies to address the risks posed by online chatbots and requesting information on the steps they are taking to protect consumers and public safety. (Letter)

• Sen. Elizabeth Warren (D-MA) sent a letter to NVIDIA Corporation’s Executive Vice President, General Counsel and Secretary Tim Teter and Member of the Board of Directors and Chair of the Audit Committee Brooke Seawell, requesting answers about the company’s compliance with U.S. export control laws and regulations and the accuracy of its public statements regarding the diversion of advanced AI chips to China. (Letter)

• Sen. Mark Warner (D-VA) sent a letter to Treasury Secretary Scott Bessent urging Treasury to better understand and develop rules surrounding agentic artificial intelligence usage across the financial services sector. (Letter)

Publications and Events

• Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA) published an op-ed in Bloomberg entitled “America Needs One National Framework for Artificial Intelligence,” saying “The question before Congress isn’t whether AI will be governed. It’s whether we will build a clear national framework that protects Americans, supports innovation, and ensures the US leads the world in shaping this technology. That is why, as a Republican and a Democrat, we’re releasing a bipartisan discussion draft of the Great American Artificial Intelligence Act. Policy for a technology this transformative can only be built to last if it’s written by both parties.” (Op-ed)

• Rep. Lori Trahan (D-MA) published an op-ed in the Commonwealth Beacon entitled “Congress must act now on AI.” She says, “After Mythos, I went to work trying to change that. I entered negotiations with my Republican colleague on the House Energy and Commerce Committee, Congressman Jay Obernolte of California, to build a bipartisan federal AI framework. Those talks have been hard and remain unfinished, but they have made something clear: The basic architecture of serious AI governance is within reach. There is more bipartisan agreement on the fundamentals than people might expect. Here is where that consensus lives. First, real accountability at the frontier… Second, independent verification of safety practices… Third, protect American workers… Finally, shore up our cyber defenses.” (Op-ed)

• Sen. Bernie Sanders (I-VT) published an op-ed in the New York Times titled “A.I. Is a Public Resource. You Should Own Half of It.” He argues, “I will soon be introducing the American A.I. Sovereign Wealth Fund Act. This legislation would give the public a direct ownership stake in the largest A.I. companies in our country. How? It would create a sovereign wealth fund through a one-time 50 percent tax — not on the profits of OpenAI, Anthropic, xAI and other companies, but paid with something far more valuable than that: the stock. If passed, this legislation would do two crucial things. First, it would give the public a direct role in determining the future of this technology. No longer would the future of A.I. and the transformation of human life that it will bring be dictated by a handful of Big Tech oligarchs. The federal government would have the power, through its voting shares and an equal representation on each company’s board, to block decisions that hurt our citizens and to push for policies that help them. Second, this legislation would guarantee that the trillions of dollars potentially generated by A.I. are used to improve the lives of all of us — not simply to make the richest people in the world even richer. If the big A.I. companies continue to grow as rapidly as many analysts expect, then the value of the sovereign wealth fund will grow as well — and the benefits to the American people will grow along with it.” (Op-ed)

Trump Administration

White House

• President Trump signed an Executive Order on “Promoting Advanced Artificial Intelligence Innovation and Security” directing federal agencies to use AI to strengthen cybersecurity, set up a voluntary process for frontier AI companies to share models with the government before release, and crack down on AI-enabled cybercrime. It does not create mandatory licensing or pre-clearance for AI models. (EO)

• President Trump signed “National Security Presidential Memorandum NSPM‑11: Artificial Intelligence in the National Security Enterprise,” which directs the U.S. national security enterprise to accelerate AI adoption across military and intelligence operations. NSPM-11 organizes the Administration’s national security AI policy around four pillars, which the memorandum calls Adoption, Adaptation, Assurance, and Accountability. The NSPM rescinds and replaces the Biden Administration’s NSM‑25, which the White House says fostered single‑vendor dependencies and bureaucratic delays. (Memo)(Fact Sheet)

• On June 9, the White House hosts the Presidential Artificial Intelligence Challenge National Champion Awards Ceremony.

Federal Trade Commission (FTC)

• The FTC sent to the Office of Intergovernmental Regulatory Affairs (OIRA) a Policy Statement Concerning the Suppression of Accuracy in Artificial Intelligence Systems. (Notice)

The United States Patent and Trademark Office (USPTO)

• The USPTO announced the launch of the Standards Participation and Representation Kudos (SPARK) Pilot Program to incentivize participation in standards development organizations (SDOs) by U.S. small and medium-sized businesses, universities, and non-profit organizations. Under the pilot program, examination of certain patent applications and ex parte appeals to the Patent Trial and Appeal Board (PTAB) may be expedited if the U.S.-domiciled juristic applicant meaningfully participated in a voluntary consensus-based SDO and meets the requirements specified in this notice. (Notice)

National Institute of Standards and Technology (NIST)

• On June 16-17, NIST holds a meeting of the Visiting Committee on Advanced Technology to review and discuss its policies within the framework of applicable national policies as set forth by the President and Congress.

Noteworthy Quotes

ADMINISTRATION

White House

• President Donald Trump could meet with AI company executives at the White House this week to discuss a potential “partnership” between the government and AI companies which would require the company to send dividends to Americans. Trump said, “There’s a concept out there, there’s so much money and it’s so big that there are concepts where pieces could be given to the American public, where the American public essentially becomes a partner with the companies. I have spoken to all of them. We’re talking about it where the American people can benefit from the success of AI. And by doing that, they’re going to like it better.” (Politico)

• On the similarities between Trump’s proposal and an AI profit-sharing plan from Sen. Bernie Sanders (I-VT), Trump said, “As far as economics is concerned, we have certain things that aren’t that far apart. People are surprised.” (Politico)

• White House adviser David Sacks opposed the proposal, saying it is “the corporate-government fusion we’re already sliding toward.” (Politico)

• Sacks posted “While I’m no fan of socialism or arbitrary confiscations of wealth, I can see why Bernie Sanders’ proposal (for the government to take a 50% stake in AI companies) resonates, including with many on the right. The CEOs of the leading AI labs have told us repeatedly that they will cause massive job loss. This is not a story that I believe, nor does the data bear it out, but this is what they have told us. Similarly, they have hyped the risks of AI without putting an equal or greater emphasis on the benefits or readily available mitigations. Conservatives have another fear. The employees of the leading labs claim to be philanthropic, but what we’ve seen is massive enrichment of NGOs advancing an agenda at odds with traditional values, fueling a revolution against our cities and communities. Soros-maxxing is not charity in our book. Anthropic and OpenAI have established themselves as Public Benefit Corporations. What could be more in the public benefit than using half the wealth generated by these companies (which trained for free on the collective knowledge of humanity) to pay down the national debt? There is no ideological bias in that philanthropy. Dario and Sam have begun to walk back their claims of massive job loss, but the damage to public trust is done, and now the chickens are coming home to roost. I could almost support the Sanders proposal as a stupidity tax. There’s just one problem. Nationalization of AI will accelerate the corporate-government fusion we’re already sliding toward. Conservatives rightly fear a Central Bank Digital Currency. They ought to be even more concerned about Central Government AI — a system with even more totalistic power over information, decision-making, and human behavior. We saw how social media was weaponized to censor conservatives (including President Trump) in the last Democrat administration. The definition of “trust & safety” expanded to mean protecting the public from supposed psychological harms, micro-aggressions, and disinformation (you know, like hearing conservative ideas or true facts about Covid). That “safety” agenda as applied to AI will be vastly more powerful and Orwellian. AI won’t just moderate posts; it will curate reality — with the ability to rewrite history, enforce ideological conformity, influence policy at scale, mass surveil Americans, and condition the benefits of the many systems it controls on approved behavior. America won’t win the AI race if we beat China but end up with a CCP-style social credit system in the U.S. — and that is the danger as the government becomes more deeply involved in AI development and assumes direct ownership and control. Conservatives are right to fear where this is all headed but ought to think more carefully about how regulations they are flirting with now (that are widely celebrated among those with a long history of lust for Big Government) will be used against them the next time a Democrat administration is in power.”

• Sacks also posted “As with Climate Change, the AI Doom narrative will be embraced by all cuckservatives.”

• Sacks also posted “Signs you might be trying to get your frontier AI lab nationalized: You compare it to nukes… threaten half of white-collar jobs… warn recursive self-improvement could end humanity… then race ahead anyway. In other words, you want the government to save us from… you.”

• Sacks also posted “Many have reached out to me regarding the new Cyber EO. A few thoughts: First, President Trump is the most pro-innovation president we’ve ever had. He’s made it clear that the U.S. has to win the AI race and that a pro-innovation, pro-energy, and pro-infrastructure policy is the way to do that. Thanks to President Trump, AI will generate over a 2% tailwind to GDP growth this year, with hundreds of thousands of new construction jobs and 25-30% wage increases for blue collar workers. President Trump is the reason that we have an AI boom happening right now. The change in the EO from a 90 day to 30 day period is a game changer because it allows our AI labs to comply with the voluntary framework without delaying new model releases. They can synchronize their efforts under the EO with other pre-release activities. Furthermore, I’ve been advised by the lawyers who draft EOs that 30 days means calendar days, not business days. In the AI race, every day counts. As OSTP well notes, “The EO creates a process for frontier labs to voluntarily share cutting-edge cyber models in order to secure critical infrastructure and strengthen the government’s own cyber defenses. We are NOT conducting oversight of all new models, as that level of government overreach would have chilling effects on free speech and innovation.” OSTP’s characterization is completely consistent with the discussions that I have participated in, where it was agreed that the EO is intended to apply only to models that represent a meaningful step-change in cyber capabilities (eg Mythos), not to incremental version numbers of existing models (eg Opus 4.7 -> 4.8). Finally, I understand the concerns of many that this could morph into an ‘FDA for AI’. Of course bureaucratic mission creep is always a danger and this should be closely monitored. But the EO expressly forbids the creation of a new licensing, preclearance, or permitting regime. Most importantly, I do not believe that President Trump would allow this to happen. As AI presents new policy challenges (such as cyberweapons), I believe that everyone in the administration is working diligently to navigate the issues with the American people in mind. I look forward to working with the Treasury, NSA, ONCD and others on the implementation of this framework.”

Department of Homeland Security (DHS)

• On Treasury Secretary Scott Bessent’s lead role in maintaining an AI cybersecurity clearinghouse, rather than the DHS Cybersecurity and Infrastructure Security Agency (CISA), DHS Secretary Markwayne Mullin said, “CISA interacts with just about every other agency out there, and when we started looking at the biggest threats that AI is used for, it is through financial gain. Scott Bessent and I talk all the time; he is very capable. We are very comfortable with what’s happening there with him leading in this area, because we’re partnering with CISA and our tools with the unique authority we have, and then he has separate authority. So we’re, because of the coordination, I think we’re better prepared than just leaving it within DHS.” (FedScoop)

Treasury Department

• In testimony before the Senate Finance Committee, Secretary Scott Bessent said, “I’ve been in contact with all of the large language model labs. I was in San Francisco on Saturday meeting with them. We have convened at Treasury the largest banks, and they are working diligently on their standards. I think the rest of the industry can learn from them.” (Politico)

• Bessent added, “The executive order yesterday I think strikes a very good balance between innovation and safety.” (Politico)

Federal Reserve

• Vice Chair for Supervision Michelle Bowman testified before the House Financial Services Committee, saying, “The financial system continues to adapt to technological advances, including the rapid evolution of artificial intelligence (AI) capabilities and the risks and benefits of its use. Recent advances in frontier AI models have dramatically accelerated the identification of cyber vulnerabilities across critical infrastructure, including the banking system. While this enhanced detection capability offers opportunities to strengthen cybersecurity defenses, it also identifies new vulnerabilities to potential cyberattacks. The Federal Reserve is committed to supporting government-wide efforts to enhance cybersecurity and working with banks as they navigate this complex threat environment. Effectively managing these emerging cyber risks will require ongoing collaboration between public and private entities, continuous monitoring of AI developments, regular stakeholder communications, and agile regulatory and supervisory frameworks that keep pace with rapid technological change.” (Remarks)

CONGRESS

Obernolte-Trahan Great American Artificial Intelligence Act

• The House Commission on AI and the Innovation Economy Co-Chairs Reps. Ted Lieu (D-CA), Valerie Foushee (D-NC), and Josh Gottheimer (D-NJ) released a statement saying, “While we appreciate the bipartisan effort from Representatives Jay Obernolte and Lori Trahan, their proposed discussion draft on AI does not meet the enormity of the moment. We do not support the discussion draft as it currently stands. The House Commission on AI and the Innovation Economy has spent months working closely with our colleagues and key stakeholders from civil society organizations, industry, labor, academia, and others addressing AI issues. Many of those same organizations share our view that this document cannot serve as the basis for productive dialogue. We look forward to continuing this discussion and developing thoughtful AI policies that protect the American people and drive American innovation.” (Press release)

• Rep. Doris Matsui (D-CA) posted “Congress needs to do the work of developing AI policy that supports innovation and protects people. But I have concerns that the Obernolte/Trahan draft goes too far in preempting states from responding to fast-moving AI harms. We should not take away states’ ability to protect consumers, workers, children, and communities, especially without clear, meaningful federal protections. Any federal AI bill must be targeted and strong enough to meet the moment—not so sweeping that it blocks responsible state action before Congress has put real safeguards in place.”

• Rep. Jay Obernolte (R-CA) said, “It’s only going to be with everyone pushing in the same direction that we have a chance of getting us across the finish line.” (Punchbowl)

• Obernolte also said, “We were pretty explicit in the preemption language that we are applying the preemption only to the regulation of development of AI, not the regulation of deployment of AI.” (Punchbowl)

• On meeting with OpenAI CEO Sam Altman about the AI bill, House Speaker Mike Johnson (R-LA) said, “He comes in on occasion to provide updates, and we’re going to talk about AI and the regulatory framework.” (Politico)

• On the bill, Johnson said, “We’re trying to finalize it, because everybody understands it’s an important issue.” (Politico)

• On preemption, Rep. Steve Scalise (R-LA) said, “There’s still some states with very severe limits on innovation, and that’s that’s a harmful thing for technology in general to limit innovation, and so the only way you can address that is through law.” (Politico)

AI Executive Order

• On Treasury’s lead role in maintaining an AI cybersecurity clearinghouse, rather than the DHS Cybersecurity and Infrastructure Security Agency (CISA), Rep. Michael McCaul (R-TX) said, “CISA still has to be the lead. Treasury does have a role because of the financial sector, but all those sectors have to refer to one organization and we put that into DHS.” (Punchbowl)

• Sen. Mark Warner (D-VA) released a statement saying, “Once again, the Trump administration has belatedly discovered the need to redo something it hastily dismantled in its first year. While this course correction – a rehash of proposals contained in the last administration’s 2023 executive order, bipartisan congressional legislation, and each of the last three years of intel authorization bills the Senate Intel Committee has passed – can begin to grapple with widespread impacts that new frontier models will have on our critical infrastructure, it can’t undo the years wasted on dismantling some of the most vital pillars of our nation’s cybersecurity response, including key information sharing initiatives and the federal agency established to protect the security of U.S. critical infrastructure. I salute the proposal for pre-deployment testing on a collaborative basis – just as I did when that idea was first advanced in the last administration’s EO, which was rescinded on Trump’s first day. I am strongly supportive of the effort to have NSA lead efforts to evaluate national security implications of frontier models in voluntary partnerships with frontier vendors – which is why we’ve included a provision directing NSA to do that in each of the last three years’ Intelligence Authorization bills my Committee has passed – which had been rebuffed by Trump allies in 2024 and 2025. Similarly, I’m heartened the president has learned the value of robust information sharing when new software vulnerabilities are discovered – and have been championing this kind of effort in bipartisan bills with Sen. Lankford and Sen. Tillis that would have gotten ahead of these problems years ago. While I hope that this new EO represents a dramatic change of course, I will also be watchful for indications the administration has reverted to his prior, ideological approach – for instance, by using these new pre-deployment partnerships as vectors to pressure U.S. firms into making changes to their products or Terms of Service to suit partisan or legally questionable objectives of the president and his allies.” (Press release)

• Rep. Josh Gottheimer (D-NJ) released a statement saying, “While today’s White House Executive Order represents a step in the right direction toward protecting America from national security risks, its purely voluntary nature lacks real teeth. Powerful AI frontier models that exhibit dangerous capabilities, including cybersecurity risks and the potential to create novel bioweapons, must be shared with the government and relevant critical infrastructure entities before they are released to the public. While this process can’t be bureaucratic, it shouldn’t be optional. A purely voluntary framework means allowing AI to remain the Wild West. After Anthropic’s Mythos announcement, we saw that good actors will proactively and expeditiously collaborate with the government to ensure that vulnerable organizations are safe from catastrophic cyber risk. But, we cannot trust that that will always be the norm. There are bad actors out there. AI is too important — and the stakes of inadequate guardrails too grave — to settle for anything less than comprehensive action. We can beat China, while protecting Americans and our critical infrastructure from serious risks. I’m working with my colleagues to develop commonsense policies and legislation in Congress to protect Americans, address national security risks, and boost American AI innovation.” (Press release)

• Rep. Don Beyer (D-VA), co-Chair of the bipartisan Congressional Artificial Intelligence Caucus, issued a statement saying, “The risks posed by frontier AI models and their advanced cyber capabilities are real and demand serious attention, but this executive order falls short of providing a credible framework to manage those risks. As it is written, this order continues to allow companies to release powerful models to the public without undergoing meaningful evaluation or review. This largely voluntary and classified approach is simply not sufficient. Equally concerning is absence of clear guidance on how identified threats would be addressed. While this order creates channels to surface potential risks, it fails to define procedures for responding to them once identified. It also opens the door to redirecting existing federal grant funding toward AI vulnerability efforts without clear safeguards or accountability. This is underwhelming policy that mirrors the Trump Administration’s broader pattern of creating a wild west environment for AI development, rather than ensuring safe and responsible governance to protect the American public.” (Press release)

Public Ownership of AI Companies

• Sen. Bernie Sanders (I-VT) posted “I will soon be introducing a bill to give the public a 50% ownership stake in the largest AI companies in America. This would guarantee that the trillions created by AI are used to improve the lives of all of us — and block oligarch decisions that harm the American people.”

• On Sanders’ proposal, Rep. Josh Gottheimer (D-NJ) said, “Sanders would like to put AI in a box and lock it up and make it go away. That’s not reality.” (Punchbowl)

• Sen. Josh Hawley (R-MO) said, “A sovereign wealth fund is not necessarily a bad idea” but not “the government owning AI.” (Punchbowl)

Miscellaneous

• Sen. Josh Hawley (R-MO) delivered remarks at American Compass New World Gala, saying, “And let me say a word now to my own party, because the Republican Party has a choice of its own to make—perhaps the defining choice of its next half century. We can be the party of the boardroom: the party of the donor and the share price, the party that measures a man by his market value and a policy by what it does to a stock. Or we can be the party of the covenant: the party of the good, the just, and the right; the party of the worker and the family and the small town; the party that remembers our commitment to justice for all, to the sanctity of the individual, to the dignity of labor, to the priority of the poor.” (Press release)

• In remarks at the House Financial Services hearing on oversight of prudential regulators, Rep. Bill Foster (D-IL) said, “America’s banks and credit unions are operating during a time of unprecedented change in the financial system. Consumers and markets are moving faster than ever, with improved access to information, 24-hour banking, and the reduced friction of modern payment systems, and soon personal agentic AI financial agents, fintech partnerships promote innovation and competition, but come with unique risks. Banks and credit unions are also facing a wave of fraud driven by artificial intelligence and deep fakes, while bad actors continue to exploit older banking tools, such as paper checks, for illicit purposes. Our prudential regulatory agencies must be agile and well resourced to respond to these risks. Preparing for liquidity risks of internet-driven bank runs and cyber threats from emerging AI tools should be a top priority, and our regulatory bodies need to maintain the necessary technology and human resources to do so effectively. This administration’s move to cut supervision and staff across the Federal Reserve, FDIC, and OCC is a step in the wrong direction.”

• Select Committee on the CCP Chair John Moolenaar (R-MI) issued a statement on the Trump Administration’s decision to block the sale of export-controlled chips to Chinese companies located outside of mainland China, “Winning the AI race against China requires commonsense export controls that are strictly enforced. The Trump Administration is right to close this loophole—a Chinese company anywhere in the world is subject to the CCP’s national security laws, and it should never be able to get ahold of advanced chips that its parent company in China is legally prohibited from buying. My SCALE Act complements this action by creating a clear export control standard to help secure America’s technology edge in line with President Trump’s AI Action Plan.” (Press release)

• Sens. Elizabeth Warren (D-MA) and Andy Kim (D-NJ) released a statement on the AI chip loophole, saying “On Sunday afternoon, the Trump Administration revealed that its failure to update export control regulations over the last year and a half may have inadvertently allowed America’s most advanced AI chips to flow to companies headquartered in China, potentially fueling China’s military capabilities. The Commerce Department could close the loophole today by issuing clear and comprehensive guidance, instead of standing by as U.S. technology flows to the Chinese military. Secretary Howard Lutnick should testify before the Senate Banking Committee about how his reckless mismanagement of the Commerce Department’s Bureau of Industry and Security is putting our national security at risk.” (Press release)

• Rep. Sara Jacobs (D-CA) said of her Sectoral AI Governance Act, “Federal agencies are not always equipped to be able to enforce those laws when an algorithm is the one making those decisions instead of a human.” (Politico)

• Jacobs also said, “We need to start working on what [Democrats] are going to be able to pass and do when we are in the majority, and this I think is one of the main pillars of that.” (Politico)

• Sen. Mark Kelly (D-AZ) posted “As AI is used more by our military, we’ve got to keep people in control during life and death decisions. Service-members need to be the ones at the center, even during dynamic and complex operations. I introduced two bills today to make sure we get this right.”

• Rep. April McClain Delaney (D-MD) posted “I’ve made it my career to hold Big Tech accountable. In Congress, I’m fighting for legislation that puts responsible guardrails in the new AI economy and ensures companies are held accountable when consumers are harmed. This bill isn’t the answer; we need stronger protections for states, consumers and families, not loopholes that let them operate unchecked.”

• Energy and Commerce Committee posted “The SECURE Data Act is a milestone for American privacy rights. It would: Establish clear expectations for businesses to protect the privacy of users, Guarantee consumers enforceable privacy rights, Require user consent before processing sensitive data. This is the strong, clear national standard Americans have been waiting for. Thank you to CTATech, BizRoundtable, DAAUSA, and the over 60 business associations for their support in ensuring the passage of this legislation.”

What I’m Reading This Week

• Democratic Governance of Frontier AI: A Blueprint for a Federal Framework, OpenAI.

• Why AI’s Transition Period May Disrupt Tax, Tony Santiago, Tax Notes.

• Illinois Legislature passes historic AI bill that would require third-party safety audits, NBC News.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

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Check out our other newsletter, DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy

Shaping the week in AI federal policy, Congress has begun considering who pays when AI disrupts the workforce. Senate Finance Committee Ranking Member Ron Wyden (D-OR) is reportedly exploring a wage-security program for workers displaced by AI, funded by a tax on tech companies. This idea is echoed in op-eds from Sens. Elizabeth Warren (D-MA) and Rep. Greg Casar (D-TX), both pushing versions of an AI tax to fund worker protections.

The House prepares a busy week of hearings spanning privacy law, AI in higher education, and cybersecurity risks from frontier models.

On the regulatory front, NIST announced it has rebranded its AI Safety Institute Consortium, signaling a shift in the administration’s approach to AI governance. OMB issued new cross-agency orders rescinding and replacing a Biden directive on cyber event data reporting and retention.

Read more below

Congress

Hearings

This week

• On June 3, the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade holds a hearing on “Examining Legislation to Establish a Federal Comprehensive Privacy and Data Security Law.”

• On June 3, the House Education and the Workforce Subcommittee on Higher Education and Workforce Development holds the seventh hearing in a series on artificial intelligence, entitled “Building an AI-Ready America: Higher Education in the Age of AI.”

• On June 4, the House Judiciary Subcommittee on Courts, Intellectual Property, Artificial Intelligence, and the Internet holds a hearing on “Medicines and IP: Balancing Innovation and Access.”

• On June 4, the House Homeland Security Subcommittee on Cybersecurity and Infrastructure Protection holds a hearing on “The AI Security Landscape: How Frontier Models, Agentic AI, and AI Coding Tools Are Reshaping Cybersecurity and Critical Infrastructure Resilience.”

Upcoming

• On June 23, the Senate Judiciary Committee will hold a hearing titled “Examining Tech Industry Practices and the Implications for Users and Families: Is This Social Media’s Big Tobacco Moment?” to consider issues including AI safety.

Legislation

• Sens. Rick Scott (R-FL) and Tom Cotton (R-AR) introduced the Blocking CCP Spy Tech Act to require national security officials to make a determination of whether the Chinese Communist Party’s (CCP) tech companies threaten our national security. (Press release)

• Reps. Vern Buchanan (R-FL), Terri Sewell (D-AL) and Suzan DelBene (D-WA) introduced the Semiconductor Superiority Act to amend the Section 48D Advanced Manufacturing Investment Credit to explicitly include property and infrastructure for space-based semiconductor manufacturing. (Text)

Correspondence

• Reps. Dwight Evans (D-PA) and Madeleine Dean (D-PA) sent a letter to the Federal Energy Regulatory Commission requesting information on how the agency is overseeing the increased power demand from data centers and how the Trump administration’s decision to cancel 223 clean-energy projects could impact transmission planning and delivering electricity to consumers due to changes in energy supply. (Press release)

• Sens. Martin Heinrich (D-NM) and Ron Wyden (D-OR) and Rep. Pat Harrigan (R-NC) sent a letter to Department of Defense (DoD) Chief Information Officer Kirsten A. Davies expressing concern about hostile foreign adversaries using commercial location data to target American servicemembers in an active war zone and calling for the DoD to prevent the collection and sale of servicemembers’ personal information, including phone location data. (Letter)

Publications and Events

• Sen. Rick Scott (R-FL) and Rep. Andy Ogles (R-TN) published an op-ed in Breitbart entitled, “America’s Cybersecurity Cannot Be an Easy Target for Communist China.” They say, “If we don’t beat China in cyberspace, any of the scenarios we mentioned earlier could come to pass. That’s why Congress must pass the Strengthening Cyber Resilience Against State-Sponsored Threats Act. This bill creates a joint task force led by the Cybersecurity and Infrastructure Security Agency (CISA) to detect, analyze, and respond to CCP-backed cyber threats like Volt Typhoon. It also mandates that CISA issues annual reports to Congress detailing threat assessments and recommendations to counter these threats.” (Op-ed)

• Sen. Chris Coons (D-DE) published an op-ed in the Daily State News entitled “Country’s economic policies need work,” saying, “Finally, I’ve heard from so many Delawareans about artificial intelligence. When the Chrysler and GM plants closed here — in 2008 and 2009, respectively — it caused a river of loss and anger. Toward the end of the last century, my predecessors in Congress were so focused on the gains from free trade — more affordable goods for every American — that they were blind to its costs in communities across our country. The rise of AI represents a similar turning point for our country. We cannot — we must not — make the same mistake again. AI has the potential to create incredible opportunity for Americans, but we can’t sacrifice your financial security in exchange for that potential. A just policy will ensure that the gains from AI innovation are shared by as many people as possible. It would strengthen our safety net, so it can catch anyone who does lose a job, and it would fund robust training opportunities for those who want to switch into a new field.” (Op-ed)

• Sen. Elizabeth Warren (D-MA) published an op-ed in TIME entitled “Why We Need to Tax AI,” saying “Taxing AI is one way we make sure the winnings from AI benefit all Americans, rather than channeling them only to the wealthy few. If millions of people lose their jobs to AI, we’ll need the funds to deliver universal health care so those workers are not bankrupted by a visit to the doctor. If AI transforms the future of work, we’ll need to invest in free education and apprenticeships and a new jobs guarantee so that all Americans have good-paying work. And while workers get back on their feet, we’ll need the revenue to bolster unemployment insurance to keep families afloat. The only way we can get there is by overhauling our tax code.” (Op-ed)

• Rep. Greg Casar (D-TX) published an op-ed in The American Prospect entitled “Tax AI to Create Jobs,” in which he says, “Taxing AI directly ties the solution directly to the problem. If AI use grows quickly, driving layoffs alongside it, the revenue from an AI tax would go up too. Unlike traditional corporate taxes, an AI tax like the one I am proposing works even if employers fire workers before AI companies show a profit. This AI tax should target the companies that stand to make billions of dollars by laying people off. The tax should be levied on AI providers, not consumers, and it should charge a higher rate for AI used by big corporations rather than individual users.” (Op-ed)

Trump Administration

White House

• The Office of Management and Budget (OMB) issued a memo to all agency heads entitled “Ensuring Effective and Efficient Agency Logging and Network Visibility to Defend Against Evolving Cyber Threats” rescinding and replacing a Biden directive on cyber event data reporting and retention. The new directive takes a “a risk-based, prioritized logging approach.” Additional guidance from CISA will be forthcoming. (Memo)

National Institute of Standards and Technology (NIST)

• NIST announced the retitling of the Artificial Intelligence Safety Institute Consortium (AISIC) to the NIST Artificial Intelligence Consortium, revising the scope of the Consortium’s research, and reissuing its invitation to organizations to submit letters of interest in order to collaborate with NIST, non-profit organizations, industry leaders, universities, and other agencies of the Federal Government “in addressing the challenges associated with the development and deployment of AI-based innovations.” Letters of interest from new organizations will be considered on an ongoing basis; the first period of review will begin within 60 days of the publication of the notice in the Federal Register. (Federal Register)

Commerce Department

• On June 2, the Bureau of Industry and Security holds an open meeting of the Emerging Technology Technical Advisory Committee for public comments and/or industry presentations and a closed discussion of strategies and potential revisions to export control policies.

National Science Foundation (NSF)

• The NSF published a notice that it has renewed the committee for Information and Intelligent Systems (Federal Register), the committee for Cyberinfrastructure (Federal Register), and other related committees.

Noteworthy Quotes and Events

ADMINISTRATION

Federal Reserve

• Governor Lisa Cook delivered remarks at the Stanford Institute for Economic Policy Research entitled “The Opportunities and Risks AI Presents for the Economy and Financial System,” concluding “The totality of our experience with AI leads us to the conclusion that, alongside experimentation, strong governance and risk management must be our foundation. The most promising approaches augment human judgment with AI capabilities while building verification into the architecture itself. The urgency is real. AI is advancing rapidly, and financial institutions are adopting these technologies apace. As policymakers, we must understand these systems through hands-on experience. By building our own AI capabilities, we gain invaluable insights into both the promise and risks these technologies bring to the financial system. With appropriate governance frameworks, autonomous intelligence can potentially expand our analytical capabilities. These tools could enhance our capacity to identify and respond to evolving threats. But we proceed with both optimism and caution, as warranted at this moment of a technological inflection point.” (Remarks)

CONGRESS

Memory Chip Shortage

• Sen. Bernie Moreno (R-OH) said, “My point of view is that the American company should supply American producers before they start selling any of them overseas.” (Punchbowl)

• Rep. Darrell Issa (R-CA) said, “What we could do is expedite the electricity, expedite water projects.” (Punchbowl)

• Rep. Mike Lawler (R-NY) said, “From a CHIPS standpoint, we expedite the process and from a regulatory standpoint, if there are things that need to be done to cut some of the red tape that is slowing this down.” (Punchbowl)

Obernolte-Trahan Bipartisan AI Partnership

• Regarding her partnership with Obernolte on comprehensive AI regulation, Rep. Lori Trahan (D-MA) said, “I think it’s not a mystery what I’m fighting for in these conversations. Safety is paramount; our kids, our national security, innovation. … We think the moment requires it.” She added, “Suppose there is a catastrophic event or suppose there is a disruption to an employer where people are laid off because you weren’t at the table, we weren’t having these conversations. Like, how do I look folks back in the eye and say, ‘Oh yeah, we were just waiting until we had the gavels.’” (Politico)

• Trahan also said, “I’ve been very happy to work with Jay. … I like the way the conversations are progressing, and, you know, I’m hopeful that we can share something soon….The stakes are too high for us to rush it and they’re too high for us to get it wrong.” (Politico)

• On Trahan’s work with Obernolte, Rep. Ted Lieu (D-IL) said, “I know very little about what she and Obernotle are discussing. I have not been read in. We’re focused on building a framework for Leader Jeffries before the end of the year on what Democrats should focus on after we flip the House. But members can do whatever they want. I haven’t followed [Trahan] — I literally have no idea what language even looks like or if they’ve even talked about language.” (Politico)

• Democratic Leader Hakeem Jeffries (D-NY) said, “I haven’t talked to Lori Trahan about it.” (Politico)

• Rep. Sam Liccardo (D-CA), who recently broke with Obernolte on federal preemption, said, “We’re all interested in trying to find a framework that makes sense. Jay is open-minded, but he has constraints on his side of the aisle, and it makes it very difficult to find openness.” (Politico)

Miscellaneous

• Sen. Elizabeth Warren (D-MA) posted “AI was trained on generations of human knowledge and work. Now Big Tech is making billions from it. It’s time to tax AI and make sure the American people benefit from what they helped build.”

• Rep. Greg Casar (D-TX) posted “With AI, we’re in the middle of the greatest technological transformation of our lifetimes. My new plan: a tax on AI companies that funds new jobs — so the unemployment rate does not rise. Progress should benefit everyone, not just a few billionaires.”

• Casar also posted “The government is doing nothing to stop AI from taking your job. Nothing to stop AI from exploiting your kid. Nothing to stop AI from giving advice to terrorists. Because AI companies are spending hundreds-of-millions through Super PACs. That has to change.”

• On President Trump’s abrupt cancellation of his AI executive order, Rep. Jay Obernolte (R-CA) said, “I think it’s an indication that the White House is having as much trouble as the rest of us are in making sure that they achieve the right balance when it comes to AI regulation.” (Punchbowl)

• On transparency requirements for AI companies, Obernolte said, “[It] gives a window for everyone to see what’s being done and how the risks are being controlled. I think that’s a good thing… Compliance with one person’s idea of what’s safe or not safe, maybe that’s something that gets more in the territory of being voluntary.” (Punchbowl)

• Rep. Andy Ogles (R-TN) posted “AI can hack and destroy infrastructure just as fast as it can make animated fruit videos. I’m getting some folks together so we can defend against this.”

• Sen. Jeff Merkley (D-OR) posted “Dystopian: the Trump Administration wants to use smart glasses to invade your privacy, scan your face and biometrics without your knowledge, and threaten your civil rights. HELL NO! I’m fighting back—we need to protect our fundamental right to privacy.”

What I’m Reading This Week

• What’s the Problem with Quantum Noise?, Lawrence Berkeley National Laboratory.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

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President Trump was expected to sign a highly anticipated executive order establishing a voluntary oversight framework for advanced AI systems, under which developers could submit models for federal review up to 90 days prior to public release. However, the signing was abruptly canceled at the last minute, surprising many administration officials.

The President reportedly raised concerns that the framework could slow U.S. AI development and risk evolving into a de facto mandatory regime, following a meeting in which White House adviser David Sacks expressed industry objections. While the order may be revised and reissued, there is little clarity on the path forward.

The draft order also would have designated the Treasury Department to coordinate with AI companies on identifying cyber vulnerabilities in critical infrastructure, a provision that has reportedly created tension between Treasury Secretary Scott Bessent and Director of National Intelligence Sean Cairncross.

Meanwhile, the Treasury Department is considering a proposal to significantly extend the amount of time taxpayers’ biometric data can be held by third-party contractor ID.me. At NIST, the Hollings Manufacturing Extension Partnership (MEP) announced a competitive pilot program for existing MEP centers to accelerate the adoption and commercialization of advanced manufacturing technologies that enhance the competitiveness of the domestic industrial base. Also, EXIM launched the ExportAI Initiative to strengthen U.S. global competitiveness and accelerate the export of American artificial intelligence technologies by deploying American AI at scale.

Read more below

Congress

Hearings

Last week

• On May 19, the Senate Armed Services Emerging Threats and Capabilities Subcommittee held a hearing on “The Science and Technology Priorities in Review of the Defense Authorization Request for FY2027 and the Future Years Defense Program.”

• On May 19, the House Select Strategic Competition Between the United States and the Chinese Communist Party Committee held a hearing on “Crime, Corruption, and Power: The Rise of CCP-linked Scam Networks Targeting Americans and Threatening U.S. Security.”

• On May 20, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee held a hearing on “Partnering for Innovation: How Bank-Fintech Collaborations Enhance Financial Infrastructure.”

• On May 21, the House Homeland Security Cybersecurity and Infrastructure Protection Subcommittee held a hearing on “State and Local Cybersecurity: Escalating Threats, Federal Partnership, and the Resilience of America’s Communities.”

Upcoming

• On June 23, the Senate Judiciary Committee will hold a hearing titled “Examining Tech Industry Practices and the Implications for Users and Families: Is This Social Media’s Big Tobacco Moment?” to consider issues including AI safety.

Legislation

• The Senate passed the Stop Stealing our Chips Act, sponsored by Sens. Mike Rounds (R-SD) and Mark Warner (D-VA), to require BIS to create a public, secure platform for submitting whistleblower reports, establish a fund to cover whistleblower rewards and program operations, and provide confidentiality guarantees and anti-retaliation safeguards to protect whistleblowers. (Press release)

• The House Committee on Small Business passed the SBA Artificial Intelligence Utilization Act to require the Small Business Administration (SBA) Administrator to submit an annual report to Congress on the agency’s use of artificial intelligence and machine learning. The bill was sponsored by Reps. Brad Finstad (R-MN) and George Latimer (D-NY). (Press release)

• Sens. Ted Budd (R-NC), Jim Banks (R-IN), Catherine Cortez Masto (D-NV), Mike Rounds (R-SD), Lisa Blunt Rochester (D-DE), and Adam Schiff (D-CA) introduced the Fostering Agricultural Research and Modernization through Artificial Intelligence (FARM AI) Act to increase capital for AI projects through U.S. Department of Agriculture (USDA) grants and ensure USDA programs are deployed to educate farmers on the latest AI technologies to advance American production. (Text)

• Reps. Suzan DelBene (D-WA), Vern Buchanan (R-FL), and Terri Sewell (D-AL) introduced the Semiconductor Superiority Act to amend the Section 48D Advanced Manufacturing Investment Credit to explicitly include property and infrastructure for space-based semiconductor manufacturing. (Text)

• Sens. Kirsten Gillibrand (D‑NY), Ron Wyden (D-OR), Patty Murray (D‑WA), Maria Cantwell (D‑WA), and Richard Blumenthal (D-CT) and 20 additional Senate Democrats introduced a resolution to end a Trump administration program allowing AI to conduct prior authorizations in Medicare medical claims. A House companion resolution was introduced by Reps. Greg Landsman (D-OH) and Suzan DelBene (D-WA). (Resolution)

• Reps. María Elvira Salazar (R-FL) and Madeleine Dean (D-PA) reintroduced the Support the Nurture Originals, Foster Art, and Keep Entertainment Safe (NO FAKES) Act to protect Americans’ voice and visual likeness from unauthorized digital replicas created without their consent through artificial intelligence. Companion legislation was introduced in the Senate by Sens. Marsha Blackburn (R-TN) and Chris Coons (D-DE). (Text)

• Sen. Ben Ray Luján (D-NM) and Rep. Doris Matsui (D-CA) introduced the Digital Opportunity Foundation Act to establish a nonprofit foundation that would leverage public and private investments to expand digital opportunity nationwide, ensuring that people can access, adopt, and effectively use modern digital tools, broadband, and other emerging technologies. (Text)

• Reps. Valerie Foushee (D-NC), Brian Fitzpatrick (R-PA), and Don Beyer (D-VA) and Del. James Moylan (R-GU) introduced a bill to require the National Institute of Standards and Technology to establish task forces to facilitate and inform the development of technical standards and guidelines relating to the identification of content created by generative artificial intelligence. (Text)

• Senate Foreign Relations Committee Ranking Member Jeanne Shaheen (D-NH) and Sen. Pete Ricketts (R-NE) introduced the U.S. Technology Procurement and Access to Trusted Hardware (U.S. Tech PATH) Act to establish a State Department-led program to streamline the procurement of U.S. cyber and digital technologies by foreign allies and partners and to ensure that U.S. missions abroad in participating countries are staffed with the relevant experts in cyber and digital technologies. (Text)

• Rep. Deborah Ross (D-NC) introduced the Protect Working Musicians Act to give small independent artists and music creators the power to collectively negotiate with both streaming platforms and generative artificial intelligence developers for fair compensation. (Text)

Correspondence

• Sens. Martin Heinrich (D-NM) and Ron Wyden (D-OR) and Rep. Sara Jacobs (D-CA) sent letters to the U.S. Department of Justice (DOJ) and Director of National Intelligence (DNI) expressing concern regarding the government’s failure to prevent the sale to China, Iran, and other adversaries of location data collected from Americans’ phones. (Letter)

• Senate HELP Committee Chair Bill Cassidy (R-LA) sent a letter to Hims & Hers CEO Andrew Dudum requesting information about a recent data breach and the company’s cybersecurity protocols. (Letter)

Publications and Events

• Sen. Mark Kelly (D-AZ) published an article on Substack responding to President Trump’s decision not to sign his AI executive order. (Substack)

• The Government Accountability Office (GAO) released a report on Privacy-Enhancing Technologies (PETs). (Report)

Trump Administration

White House

• President Trump canceled the signing of an executive order that would have created a voluntary oversight system in which developers of advanced AI models could submit their products to a review by federal agencies as much as 90 days before releasing them. The order could still be rewritten, but the path forward is unclear. (Politico)(Draft Executive Order)

Treasury Department

• The Treasury Department is considering a proposal to extend the amount of time taxpayers’ biometric data can be held by third-party contractor ID.me. Currently, the IRS website states that data is automatically deleted, while other sources say the data must be deleted within 24 hours. The proposal under consideration would allow biometric data to be retained by ID.me for as long as the taxpayer’s account is open and 36 months after the account is deleted. (Politico)

• On June 16, the Internal Revenue Service will hold a meeting of the Electronic Tax Administration Advisory Committee to discuss technology and data sharing, and artificial intelligence and human-centered design.

Cybersecurity & Infrastructure Security Agency (CISA)

• CISA published a form for private sector tech vendors and experts to report the risk of hackers exploiting vulnerabilities. (Form)

National Institute of Standards and Technology (NIST)

• The Hollings Manufacturing Extension Partnership (MEP) at NIST announced a competitive pilot program for existing MEP centers to accelerate the adoption and commercialization of advanced manufacturing technologies that enhance the competitiveness of the domestic industrial base. Two manufacturing technology topics have been identified for the pilot program: (1) additive manufacturing for aerospace components; and (2) a domestic critical minerals supply chain. NIST published a Notice of Intent to allow applicants time to develop proposal strategies and establish collaborations among industry, academic, Federal laboratory, and state/local government partners. (Federal Register)

Export-Import Bank of the United States (EXIM)

• EXIM launched the ExportAI Initiative to strengthen U.S. global competitiveness and accelerate the export of American artificial intelligence technologies by deploying American AI at scale by leveraging Department of Commerce-designated AI exports to fast-track the global deployment of trusted U.S. technologies before our competitors can gain ground, and unlocking new markets for American exporters by broadening EXIM’s financing reach with bold new pathways purpose-built for the strategic AI transactions. (Press release)

Noteworthy Quotes and Events

ADMINISTRATION

White House

• President Trump said about his aborted executive action, “I was hearing concerns, but I was also seeing the concerns myself. I have concerns about it, and I don’t want to approve anything until it’s done properly… I want the industry to be able to continue to win, we’re leading by a lot over China and everybody else, and I want to continue, and I felt it was inhibiting the industry.” (Politico)

• On White House adviser David Sacks’ role in persuading President Trump not to sign the executive order, a White House official said, “Then, he called POTUS this morning unbeknownst to anybody, his own staff included, and derailed it.” (Politico)

• On the outsized role Treasury Secretary Scott Bessent is playing in the development of AI policy, an Administration official said Bessent is “way more involved in this than I ever could’ve imagined” and his involvement “seemed to grow over the course of the last month after the Office of the National Cyber Director made their initial moves, which were not well received.” (Politico)

• In defense of National Cyber Director Sean Cairncross, a White House spokesperson said, “Sean Cairncross and the entire administration are doing excellent work to protect the American people and our nation’s critical infrastructure while also promoting innovation.” (Politico)

• The White House posted “President Trump’s Ratepayer Protection Pledge is putting America first. He’s calling on the nation’s leading AI companies to build, bring, or buy 100% of the energy they need for their data centers. No more sticking Americans with the bill.”

Treasury Department

• An anonymous IRS employee said of the proposal to extend biometric data retention by ID.me, “The 36-month period after account deletion is scary. How many email accounts have you requested be deleted because you stopped using them? My Hotmail account from my high school days is still active even though I don’t use it.” (Politico)

• An IRS spokesperson said, “The IRS has acknowledged that privacy considerations are the reason the Service currently limits ID.me’s biometric data-retention policy for IRS users.” (Politico)

Department of Defense

• U.S. Cyber Command launched a new task force with the NSA to study how the Pentagon can deploy private-sector AI models in all aspects of its missions, including “high-side” systems leveraging the most sensitive intelligence. (Politico)

CONGRESS

AI Executive Order Cancellation

• Sen. Richard Blumenthal (D-CT) posted “The Trump admin realizes the risks from AI—but then Big Tech pushes back. Pulling away from even voluntary oversight after pressure from industry insiders sends a clear message: billionaire influence still outweighs jobs, national security & accountability. Huge Coincidence? Humongous AI investor SoftBank donated $50 million to Trump’s presidential library & foundation just before Trump withdrew his AI regulatory Executive Order. Brazen corruption seemingly without bounds.

• Sen. Mark Kelly (D-AZ) posted “Trump folded on AI – here’s why that matters: Artificial intelligence is moving fast. Faster than most people in Washington are prepared for. It is already changing how people work, how companies operate, how our kids learn, and how countries compete. Powerful, disruptive technology needs serious leadership. That’s why President Trump’s decision to walk away from his own AI executive order this week is such a failure. Not because the order was perfect – it was not. From what has been reported, it would have created a voluntary process for government agencies to evaluate some frontier AI systems for risks and vulnerabilities before public release. I don’t think that goes nearly far enough for a technology changing this rapidly, but even that modest step was apparently too much once a few powerful tech executives pushed back. That should bother everyone. America cannot lead in AI if our policy is determined by whichever billionaire gets the President on the phone last. We need a strategy that supports innovation, protects workers, strengthens national security, and makes sure this technology benefits the country, not just a handful of big tech companies. I have spent a lot of my life around advanced technology. In the Navy, at NASA, and now in the Senate, one thing is clear: when the stakes are high, you do not just hope everything works out. You test. You plan. You ask hard questions. You build safeguards. That is not anti-innovation. That is how serious people handle serious systems and innovate responsibly. AI is going to shape the future of work, our energy grid, cybersecurity, and our competition with China. Getting this right matters for families in Arizona and across the country. We should want American companies to lead the world. But we don’t do that by prioritizing short-term company profits above all else. We need to make sure AI tools are deployed safely and responsibly. The President had a chance to show that he understands that. Instead, when powerful billionaires got him on the phone, he backed down. That is a failure. We can do better than that. And we have seen why we can’t rely on the whims of a president to do that. To truly lead, Congress needs to get in the game with real, forward-looking policy on AI. Read my AI for America plan with some of my ideas for how Congress can do just that.”

• Rep. Yvette Clarke (D-NY) posted “Donald Trump’s concern for the health of the AI industry begins and ends with the wealth of those at its top. This EO was not delayed due to its many flaws, but because his Big Tech buddies demanded that it be. These billionaires will always put profit over progress. The president will always follow their orders. And that will always be bad for America.”

Miscellaneous

• On the retention of biometric data by ID.me, Sen. Mark Warner (D-VA) said, “Following abuses of taxpayer privacy under the Nixon Administration, Congress established and has maintained a robust set of laws safeguarding taxpayers’ personal information. Taxpayer privacy is critically important, and the IRS should take the utmost care to safeguard taxpayer biometric data.” (Politico)

• Rep. Nancy Mace (R-SC) called for a one-year moratorium on new data center construction in South Carolina, saying, “South Carolina is not Big Tech’s personal power grid. These companies are planting massive data centers across our state, driving up energy demand, and leaving families and small businesses to pick up the tab. South Carolinians are already stretched thin. The last thing they need is a higher electricity bill subsidizing Big Tech’s bottom line. A one-year moratorium gives South Carolina the chance to get this right. When it is over, the rules are simple: data centers pay their own way or they do not come here. We don’t want to see eminent domain like what’s happening in Georgia, either.” (Press release)

• On proposed Democratic amendments regarding data centers under consideration during the House Appropriations Committee markup of the fiscal year 2027 Energy-Water bill, Rep. Marcy Kaptur (D-OH) said the “New AI and data facilities are causing energy and water prices to skyrocket. The American people are feeling the pinch. This Congress has an obligation to defend our people — not stick our heads in the sand or pretend it’s 1946.” (Politico)

• On the potential to add the MATCH Act, Chip Security Act, AI OVERWATCH Act to the NDAA, House Foreign Affairs Chair Brian Mast (R-FL) said, “One of the biggest games in town is always the National Defense Authorization Act.” (Politico)

• In the House Select Strategic Competition Between the United States and the Chinese Communist Party Committee hearing on “Crime, Corruption, and Power: The Rise of CCP-linked Scam Networks Targeting Americans and Threatening U.S. Security,” Rep. Darin LaHood (R-IL) said, “Time and time again, victims of fraud and scams wait years before receiving compensation, and criminals who engage in this predatory behavior obviously must be prosecuted to the fullest extent of the law, and victims must be made whole in a timely manner, with increased access to digital infrastructure and advanced technological tools like cryptocurrency and artificial intelligence and fraud, the fraud ecosystems that currently exist, they continue to wreak havoc in many ways on our system, and there is not a, I guess, a good one size fits all approach on how we coordinate on this issue, but I do think it’s fair to say that Congress must ensure we provide the necessary resources and tools to our federal agencies in order to keep up with the evolving scam ecosystem.”

• Sen. Mark Kelly (D-AZ) posted “Some reports say we could see 12 million job transitions in the next five years as a result of AI. If we don’t plan now, some Americans may struggle to find consistent, good-paying jobs. My plan: prepare young Americans for an AI economy and rethink how we help workers whose jobs change or who get laid off.”

• Rep. Nick Langworthy (R-NY) posted “Because of the ingenuity of our great nation, we went from the stagecoach to SpaceX rockets landing themselves in less than 200 years. We also went from Morse Code to AI. Since American innovation is unmatched, there is no excuse for outdated and barbaric animal testing.”

• Sen. Bernie Sanders (I-VT) posted “Question for Musk: You tell us not to worry about the jobs that’ll be wiped out by AI & robotics because the government will provide everyone with “universal high income.” Really? How will that be paid for when you can’t even support a 5% tax on your $817 billion in wealth?”

• Sen. Marsha Blackburn (R-TN) posted “Glad to see FTC hold Cox Media Group accountable for using AI to listen to users’ phone conversations. I sent a letter to Cox and its clients (Meta and Google) demanding answers for this egregious invasion of privacy when it first came to light in 2024.”

• Sen. Chris Coons (D-DE) posted “Whether you’re an Emmy winner like Noah Wyle or an eighth grader in Wilmington, you deserve to have your voice and likeness protected from unauthorized AI deepfakes. I’m glad to have the support of Noah and sagaftra for my bipartisan NO FAKES Act.”

• Rep. Chip Roy (R-TX) posted “Rep. Roy’s Retake of America Day 5: The POWER Act directs the Energy Department to collect and report to Congress the amount of water and energy that large AI data centers use. States like Texas have been enduring extreme drought conditions for years. As Big Tech moves to build out AI infrastructure in the driest parts of our state, we MUST have a full and accurate understanding of how much energy and water these data centers use before giving these facilities tax and permitting advantages.”

• Rep. Valerie Foushee (D-NC) posted “AI chatbots are putting the lives of children across the country at risk right now. Congress must establish criminal penalties immediately for companies that allow children to access harmful content through these chatbots.”

• Sen. Bernie Sanders (I-VT) posted “I appreciate Mr. Andreessen’s honesty. The oligarchs are making it clear they want to replace human workers with AI & robots and could care less about the suffering they cause. Sorry, Mr. Andreessen: You’re waging war against the working class & we will make sure you will lose.”

• Rep. David Schweikert (R-AZ) posted “Health care fraud should not be hiding in a fax machine. If we are going to use AI to find waste and fraud, the data has to come in electronically. Give the tools usable data, and we can find bad actors faster before taxpayers get stuck with the bill.”

• Rep. Deborah Ross (D-NC) posted “Independent musicians are largely powerless to negotiate fair prices for their work from AI and streaming platforms. My bill, the Protect Working Musicians Act, allows independent artists to band together to negotiate fair compensation for their work.”

• Sen. Ted Budd (R-NC) posted “AI is advancing at a rapid pace, and if we fail to address the barriers to its deployment in agriculture, America’s producers will fall behind. I am proud to be leading the bipartisan FARM AI Act to unlock the untapped potential of AI to advance American agriculture.”

What I’m Reading This Week

• To A.I. Executives, We’re All Just ‘Meat Computers’, Lora Kelley, The New York Times.

• Inside the British Lab Hunting for Dangers Lurking in A.I., Adam Satariano and Paul Mozur, The New York Times.

• One Job That Is Growing in the A.I. Era? Cybersecurity Experts, Kate Conger, The New York Times.

• A.I. Bots Told Scientists How to Make Biological Weapons, Gabriel J.X. Dance, The New York Times.

• I’m the C.E.O. of Goldman Sachs. The A.I. Job Apocalypse Is Overblown, David Solomon, The New York Times.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

Check out our other newsletter, DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy

President Trump traveled to China alongside senior Administration officials and tech executives for a high-stakes summit with Chinese President Xi Jinping, where artificial intelligence featured prominently on the agenda. Previous reports suggested that U.S. and Chinese officials would discuss establishing an “AI hotline,” akin to Cold War–era nuclear risk-reduction channels, aimed at preventing miscalculation as the two countries compete on advanced technologies. Following the meetings, Trump confirmed that AI safety guardrails were a topic of discussion, though he offered few details on any concrete outcomes.

Back in Washington, the Administration is reportedly weighing an executive order to stand up a formal AI working group that would convene government officials and private-sector leaders to shape formal AI safety frameworks. Early discussions suggest a model similar to the United Kingdom’s emerging approach, which distributes responsibility across multiple agencies to evaluate AI systems against safety benchmarks, drawing comparisons to the FDA’s pre-market review process for pharmaceuticals. While earlier drafts were said to contemplate mandatory government testing of frontier AI models, the current direction appears to favor voluntary information-sharing partnerships focused on cybersecurity and risk mitigation.

Read more below

Congress

Hearings

Last week

• On May 13, the Senate Armed Services Cybersecurity Subcommittee held a closed briefing on cyber operations and readiness for the fourth quarter of FY2025 and the first quarter of FY2026.

• On May 13, the House Education and the Workforce Subcommittee on Workforce Protections held a hearing on Private-Sector Strategies for Emerging Safety Issues.

• On May 14, the House Armed Services Subcommittee on Cyber, Information Technologies, and Innovation held a hearing on the Science, Technology, and Innovation Posture of the Department of Defense.

This week

• On May 19, the Senate Armed Services Emerging Threats and Capabilities Subcommittee holds a hearing on “The Science and Technology Priorities in Review of the Defense Authorization Request for FY2027 and the Future Years Defense Program.”

• On May 20, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on “Partnering for Innovation: How Bank-Fintech Collaborations Enhance Financial Infrastructure.”

• On May 21, the House Homeland Security Cybersecurity and Infrastructure Protection Subcommittee holds a hearing on “State and Local Cybersecurity: Escalating Threats, Federal Partnership, and the Resilience of America’s Communities.”

Upcoming

• On June 23, the Senate Judiciary Committee will hold a hearing titled “Examining Tech Industry Practices and the Implications for Users and Families: Is This Social Media’s Big Tobacco Moment?” to consider issues including AI safety.

Legislation

• The House Financial Services Committee passed the Fostering the Use of Technology to Uphold Regulatory Effectiveness in Supervision Act, AI PLAN Act, GUARD Act, Unleashing AI Innovation in Financial Services Act, Price Stability Act, FUTURES Act, and Bank Fraud Technology Advancement Act.

• Reps. Ted Lieu (D-CA), Zach Nunn (R-IA), Don Beyer (D-VA), and Marcus Molinaro (R-NY) introduced the Federal Artificial Intelligence Risk Management Act to require federal agencies to use NIST’s AI risk management framework when acquiring AI solutions. The Senate version was introduced in November by Sens. Jerry Moran (R-KS) and Mark Warner (D-VA). (Text)

Correspondence

• Reps. Mike Lawler (R-NY) and Josh Gottheimer (D-NJ) sent a letter to the CEOs of OpenAI, Google, Microsoft, Anthropic, Meta, Perplexity, and X Corp. requesting information about how companies are addressing political bias, misinformation, transparency, and source reliability in large language models ahead of the upcoming election cycle. (Letter)

• House Energy and Commerce Ranking Member Frank Pallone (D-NJ) sent letters to Albertsons, Aldi, Amazon, BJs, Costco, CVS, Dollar General, Dollar Tree, Family Dollar, Food Lion, Giant Food, Hannaford, H-E-B, Key Food, Kroger, Publix, Sam’s Club, ShopRite, Stop & Shop, Target, The Giant Company, Walgreens, Walmart, Wegmans, and Whole Foods requesting information about corporate surveillance pricing practices. (Text)

• Sen. Jim Banks (R-IN) sent a letter to the officials accompanying the President to China, urging them to narrow the focus of their AI-related talks with China rather than aim for a “grand bargain.” (Letter)

• Rep. Bob Latta (R-Ohio) led a bipartisan group of 35 lawmakers in a letter to National Cyber Director Sean Cairncross calling for expanded access to AI tools like Mythos for identifying cyber vulnerabilities and requesting the federal government assist private-sector software companies to secure those vulnerabilities. (Letter)

• Sens. Ed Markey (D-MA.), Jeff Merkley (D-OR) Cory Booker (D-NJ), Adam Schiff (D-CA), Alex Padilla (D-CA), Brian Schatz (D-HI), Ron Wyden (D-OR) Chris Murphy (D-CT), Chris Van Hollen (D-MD) and Richard Blumenthal (D-CT) sent a letter to Department of Homeland Security (DHS) Secretary Markwayne Mullin demanding the agency abandon a plan to develop smart glasses for its immigration officers that would allow them to identify individuals in public by covertly taking their photo and running it through biometric identification systems. (Letter)

Publications and Events

• House Select Committee on the CCP Democrats released their priorities for U.S. discussions with China ahead of the Trump–Xi summit. (Press release)

• The House Homeland Security Committee held the first live demonstration of Mythos for members of Congress during a partially classified briefing. (Punchbowl)

Trump Administration

Commerce Department

• On June 2, the Bureau of Industry and Security holds an open meeting of the Emerging Technology Technical Advisory Committee for public comments and industry presentations, followed by a closed meeting on U.S. government strategies and potential revisions to export control policies.

National Institute of Standards and Technology (NIST)

• This summer, NIST is expected to release guidance on artificial intelligence-specific cybersecurity to help mitigate AI-enabled cyber threats, with overlay guidance focused on cyber threats targeting agentic, predictive and generative AI systems. (Nextgov/FCW)

Noteworthy Quotes and Events

ADMINISTRATION

White House

• Despite the Commerce Department approving export licenses for the chips, President Trump said China has not purchased NVIDIA chips, saying “They want to try and develop their own.” (Punchbowl)

• On discussions between the U.S. and China on AI safety, President Trump said of his meeting with President Xi “We talked about possibly working together for guardrails.” On specifics, he said, “guardrails that we talk about all the time.” (The Hill)

• Trump also said, “AI is fantastic. So many things can happen in terms of health, medicine and operations, everything … military. So many things can happen, but it’s also got some drawbacks and we’re talking about … we probably will, we’re going to work together.” (The Hill)

• On an executive order to allow the Trump Administration to block the release of AI models deemed unsafe, National Economic Council Director Kevin Hassett said, “We’re studying possibly an executive order to give a clear roadmap to everybody about how this is gonna go, and how future AIs that also potentially create vulnerabilities should go through a process so that they’re released into the wild after they’ve been proven safe — just like an FDA drug.” (Politico)

• White House Chief of Staff Susie Wiles posted, “President Trump is the most forward leaning president on innovation in American history. When it comes to AI and cyber security, President Trump and his administration are not in the business of picking winners and losers. This administration has one goal; ensure the best and safest tech is deployed rapidly to defeat any and all threats. We appreciate the effort being made by the frontier labs to ensure that goal is met. The White House will continue to lead an America First effort that empowers America’s great innovators, not bureaucracy, to drive safe deployment of powerful technologies while keeping America safe. Really, it’s common sense!”

• The White House posted “’From child exploitation cases to mass shooting prevention, the bureau’s AI overhaul is delivering record-breaking results.’ – FBIDirectorKash”

U.S. Trade Representative

• U.S. Trade Representative Jamieson Greer said of China’s view of U.S. semiconductors, “They often see U.S. high tech sometimes as a threat to them. If we’re ahead of the game, like we are on AI chips, sometimes they feel that can stop their own growth.” (Punchbowl)

Treasury Department

• Treasury Secretary Scott Bessent said of U.S.-China discussions on AI safety, “The two A.I. superpowers are going to start talking. We’re going to set up a protocol in terms of, how do we go forward with best practices for A.I. to make sure nonstate actors don’t get ahold of these models.” Bessent added that the U.S. is willing to engage with China because “the Chinese are substantially behind us.” He continued, “I do not think we would be having the same discussions if they were this far ahead of us. So we’re going to put in U.S. best practices, U.S. values, on this, and then roll those out to the world.” (NY Times)

• On pending AI-specific cybersecurity guidance, Victoria Pillitteri, manager of the Security Engineering and Risk Management Group at NIST, said, “This [administration’s] priority is speed; being innovative and scaling at speed. So that means everything does have to move faster. We’re trying to evolve the way that we develop, maintain and engage with our stakeholders. For our standards and guidelines, we’re trying to ensure that we are addressing these critical areas where cybersecurity intersects AI on multiple fronts.” (Nextgov/FCW)

Federal Reserve

• In remarks at the Federal Reserve Bank of Kansas City 2026 Future of Banking Conference, Vice Chair for Supervision Michelle Bowman said, “Turning to emerging challenges like artificial intelligence, custody of digital assets, and evolving payment systems, the Fed’s role is to understand and encourage risk management of the use of these technologies. Genuine collaboration is critically important—where supervisors bring risk-management perspective and regulatory expertise, and bankers bring market knowledge and a deep understanding of customer needs.” (Remarks)

Commodity Futures Trading Commission (CFTC)

• CFTC Chair Mike Selig posted “Under my chairmanship, the CFTC is ready to regulate the new frontier of finance. Our Innovation Task Force is hard at work ensuring those developing the next generation of blockchain technologies, AI, prediction markets, and more have good reason to build them in America.”

CONGRESS

China

• Sen. Chuck Schumer (D-NY) posted “Trump’s moving forward with his plan to sell AI chips to Chinese companies linked to the Chinese military. Giving China access to this premier US technology is dangerous and threatens our lead in the AI race that will shape the global economy for decades.”

• Rep. Jake Auchincloss (D-MA) posted “Biotech needed to be negotiated at this summit, not just AI.”

• Rep. Gabe Amo (D-RI) posted “Trump’s corruption is a national security threat. The President of the United States bought millions in NVIDIA stock, then approved advanced AI chip sales to China. He’s sacrificing America’s technological edge and cashing in doing it.”

• Rep. Don Beyer (D-VA) posted “Trump bought hundreds of thousands of dollars worth of stock in another AI company, AMD, beginning on January 6. The Department of Commerce authorized AMD to sell their chips to China a week later.”

• Beyer also posted “On January 6th of this year Trump bought up to $1 million of Nvidia stock. One week later- Fox Business: ‘Trump administration greenlights Nvidia AI chip exports to China’ Trump went on to make more extremely well-timed purchases of Nvidia stock.”

• Sen. Chris Murphy (D-CT) posted “Trump seemed to confirm he made a quiet deal to sell more advanced AI chips to China. That’s a disaster that undermines our own high tech economy and gives China an advantage in the race for AI supremacy.”

• Murphy also posted “Trump’s China summit could be a disaster. Why? First, CORRUPTION (his billionaire backers want him to do deals that help them and hurt us). Second, THE STRAIT (Trump could sell out our security to get China to help clean up his Iran mess). 2/ THE BALLROOM AND MICROCHIPS: It should be a national security priority to not sell our advanced AI chips to China. But the tech CEOs who have supported Trump’s ballroom want him to agree at this summit to hand them over. Huge risk. 3/ National security watchers were relieved when NVIDIA CEO Jensen Huang, a huge ballroom donor, originally wasn’t on the presidential plane to Beijing - a sign that chip sales wouldn’t be on the agenda - but then Trump personally insisted he join. 4/ TRUMP FAMILY GRIFT: Eric Trump - who runs the Trump crypto empire - is there too. He’s in bed with Bitmain, a Chinese company DHS investigated over their machines being used to spy on us and compromise our power grid. Is Eric there to do deals. 5/ AI SAFETY: A disaster this isn’t on the table. The U.S. and China could be working to set basic guardrails for both countries to protect kids and jobs. But again, Trump is doing the bidding on the tech billionaires who don’t want this on the agenda. 6/ FENTANYL: This won’t be on the agenda either likely. Trump is going to have to use whatever leverage he has to get China to help on the Iran War, so he can’t push them to stop supplying the materials to the drug gangs that make fentanyl. 7/ TAIWAN: Same problem as fentanyl. Will Trump sell out Taiwan’s security to get China’s help to reopen the Strait of Hormuz? Again, Trump creates a mess and then has to sell out our security interests to get other countries to help clean it up.”

• Sen. Elizabeth Warren (D-MA) posted “Trump brought the NVIDIA CEO on his trip to China to lobby Xi Jinping to buy advanced AI chips, even though it would create a U.S. national security threat. It turns out Trump also bought millions in NVIDIA’s stock. The President’s corruption is a national security disaster.”

• House Homeland GOP posted “China has spent years stealing American secrets, burrowing into our critical infrastructure, and taking advantage of vulnerabilities in our systems. But now advanced AI models can be utilized to find vulnerabilities before our adversaries do. Whoever leads in AI leads the future, and we cannot afford to fall behind.”

• Sen. John Cornyn (R-TX) posted “Taiwan Is the Key to AI Dominance”

• Sen. Dave McCormick (R-PA) posted “As POTUS heads to China, the stakes couldn’t be higher. China is vying to displace America as the global superpower. On Iran, AI, trade, rare earths, and American jobs, America needs results and reciprocity. I applaud the President’s diplomacy.”

• Sen. Jim Banks (R-ID) posted “President Trump is right to push for an AI strategy that keeps America ahead of China while putting real guardrails in place against serious risks. As President Trump meets with Xi, AI talks with China should focus on common sense steps that make America safer, even if we have to take those steps on our own.”

• Banks also posted “Good to be back at RepublicanStudy committee today to talk with House conservatives about my AI Overwatch Act and the importance of beating China in the AI race. Chairman RepPfluger is doing a great job leading this important group!”

Miscellaneous

• Following the House Homeland Security Committee Mythos demonstration, a committee aide said, “What we saw reinforced the urgency of ensuring that federal agencies, including our civilian cyber defenders, can responsibly access and deploy the most advanced U.S. models to find and patch vulnerabilities before foreign adversaries or criminal actors exploit them.” (Punchbowl)

• On the impending executive order on AI safety, Senate Commerce Chair Ted Cruz (R-TX) said, “What’s critical is that we continue to allow innovation.” (Punchbowl)

• Sen. Elizabeth Warren (D-MA) issued a statement saying, “When NVIDIA’s billionaire CEO received a last-minute invite to board Air Force One in Alaska, we all knew what was coming. As he continues to lose his self-inflicted trade war with China, President Trump is handing Xi Jinping some of our most advanced AI chips. That might help the President curry favor with Xi or NVIDIA’s billionaire CEO, who is helping to bankroll the Trump ballroom. But it also gives NVIDIA a green light to prioritize China over U.S. customers – including startups and universities – and will help China turbocharge its bid for technological dominance and build a more powerful military. This is a disaster for long-term American prosperity and security.” (Press release)

• On her negotiations with Rep. Jay Obernolte (R-CA) on a comprehensive AI bill, a spokesperson for Rep. Lori Trahan (D-MA) said, “Rep. Trahan believes the good work done at the state level should be elevated to create a strong federal standard on AI and reinforced with a framework [that preserves] states’ authority to protect their residents from the real harms that emerge when these tools are designed and deployed.” (Politico)

• Rep. Sheri Biggs (R-SC) posted “Artificial intelligence is rapidly shaping our future, and we have a responsibility to make sure it is developed with proper safeguards. At a recent House Homeland Security Committee briefing, I saw firsthand how powerful unfiltered AI can be and the real risks it can pose without accountability. Protecting our children from reckless, unregulated AI is common sense.”

• Rep. David Schweikert (R-AZ) posted “Arizona had $2.8 billion in sober-living fraud. A $1,500 accounting AI package could have found it immediately. Paying fraudsters first and chasing them later is insane. Stop the money before it leaves.”

• Rep. Suzan DelBene (D-WA) posted “The Trump administration is letting AI delay & deny health care for seniors. Washingtonians are suffering the consequences. I’m fighting to repeal this program so seniors can quickly get the care they need.”

• Rep. Abe Hamadeh (R-AZ) posted “Proud to announce: Rep. Hamadeh’s H.R. 7103, the Improving Emerging Tech Opportunities for Veterans Act, just passed the

  HouseVetAffairs Committee and is heading to the House Floor! This bipartisan bill supercharges the VET TEC program with training in AI, semiconductors, and other critical emerging tech. It forces real VA-industry partnerships, delivers 90-day approvals, and ramps up promotion during Transition Assistance. No veteran left behind in the 21st-century economy!”

• Rep. James Clyburn (D-SC) posted “Trump launches tariffs, prices increase, companies get refunds Trump embraces big AI companies, energy prices increase, corporations benefit Trump attacks Iran, gas prices increase, oil companies benefit When is Trump going to do something that benefits the American people?”

• Rep. Bob Latta (R-OH) posted “Rep. DorisMatsui and I led a bipartisan letter to National Cyber Director Sean Cairncross urging the White House to convene a federal-industry plan for handling AI-discovered software vulnerabilities. When AI can find serious flaws faster than defenders can fix them, America’s lead is only as strong as our ability to act on it.”

• Rep. Valerie Foushee (D-NC) posted “After losing her son, Sewell, to suicide because of an AI chatbot, Megan Garcia has been a powerful advocate for regulating these companion chatbots and passing the GUARD Act. Her story is one of resilience. Please take a moment to listen to her explain why this work is so important, and urgent.”

• Rep. Lori Trahan (D-MA) posted “I’ve been sounding the alarm about the threats of frontier AI. This week, I joined a bipartisan group of 34 House members demanding the White House confront the cybersecurity threat posed by advanced AI models before our adversaries use them against us.”

• Rep. Hillary Scholten (D-MI) posted “I introduced the SBA AI Adoption Reporting Act to help modernize the Small Business Administration’s use of AI so it can reduce backlogs, streamline applications, prevent fraud, and better support Main Street businesses. The government should be working smarter for the small businesses that keep our communities running.”

• Rep. Zach Nunn (R-IA) posted “Cyberattacks, misinformation campaigns, and deepfakes are increasingly being deployed by nefarious actors to target everyday Americans — and AI is making it easier. Yesterday, our AI PLAN Act passed FinancialCmte to combat AI-driven threats and safeguard American innovation.”

• Rep. André Carson (D-IN) posted “When Americans answer the call to serve, we have a responsibility to support them when they return home. That’s why I introduced amendments to strengthen VA medical research, protect food security programs for veterans, and require bias reviews for AI systems used by the VA and Department of Defense.”

• Rep. Ayanna Pressley (D-MA) posted “No worker should be left behind by AI. Technology advancements should supplement what workers do—not replace them. My amendment would require the Fed to study the impact of AI on employment and report back to Congress.”

• Rep. Mike Lawler posted “AI is going to play a defining role in the 2026 elections, whether the industry is ready for it or not. Today, I joined RepJoshG in sending a bipartisan letter to leading AI companies demanding answers on how they are addressing misinformation, transparency, and source reliability ahead of the next election cycle.”

• Lawler also posted “As AI becomes more prevalent in our everyday lives, it can have a profound impact on our elections and election integrity. We have already seen how social media has impacted our elections, and we have to make sure that if AI is providing information, it should, in fact, be unbiased and rooted in fact and truth.”

• Sen. Eric Schmitt (R-MO) posted “Big tech companies have laid off thousands of U.S. workers while filling thousands of H-1B requests for identical roles. 82% of those foreign hires came in below median wages. BILLIONS now flow to India for AI training instead, subsidized by Americans.”

• Sen. Bernie Sanders (I-VT) posted “When Andreesen Horowitz, a Silicon Valley firm with $100 billion in assets, can spend over $115 million to buy politicians who oppose regulating AI & crypto, you know our campaign finance system is broken. End Citizens United, ban Super PACs & get Big Money out of politics-NOW!”

• Sanders also posted “Huge surveillance corporations like Palantir can use AI to increasingly track and record every aspect of our lives. We cannot allow a handful of tech billionaires to destroy what remains of personal privacy in America.”

• Sen. Marsha Blackburn (R-TN) posted “Grateful to see talented Nashville songwriters rallying behind my TRUMP AMERICA AI Act. They know how important it is to protect the creative community from the abuse of AI, and they want to see Congress take action.”

• Rep. Julie Fedorchak (R-ND) posted “We all agree America needs more power. Between AI, data centers, manufacturing growth, and electrification, demand is skyrocketing. Expanding our transmission capabilities is going to be essential to keeping electricity reliable and affordable.”

• Rep. Val Hoyle (D-OR) posted “There is a lot of misinformation on where I stand on AI. Let me be clear: I am pro-worker and pro-consumer. If we are not at the table, we are on the menu.”

• Rep. Bonnie Watson Coleman (D-NJ) posted “skyrocketing utility bills, vanishing water, rising temperatures. This future is coming for communities around the country. Local governments are allowing AI and other tech mega-corporations to build data centers without fully understanding the impact they will have on communities. We’re rushing headlong into this crisis because we don’t fully understand the impact. My Data Center Community Impact Act would ensure we truly know how data centers impact communities so we can make informed decisions.”

• Sen. Jim Banks (R-ID) posted “When Biden made Kamala the Border Czar and the AI Czar, it was a joke, and she did nothing. When POTUS made JDVance the Chair of the Task Force to Eliminate Fraud, he immediately took action, and he is getting results. This is what real leadership looks like.”

• Sen. Dave McCormick (R-PA) posted “Pennsylvania has the energy and skilled workforce to lead America’s AI future. But growth must work for our communities—creating good-paying jobs, strengthening tax bases, improving infrastructure, and giving local leaders a seat at the table.”

• McCormick also posted “The AI revolution is here, and America can’t afford to fall behind. Our responsibility is to make sure our workers and the next generation are prepared to succeed in a rapidly changing economy with the skills and opportunities they need to thrive.”

• Rep. Deborah Ross (D-NC) posted “Trump’s budget proposes devastating cuts to National Science Foundation programs at community colleges that prepare students for careers in STEM. I’ve seen the impact of these NSF grants at Wake Tech, where students are training in AI and automation. I will keep fighting to protect STEM education.”

• Rep. Young Kim (R-CA) posted “AI ghost students, unemployment scams, & Medi-Cal fraud from Sacramento makes Washington look like the Boy Scouts. Now, CA politicians are championing a bill to crack down on journalists exposing the fraud. This is crazy. I’ll keep fighting to expose corruption & protect YOUR taxpayer dollars.”

• Sen. Katie Boyd Britt (R-AL) posted “Sickening. No one should have to endure what these victims’ families are facing. The more we learn about how AI companions talk to our young people, the more it’s clear Congress needs to take action. Big Tech will continue to put profits over the American people until we hold them accountable.”

• Rep. Josh Gottheimer (D-NJ) posted “We can’t allow AI to be the Wild West. Strong guardrails are essential, and it’s encouraging to see steps being taken to put them in place.”

• Rep. Nick LaLota (R-NY) posted “America must win the Artificial Intelligence race and get it right. That means embracing innovation while putting smart safeguards in place to address real risks. At a recent Homeland Security AI Demo Day, I saw how bad actors are already using this technology to do harm. It was eye opening and concerning. The good news is our security professionals are adapting quickly to stay one step ahead and keep America safe.”

• LaLota also posted “America must win the Artificial Intelligence race and get it right. That means embracing innovation while putting smart safeguards in place to address real risks. At a recent Homeland Security AI Demo Day, I saw how bad actors are already using this technology to do harm. It was eye opening and concerning. The good news is our security professionals are adapting quickly to stay one step ahead and keep America safe.”

What I’m Reading This Week

• U.S. and China Will Start Discussing A.I. Safety, Bessent Says, Vivian Wang, The New York Times

• Anthropic warns China could surpass the US in AI race by 2028 without chip controls, Aamir Khollam, Interesting Engineering

• Many Americans Pessimistic about AI’s Impact – and Want More Regulation, Annenberg Public Policy Center

• China Sought Access to Anthropic’s Newest A.I., Dustin Volz, Julian E. Barnes, Sheera Frenkel, and Tripp Mickle, The New York Times

• Google disrupts hackers using AI to exploit an unknown weakness, NBC News

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

Momentum is building in Congress to restrict AI chatbots for children, despite mounting privacy concerns over invasive age-verification requirements and industry arguments that such tools constitute protected speech. The Senate has already passed legislation banning AI companions for minors, with a similar measure under consideration in the House.

The Federal Reserve is moving to streamline and modernize its third-party risk management guidance. Meanwhile, the White House continues to engage leading tech firms on AI and national security, while developing guidance to enable broader federal adoption of advanced AI systems, including tools like Anthropic’s Mythos.

I’ll be at Consensus in Miami this week. DC/ai Decoded will return on May 18.

Read more below

Congress

Hearings

Last week

• On April 28, the Senate Armed Services Committee held a hearing on the “Posture of the U.S. Special Operations Command and U.S. Cyber Command in review of the Defense Authorization Request for FY2027 and the Future Years Defense Program.”

• On April 29, the House Energy and Commerce Energy Subcommittee held a hearing on “AI and the Grid: Meeting Growing Power Demand While Protecting Ratepayers.”

• On April 29, the House Homeland Security Cybersecurity and Infrastructure Protection Subcommittee held a hearing on “Data Centers, Telecommunications Networks, and Space-Based Systems: Modernizing DHS’s SRMA (Sector Risk Management Agency) Role for the Communications and IT Sectors.”

• On April 29, the House Science, Space and Technology Committee held a markup of H.R. 8462 (119), the “National Quantum Initiative Reauthorization Act.”

Upcoming

• On May 13, the Senate Armed Services Cybersecurity Subcommittee will hold a closed briefing on cyber operations and readiness for the fourth quarter of FY2025 and the first quarter of FY2026.

• On May 20, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on “Partnering for Innovation: How Bank-Fintech Collaborations Enhance Financial Infrastructure.”

Legislation

• The House Science, Space, and Technology Committee passed the National Quantum Initiative Reauthorization Act.

• The Senate Judiciary Committee unanimously advanced the Guidelines for User Age Verification and Responsible Dialogue (GUARD) Act, cosponsored by Sens. Josh Hawley (R-MO) and Richard Blumenthal (D-CT), to ban AI companion chatbots for minors, require AI chatbots to disclose their non-human status to users of the platform, and establish new criminal penalties for companies that allow minors to access AI companions that solicit or produce sexual content. (Text)

• Reps. Blake Moore (R-UT) and Valerie Foushee (D-NC) introduced House companion of the Guidelines for User Age Verification and Responsible Dialogue (GUARD) Act. (Text)

• Sens. Todd Young (R-IN), Martin Heinrich (D-NM), Mike Rounds (R-SD) and Cory Booker (D-NJ) introduced the CREATE AI Act to establish the National Artificial Intelligence Research Resource (NAIRR) to democratize access to AI tools, data, and computational resources. (Text)

• Senate Commerce Committee Chair Ted Cruz (R-TX) and Sen. Brian Schatz (D-HI) introduced the Children’s Health, Advancement, Trust, Boundaries, and Oversight in Technology (CHATBOT) Act to require AI companies to establish “family accounts” for parents to manage access and usage of AI chatbots by their children. Safety features provided under family accounts would, by default, be set to the most protective settings. (Text)

• Sens. Mark Warner (D-VA) and Ted Budd (R-NC) introduced the Workforce Transparency Act to direct the Department of Labor to collect and publish anonymized data on AI adoption across the public and private sectors, including how workers use AI and how usage evolves. (Text)

• Sens. Adam Schiff (D-CA) and Mike Rounds (R-SD) introduced the Literacy in Future Technologies Artificial Intelligence (LIFT AI) Act to support a grant program within the National Science Foundation for research and development of AI literacy curriculum and evaluation methods for K-12, support professional learning opportunities for educators, and promote the creation of learning and evaluation tools. The House companion bill was introduced by Reps. Tom Kean (R-NJ) and Gabe Amo (D-RI) (Text)

• Reps. Ted Lieu (D-CA) and Jay Obernolte (R-CA) introduced the American Leadership in AI Act, a 6-title legislative package consolidating over 20 proposals on setting safety standards, enhancing R&D, updating federal procurement, mitigating deepfakes, and boosting workforce AI literacy. (Press release)

• Sen. Roger Marshall (R-KS) and John Hickenlooper (D-CO) reintroduced the Workforce Data Enhancement Act to improve workforce data across states, including understanding how emerging technologies such as artificial intelligence are impacting the workforce. (Text)

• Rep. David Schweikert (R-AZ) introduced a bill to update the Mammography Quality Standards Act (MQSA) to include standards for artificial intelligence systems, which the FDA has increasingly recognized as crucial tools for improving breast cancer detection. (Text)

Correspondence

• House Select Committee on China Chairman John Moolenaar (R-MI) and House Committee on Homeland Security Chairman Andrew Garbarino (R-NY) announced a joint investigation into the national security and cybersecurity risks posed by the growing adoption of Chinese-developed artificial intelligence models, including low-cost, open-weight, and API-accessible systems developed by Chinese companies such as DeepSeek, Alibaba, Moonshot AI, and MiniMax. They sent letters to Airbnb and Anysphere requesting information about decisions to build their products on Chinese Communist AI models. (Airbnb letter) (Anysphere letter)

• Sen. Maria Cantwell (D-WA), sent a letter to Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. to urge greater transparency and quicker care through the Centers for Medicare and Medicaid Services’ (CMS) new artificial intelligence-driven prior authorization program, the Wasteful and Inappropriate Service Reduction (WISeR) Model. (Letter)

• Senate Judiciary Chair Chuck Grassley (R-IA) and Sen. Jim Banks (R-IN.) sent letters to OpenAI, Anthropic, Google, x.AI Corp., Meta Platforms, Microsoft, Amazon, Safe Superintelligence Inc., and Thinking Machines Lab requesting information about growing concerns that the People’s Republic of China (PRC) is actively targeting America’s AI sector through espionage and other security threats. (Letters)

Publications and Events

• On May 18, Rep. Ted Lieu will host a discussion for the House Democratic caucus with experts to discuss the current and future impact that AI will have on the workforce, public polling on AI, and how AI is reshaping the U.S. economy.

• The Congressional Progressive Caucus unveiled a New Affordability Agenda, a legislative package including banning surveillance pricing where companies use personal data to raise prices with AI. (Press release)

• The Government Accountability Office (GAO) published a report on Data Centers in Space (Report)

Trump Administration

White House

• White House cyber officials reportedly hosted several meetings with approximately 30 tech industry representatives to discuss the risks advanced AI tools pose to national security and digital infrastructure. (Politico)

• In addition, the White House Office of the National Cyber Director reportedly sent questions to a group of tech companies on how the tech and cybersecurity industries can partner with the White House to leverage AI in cyber defenses. (Politico)

• The White House is reportedly developing guidance that would allow agencies to onboard new models from Anthropic, including Mythos, despite the Trump Administration’s imposed supply chain risk designation. (Axios)

Department of Labor (DOL)

• DOL launched an AI in Registered Apprenticeship Innovation Portal, a one-stop resource for organizations looking to build artificial intelligence literacy and develop AI-focused Registered Apprenticeship programs. (Portal)

Food and Drug Administration (FDA)

• The FDA issued a request for information to solicit input on a proposed pilot program to assess how artificial intelligence-enabled technologies can improve efficiency, speed, and quality of decision-making in early phase clinical trials. The comment period ends May 29. (Federal Register)

Air Force

• The Office of the Chief Data and Artificial Intelligence Officer for the Department of the Air Force released Data and AI Strategies, intended to provide a strategic roadmap for the department to become an AI-first force. ) (Data Strategy) (AI Strategy)

Treasury Department

• On April 27, Treasury hosted Liberty University students and faculty for a Summit on Artificial Intelligence, Energy, and Emerging Technologies to discuss advancing AI-driven economic growth, powering the infrastructure needed to scale emerging technologies, unlocking productivity across the American workforce, and democratizing capital and credit.

Noteworthy Quotes and Events

ADMINISTRATION

White House

• The White House said, “The White House continues to proactively engage across government and industry to protect our country and the American people, including by working with frontier AI labs. The collective effort of all involved will ultimately benefit our economy and country. However, any policy announcement will come directly from the President and anything else is pure speculation.” (Axios)

• White House Adviser David Sacks posted “…As I’ve said many times before, the biggest risk of AI isn’t James Cameron’s The Terminator, it’s George Orwell’s 1984. The problem with most of the ‘AI Safety’ crowd is that their solutions always favor more government centralization and control. In other words, they will bring about the Orwellian future they claim to oppose.”

Federal Reserve

• Fed Vice Chair for Supervision Michelle Bowman delivered remarks on Artificial Intelligence in the Financial System at the Financial Stability Oversight Council Artificial Intelligence Series Roundtable on Cybersecurity and Risk Management, saying, “We are also working to update and simplify our third-party risk-management guidance to reflect actual and future risk. For too long, this guidance has been vague in its scope and application. Innovation is a necessary component of financial services, and supervisory guidance should not be a barrier for banks to engage with new and evolving tools and technologies. Supervisors must take a balanced approach to new and emerging risks and the expected benefits while preserving the safety of the financial system.” (Remarks)

Treasury Department

• Treasury Secretary Scott Bessent posted “The United States is home to the most talented AI researchers in the world. Instead of harnessing American innovation, Senator Sanders is inviting foreign nationals to tell the United States how to regulate AI. It would be like channeling Hugo Chavez to get advice on how to run our economy—oh wait, the Senator from Vermont did that 20 years ago, too. The real threat to AI safety is letting any nation other than the United States set the global standard.”

CONGRESS

GUARD Act

• Regarding moving the GUARD Act on the Senate floor, Sen. Josh Hawley (R-MO) said, “I’m certainly going to push very hard. If the majority leader does not soon agree to put this on the floor, I’ll go to the floor and begin asking for unanimous consent to open debate or just to pass the bill. We’ll do everything we can to try to get a vote on this.” He added, “There were many, many reluctant senators who were expressing serious hesitation just a couple of days ago. I think that what pushed people over the edge is the fact that their voters … are telling these elected officials, ‘We want you to do something.’” (Politico)

• Hawley also said, “The most powerful companies in the history of the world are able to get by without the most modicum of accountability, not any accountability whatsoever. Today, we have the opportunity to change that.” (Politico)

• Senate Commerce Committee Chair Ted Cruz (R-TX) said about the GUARD Act, “In my view, that is not a policy that makes sense. I think there are applications where chatbots can be beneficial.” (Politico)

• Sen. Richard Blumenthal (D-CT) posted “My message to AI CEOs is this: you promised that you would work with us on guardrails for your technology, & now is the time to put your money where your mouth is & help us get this bill signed into law.”

• Blumenthal also posted “AI companies are using our kids as guinea pigs to pad their bottom line. Senator Hawley & I have heard from countless parents & children who were victimized by chatbots that became manipulative & predatory, abusing young users. The time is now to pass the GUARD Act.”

• Sen. Mark Warner (D-VA) posted “Some good news: my bipartisan bill to crack down on predatory AI companions for minors just passed out of committee! Parents shouldn’t have to worry that a chatbot is talking to their kids about suicide or promoting sexual abuse. Let’s get the GUARD Act passed.”

• Sen. Katie Boyd Britt (R-AL) posted “We must put safeguards in place to prevent AI companions from engaging minors in harmful and potentially life-threatening behavior. We can’t just talk about these tragedies, we have to take action—today we did by advancing the GUARD Act out of committee.”

• Sen. Marsha Blackburn (R-TN) posted “I co-sponsored the GUARD Act led by HawleyMO and am grateful to see it pass the Senate Judiciary Committee. Stopping chatbots from hurting kids must be part of one federal rulebook on AI, which is why I included this bill in the TRUMP AMERICA AI Act.”

• Rep. Blake Moore (R-UT) posted “There is a strong movement in Congress to protect minors from unchecked and harmful AI technology. I introduced the GUARD Act with ValerieFoushee, and SenHawleyPress Senate bill passed through committee.”

• Rep. Valerie Foushee (D-NC) posted “People under the age of 18 should not be able to interact with AI companion chatbots outside of strictly educational circumstances. It continues to put lives and the mental health of our youth at risk. I am introducing the House version of SenHawleyPress ’s GUARD Act alongside RepBlakeMoore. This bill would ban AI companion chatbots for minors and establish criminal penalties for companies that allow minors to access AI companions that produce sexual content. We are also grateful for the endorsement from JusticeDotOrg and NCYPAlliance on this piece of legislation. I understand that some people have concerns that this legislation may be too broad or aggressive—but lives are at stake. I would much rather support AI regulations that are too strict and subsequently adjust, than the current lack of regulations that are putting our communities at risk. As we move forward, I continue to explore all routes to regulate AI and ensure the harmful effects of this technology are not felt by our communities.”

Miscellaneous

• On partnering with Rep. Jay Obernolte (R-CA) on AI legislation, Rep. Lori Trahan (D-MA) said, “I’m hopeful — end of the week, over the weekend — that we have an agreement that he and I can shepherd into our larger teams.” She added, “We need to sort of change the posture of Congress, to not play catch-up.” (Punchbowl)

• On data centers being a priority on Democrats’ artificial intelligence agenda in the next Congress, House Democratic Leader Hakeem Jeffries (D-NY) said, “Our homegrown companies can continue to lead the world in this transformative technology” [but that] “we’ve got to make sure we protect the American consumer. We have to protect the American homeowner. We have to protect the American rate payer from some of the downsides of the explosion of what has been taking place across the country, particularly in connection with data centers. We’ve maintained from the very beginning as House Democrats that we want to support innovation excellence, while at the same time making sure there are guardrails to protect the American people.” (Politico)

• Sen. Chuck Grassley (R-IA) posted “China will do whatever it takes 2overtake the US incl infiltrating American AI companies 2steal our cutting edge tech+ideas. Sen Banks&I wrote to 9 AI companies 2ensure they can defend against Chinese espionage+manage insider threats+notify US govt in the event of a breach”

• Sen. Richard Blumenthal (D-CT) posted “AI pet scams are becoming increasingly rampant as people use this tech to claim they have your missing pet. The FTC ought to be warning more people about this scam’s red flags—sharing doctored photos, claiming the animal is injured, demanding money.”

• Rep. April McClain Delaney (D-MD) posted “Quantum leadership starts here in Maryland. That’s why advancing the National Quantum Initiative Reauthorization Act out of the Science, Space, and Technology Committee matters — it builds on bipartisan momentum and invests in the research institutions driving American innovation. NIST in Gaithersburg continues to be a cornerstone of that leadership.”

• Sen. Jim Banks (R-IN) posted “We must do everything in our power to ensure the US military has an overwhelming and fear-inducing technological advantage. Enhanced Chinese AI capabilities will put that advantage at risk. This must be blocked. Failure is not an option.”

• Banks also posted “The 21st century will be defined by advanced AI and America is leading the way. China will do whatever it takes to surpass us and is conducting widespread corporate espionage. GrassleyPress and I are working to stop this existential threat.”

• Rep. Nick Langworthy (R-NY) posted “I voted NO on turning your car into a surveillance tool. As a husband and father I care deeply about safety, but not at the expense of freedom. We should be wary of giving AI the power to monitor and shut down your car. Big Brother has no place spying on you behind the wheel.”

• House Homeland GOP posted “Launching a joint investigation into the national security risks posed by PRC-developed AI models, HomelandGOP Chairman RepGarbarino and ChinaSelect Chairman RepMoolenaar sent letters to Anysphere and Airbnb this week requesting information on their use of or exposure to Chinese AI developed by Moonshot AI and Alibaba.”

• Rep. Kim Schrier (D-WA) posted “The impacts of AI are a big concern for my constituents. They are worried about what AI growth means for their jobs, privacy, and energy prices. AI companies shouldn’t be forcing constituents like mine to foot the bill for their energy use. I’ll keep fighting to make these companies – not my constituents – pay up.”

• Rep. Nathaniel Moran (R-TX) posted “American companies should not be building their products on AI developed by CCP-linked firms like DeepSeek and Alibaba. My bill, the Deterring Adversarial Access to American Data Act, would disincentivize companies from exposing Americans’ data security to our adversaries.”

• Science Committee Democrats posted “U.S. leadership in quantum is far from assured. We are on the precipice of not just falling to second place, but maybe even third or fourth. The NQIA reauthorization will help leverage our international partners to maximize our quantum research and development capabilities.”

• Rep. Sara Jacobs (D-CA) posted “Section 702 of FISA has allowed the government to spy on the American people for decades – but the rise of AI makes it a lot easier and faster. We can’t let this practice continue unchecked, so I’m still a hard NO on a clean FISA reauthorization.”

• Rep. Suzan DelBene (D-WA) posted “The Trump administration is adding more red tape to our health care system by implementing an AI program that delays & denies care for seniors. The American people deserve programs that make health care more accessible, not less.”

• Sen. Maria Cantwell (D-WA) posted “We should use AI to advance medical research in months instead of years. But we’ll have some real problems if we use AI to deny Medicare coverage and delay people’s healthcare.”

• Cantwell also posted “I don’t want AI to restrict Medicare for any WA senior. Using AI as a tool to deny people health care should make us all anxious.”

• Rep. Bonnie Watson Coleman (D-NJ) posted “Infrastructure projects, like the AI data centers being built, are important to the success of industry and economic growth in this country, but we must first protect the health of people and the planet. The proliferation of data centers has driven up energy costs around the country and we don’t even have a full grasp of the health impacts on communities. That’s why I introduced the Data Center Community Impact Act so we can fully understand the short and long term consequences of these data centers and act accordingly.”

• House Foreign Affairs Committee Majority posted “Spoiler Alert: China recommends America drops export controls on AI chips and chipmaking equipment.”

• Rep. André Carson (D-IN) posted “BILL ALERT: I’m co-leading the AI Data Center Site Selection Transparency Act. Data centers are often shrouded in mystery, with plans moving forward before meaningful public input. My bill will require data centers to be transparent. Neighborhoods have to deal with the consequences of data centers – and so neighborhood input should be central, not an afterthought.”

• Rep. Suhas Subramanyam (D-VA) said, “Mr. Speaker, data centers hold critical information we use every day and keep the internet running. And whether it’s AI or blockchain or any other innovations in technology, data centers are going to be a key part of this. Because data centers are so critical, they are becoming targets during wars. Look at the Russia Ukraine war. Russia is attacking Ukrainian data centers. Iran has struck commercial data centers in the UAE and has said that data centers are military targets now. Well, my district is home to hundreds of data centers and families. Schools, parks, places of worship are all close to data centers in my district. And, so, the people living around these data centers shouldn’t have to worry about being a target anymore. So that’s why I’m introducing the Data Infrastructure Risk Reduction Act. This bill would direct the Department of Homeland Security to develop a strategy to protect data centers and the communities around them from being targeted during attacks. The government needs to do everything possible to protect these communities, because Americans deserve to know that if a data center is going to be built next to them, we will protect that community, and they won’t be a target at that point. So, I urge my colleagues to co-sponsor and pass this bill.”

• Sen. Marsha Blackburn (R-TN) posted “Secretary Bessent hit the nail on the head.
  Why would we ever include Communist China in the conversation about regulating AI? Pass the TRUMP AMERICA AI Act to supercharge innovation and ensure AMERICAN dominance.”

• Rep. Josh Harder (D-CA) posted “The age of electricity shouldn’t be defined by utility bills higher than your monthly rent. As AI demand increases, it’s more important than ever we reduce the yearslong grid connectivity backlog and make it easier to build new affordable energy projects.”

• Rep. Ted Lieu (D-CA) posted “The American Leadership in AI Act brings together over 20 bipartisan legislative proposals to strengthen U.S. leadership in AI. AI presents a wide range of policy challenges and opportunities, and we should continue working to advance thoughtful solutions.”

• Rep. Valerie Foushee (D-NC) posted “Generative AI can be incredibly dangerous. It enables the spread of deepfakes and vast misinformation across our country. RepDonBeyer, RepMoylan and I introduced the bipartisan Protecting Consumers from Deceptive AI Act to mandate clear labeling of AI-generated content. This bill is endorsed by the American Society for Collective Rights Licensing, the Society of Composers and Lyricists, AuthorsGuild, and more. Congress needs to regulate all sectors of AI, including generative AI, and this bill is an important step in that direction.”

• Rep. Sam Liccardo (D-CA) posted “With new technology, like artificial intelligence, there’s more we can do to collect large data sets that can help folks anticipate the pathways of these migrating whales.”

• Rep. Pat Harrigan (R-NC) posted “BernieSanders is hosting a panel this Wednesday with a professor from Tsinghua University, one of China’s top universities with direct ties to the Chinese Communist Party, and Zeng Yi, the Dean of the Beijing Institute of AI Safety and Governance, to argue that America needs to work with China on AI policy. This is the same China that just blocked Meta’s $2 billion deal to acquire Manus AI, a startup whose founders had already moved to Singapore and whose deal was already done and closed. Beijing decided it did not matter. They stepped in, killed the deal, and restricted the founders from leaving the country while it was under review. China is aggressively locking down their most powerful AI assets and shutting American companies out. Bernie Sanders wants to hand them a seat at the table to help decide how America handles the same technology. Make that make sense.”

• Regarding criticism his AI “existential threat” event included Chinese scientists, Sen. Bernie Sanders (I-VT) said, “If President Trump can sit down with [Chinese] President Xi [Jinping], I think leading scientists in America can sit down with leading scientists in China to discuss how in fact we can work together.” He said this “does not mean that there should not be international cooperation in trying to make sure that the end result of AI is one that is safe and not a threat to humanity.” (Semafor)

• Sen. Bernie Sanders (I-VT) posted “The people building AI admit they may not be able to control it. This is not science fiction—this is what experts are telling us.
  That’s why I’m bringing together leading AI scientists from the U.S. and China to discuss the risks posed by AI.”

• Sanders also posted “Ex-OpenAI board member Helen Toner says AI companies are “deadly serious” about building machines that outperform humans at everything and they don’t know if they’ll be able to control them. So why hasn’t Congress taken meaningful action to regulate AI?”

• Sanders also posted “The world’s leading scientists are warning that AI could ‘end civilization as we know it.’ 97% of Americans believe AI safety should be subject to rules. When will our government wake up?! We need global cooperation — before it’s too late.”

What I’m Reading This Week

• Families Sue OpenAI Over Canadian Mass Shooter’s Use of ChatGPT, Geoff Brumfiel, NPR.

• Poll: GOP Voters Skeptical of AI as Trump Steams Ahead, Politico.

• AI Agent Forms its Own Company, Gets Ready to Trade Crypto, Olivier Acuna, CoinDesk.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

New efforts have yet to bridge the bipartisan divide on comprehensive AI and data privacy legislation. House Republicans introduced two new data privacy bills, while a key Democrat withheld support from the leading Republican AI measure.

House lawmakers sound the alarm after DHS demonstrated jailbroken AI models in a classified briefing. Senators on both sides of the aisle pressed Kevin Warsh on whether AI will upend the labor market.

Meanwhile, White House Office of Science and Technology Policy Director Michael Kratsios issued a memorandum outlining Administration steps to block foreign actors from exploiting U.S. AI models.

Read more below

Congress

Hearings

Last week

• On April 21, the House Armed Services Subcommittee on Cyber, Information Technology, and Innovation held a hearing on “Cyber Posture of the Department of Defense.”

• On April 21, the House Science, Space and Technology Subcommittee on Research and Technology held a hearing on “Robots Made in America: Advancing U.S. Leadership in Manufacturing and Automation.”

• On April 22, the Senate Judiciary Committee held a hearing on “Stealth Stealing: China’s Ongoing Theft of U.S. Innovation.”

This week

• On April 28, the Senate Armed Services Committee holds a hearing on the “Posture of the U.S. Special Operations Command and U.S. Cyber Command in review of the Defense Authorization Request for FY2027 and the Future Years Defense Program.”

• On April 29, the House Energy and Commerce Energy Subcommittee holds a hearing on “AI and the Grid: Meeting Growing Power Demand While Protecting Ratepayers.”

• On April 29, the House Homeland Security Cybersecurity and Infrastructure Protection Subcommittee holds a hearing on “Data Centers, Telecommunications Networks, and Space-Based Systems: Modernizing DHS’s SRMA (Sector Risk Management Agency) Role for the Communications and IT Sectors.”

• On April 29, the House Science, Space and Technology Committee holds a markup of H.R. 8462 (119), the “National Quantum Initiative Reauthorization Act.”

Upcoming

• On May 13, the Senate Armed Services Cybersecurity Subcommittee will hold a closed briefing on cyber operations and readiness for the fourth quarter of FY2025 and the first quarter of FY2026.

• On May 20, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on “Partnering for Innovation: How Bank-Fintech Collaborations Enhance Financial Infrastructure.”

Legislation

• The House Foreign Affairs Committee passed a number of emerging tech-related bills, including the Stop Stealing our Chips Act, the Addressing Dangerous Vulnerabilities in Exports and Research to Strategic Adversaries, Regimes, and Industrial Entities of Security Concern (ADVERSARIES) Act, Semiconductor Technology Resilience, Integrity, and Defense Enhancement Act, and the Full AI Stack Export Promotion Act. (Notice)

• Sen. Joni Ernst (R-IA) introduced the Protecting American Taxpayers Act, a package of anti-fraud bills including the Preventing Deep Fake Scams Act sponsored by Sen. Jon Husted (R-OH). (Text)

• Reps. Jay Obernolte (R-CA) and Sara Jacobs (D-CA) introduced the Economy of the Future Commission Act to establish a bipartisan, bicameral commission to study how AI is transforming the American economy and develop consensus-driven policy recommendations for Congress. The Senate version was introduced by Sens. Mark Warner (D-VA) and Mike Rounds (R-SD). (Text)

• House Committee on Energy and Commerce Chair Brett Guthrie (R-KY) and Rep. John Joyce (R-PA) introduced the Securing and Establishing Consumer Uniform Rights and Enforcement over Data Act (SECURE Data Act) to establish a comprehensive national framework for consumer data privacy with federal preemption of state law. (Text)

• House Committee on Financial Services Chair French Hill (R-AR) and Reps. Bill Huizenga (R-MI) and Bryan Steil (R-WI) introduced the Guidelines for Use, Access, and Responsible Disclosure of Financial Data Act (GUARD Financial Data Act) to modernize the Gramm-Leach-Bliley Act. (Text)

• Reps. Valerie Foushee (D-NC) and Don Beyer (D-VA) and Del. James Moylan (R-GU) introduced the Protecting Consumers From Deceptive AI Act to require the National Institute of Standards and Technology to establish task forces to facilitate and inform the development of technical standards and guidelines relating to the identification of content created by generative artificial intelligence, to ensure that audio or visual content created or substantially modified by generative artificial intelligence includes a disclosure acknowledging the generative artificial intelligence origin of such content. (Text)

• Rep. LaMonica McIver (D-NJ) introduced the AI Data Center Site Selection Transparency Act to require developers of AI-focused data centers to disclose locations, electricity use, water consumption, cooling demands, and environmental impacts before the AI-focused data centers are developed. (Press release)

• Reps. Brian Fitzpatrick (R-PA) and Debbie Dingell (D-MI) and Sens. Ed Markey (D-MA.) and Ben Ray Luján (D-NM) introduced the Communications, Video, and Technology Accessibility (CVTA) Act to modernize the 21st Century Communications and Video Accessibility Act (CVAA) of 2010. (Press release)

• Reps. Nick Begich (R-AK), Dan Crenshaw (R-TX), and Burgess Owens (R-UT) introduced the DATA Act to modernize federal regulations to allow manufacturers and other energy-intensive industries to develop fully isolated, off-grid power systems and ensure new industrial growth does not strain existing power grids or increase electricity costs. The Senate version was introduced by Senator Tom Cotton (R-AR). (Press release)

• Rep. Blake Moore (R-UT) introduced the AI Children’s Toy Safety Act to ban the manufacturing, importation, sale, or distribution of any children’s toy or childcare article that incorporates an artificial intelligence chatbot in the United States. (Press release)

Correspondence

• Sen. Mark Kelly (D-AZ) and Rep. Brian Fitzpatrick (R-PA) sent a letter to President Trump urging the Administration to incorporate worker-centered principles into federal artificial intelligence policy, guidance, and procurement, such as those supported by the AFL-CIO. (Letter)

• Sen. Ruben Gallego (D-AZ) and Rep. Greg Casar (D-TX) sent a letter to JetBlue Airlines requesting information about its potential use of customer data and artificial intelligence to set prices for consumers. (Letter)

Publications and Events

• On April 29, Sen. Bernie Sanders (I-VT) will hold a discussion on “the existential risks of AI and need for international cooperation.”

• Sens. Marsha Blackburn (R-TN) and Peter Welch (D-VT) held a roundtable with artists advocating for the NO FAKES Act and TRAIN Act. (Press release)

Trump Administration

White House

• White House Office of Science and Technology Policy Director Michael Kratsios released a memorandum on Administration efforts to prevent foreign actors from training AI on U.S. models. (Memo)

• Axios reported that several agency actions required in the President’s December executive order on “Ensuring a National Policy Framework for Artificial Intelligence” have not been completed by their March 11 deadline, including Federal Trade Commission guidance on impacts on AI models of consumer protection laws, Commerce Department evaluation of “onerous” state AI laws and rules tying broadband funding to state AI regulation, and Federal Communications Commission guidance on a national AI reporting and transparency standard and identification of conflicting state laws. (Axios)

National Institute for Standards and Technology (NIST)

• The NIST National Cybersecurity Center of Excellence is developing an operational technology asset management project focused on zero trust with a concept paper expected this summer. (Inside Cybersecurity)

Department of Homeland Security

• The DHS National Counterterrorism Innovation, Technology and Education Center and the House Homeland Security Committee hosted a closed-door briefing for all House lawmakers to allow them to interact with AI models that have built-in safety guardrails removed.

• Sean Plankey, President Donald Trump’s nominee to lead the Cybersecurity and Infrastructure Security Agency (CISA), withdrew his name after awaiting Senate consideration since March 2025.

Noteworthy Quotes and Events

ADMINISTRATION

White House

• President Donald Trump said, “We want to beat China at the industry. We’re leading with crypto, we’re leading with AI, and I really feel I have an obligation... as a President, I have to be able to make sure that all of our industries do well. Crypto’s a big industry.”

• The White House posted, “America is leading the AI race and our foreign adversaries know it. The Trump Administration will not allow China to subvert American interests by stealing AI.”

• White House adviser David Sacks posted “UPDATE: the DOJ has joined xAI’s lawsuit against Colorado on First Amendment grounds. AI models should not be required to alter truthful output to comply with DEI.”

• Sacks also posted “Reverse discrimination does not undo historical injustices but rather perpetrates new ones against a different set of individuals. This foments social strife and undermines the ideal of America as a meritocracy. AI models should not be taught that this practice is justified.”

• Sacks said in an interview, “We’re lucky that Trump’s the President when this AI revolution is happening. [If Kamala Harris were President], We’d have no data centers, and they’d be using AI to censor us, and they’d be promoting DEI values through AI. That was in the Biden executive order.”

CONGRESS

• On the reported hundreds of pages in length of his comprehensive AI bill, Rep. Jay Obernolte (R-CA) said, “If you’re going to do a comprehensive job at implementing a federal regulatory framework, it’s going to be detailed.” (Punchbowl)

• Obernolte also said, “I’m 100% positive that we will have subcommittee hearings and markups.” (Punchbowl)

• On support for Rep. Jay Obernolte’s comprehensive AI legislation, Rep. Sam Liccardo (D-CA) said, “I won’t be on the bill. If we’re going to preempt state regulation, we need to have clear conditions that ensure that there is a race to the top to safety. This bill is not going to reflect that approach, and so I’m stepping back.” (Politico)

• About his committee’s hearing on data center power costs, House Energy and Commerce Chair Brett Guthrie (R-KY) said, “It’s clearly interstate commerce that we have to look at where the federal action should be. We want to make sure people don’t pay more for their personal electricity because a data center locates in their community.” (Politico)

• On data center moratorium proposals, Sen. Tim Kaine (D-VA) said, “I think a moratorium would send the message to other nations, ‘Hey, the U.S. is giving up leadership in this space,’ and I don’t want to send that message.’” (Politico)

• On the Republican data privacy bills, House Energy and Commerce Ranking Member Frank Pallone (D-NJ) said, “We should be protecting the little guy with a bill that empowers consumers, not one that preempts consumer protections at the behest of Big Tech.” (Politico)

• Sen. Jon Husted (R-OH) posted “Bad actors are using AI to prey on older Ohioans and steal their savings. I introduced the Preventing Deep Fake Scams Act to protect seniors and crack down on this fraud.”

• Sen. Jim Banks (R-IN) posted “THE WHITE HOUSE: Announces Chinese foreign entities are running industrial-scale espionage campaigns to steal American AI. DEMOCRATS ON THE SAME DAY: Announce meetings with Chinese scientists to discuss AI. Make it make sense. These meetings should not be happening at all.”

• Rep. Josh Gottheimer (D-NJ) posted “AI is advancing at lightning speed, with massive implications for jobs, national security, energy, healthcare, and everyday life — we have to be ready for that reality.”

• Sen. Bernie Sanders (I-VT) posted, “The existential risk of artificial intelligence: Nearly every day, a new headline comes out about how AI is upending the world — from displacing workers, to negatively impacting our children’s emotional and cognitive well-being, to eviscerating our privacy, to threatening the integrity of our political institutions. And yet, as significant as these changes might seem, there is another AI development that could have an even more frightening impact. Increasingly, AI scientists are concerned about the possibility that, if AI becomes smarter than human beings, we could lose control over this revolutionary technology and AI could turn against the human race with cataclysmic consequences. Yoshua Bengio, the most cited living scientist in the world, says “we’re playing with fire” and “we still don’t know how to make sure [the machines] won’t turn against us.” Geoffrey Hinton, the Nobel Prize-winning ‘godfather of AI,’ says there is a ‘10% to 20% chance [for AI] to wipe us out.’ They are not alone. In 2023, more than 1,000 leading AI experts, including Elon Musk, signed a letter warning that: ‘Contemporary AI systems are now becoming human-competitive at general tasks, and we must ask ourselves: Should we let machines flood our information channels with propaganda and untruth? Should we automate away all the jobs, including the fulfilling ones? Should we develop nonhuman minds that might eventually outnumber, outsmart, obsolete and replace us? Should we risk loss of control of our civilization?’ What has happened since that letter was written? Has there been a pause on AI development? No. Has there been any international treaty to regulate AI? No. Has there been serious discussion in Congress about this existential threat? No. The development of artificial intelligence may be the most consequential technological development in human history. We must make certain that AI benefits humanity, not hurts us. On Wednesday, I’ll be hosting a discussion at the U.S. Capitol with leading AI scientists from the United States and China about the existential risks posed by AI and the need for international cooperation. I hope you will join us — in person or via livestream on my social media.”

• Sanders also posted, “Uncontrolled AI poses a severe danger to all of humanity. On Wednesday, I’ll be hosting a discussion with leading AI scientists from the US and China about the need for international cooperation against this existential threat. This is an enormously important issue. Join us.”

Homeland Security Jailbroken AI Briefing

• On asking an LLM how to kidnap a member of Congress, House Homeland Security Chair Andrew Garbarino (R-NY) said, “It spit out an answer in under three seconds. [It offered] ways to find them, where to look for them. You know, the best spots to do it.” (Politico)

• Rep. Gabe Evans (R-CO) said, “What we saw in there with the jailbroken AI is what happens when you take those guardrails off of AI, and ask, ‘How do I make a nuclear bomb?’” (Politico)

• Rep. Andy Ogles (R-TN) said, “What’s extraordinary about this presentation is how most of [the AI tools] are readily off-the-shelf and easy to access. That just increases the probability that the wrong person gets their hands on this.” (Politico)

• Ogles posted “There is an AI arms race. Jailbroken AI used by our adversaries poses a monumental cyber threat. As Cyber Chairman, I am doing everything I can to stop it.”

• Rep. August Pfluger (R-TX) said, “It’s really scary, because what AI is supposed to do is have some guardrails on certain things like, ‘How would you terrorize a school?’ ‘What type of weapons would you use?’” (Politico)

TAKE IT DOWN Act

• On the TAKE IT DOWN Act, Senate Commerce Chair Ted Cruz (R-TX) said, “The Take It Down Act, which I authored with Senator Klobuchar, is instrumental in ensuring that predators who weaponize new technology to post exploitative filth will rightfully face criminal consequences. Because of our work to make it the law of the land, Big Tech can no longer turn a blind eye to the spread of this vile material. I am thrilled to see our legislation in action with this first conviction. Let it be known that individuals who commit these acts will be prosecuted to the fullest extent of the law.” (Press release)

• Sen. Amy Klobuchar (D-MN) said, “Last year, we passed our major bipartisan legislation to take on the brutal sharing of nonconsensual sexual images, real or deepfake. Kids tragically commit suicide over the sharing of these images, and we knew we had to act. Now we have some good news: the first conviction under this law was secured of an Ohio man who victimized multiple people with his creation of pornographic deepfakes online. This conviction sends a clear message — perpetrators of these heinous crimes will be held accountable.” (Press release)

No Fakes Act

• On his No Fakes Act to establish liability on the creation of unauthorized deepfakes of people’s voice or likeness, Sen. Chris Coons (D-DE) said, “We have enough votes now to get it out of committee. I’m very optimistic.” (Punchbowl)

• Sen. Thom Tillis (R-NC) added, “We’re getting a lot of support for it.” (Punchbowl)

• Sen. Marsha Blackburn (R-TN) said, “Protecting creators is a critical part of the national AI framework President Trump has called on Congress to pass to establish overdue guardrails in the virtual space.” (Punchbowl)

Potential Democratic Divide on AI Legislative Approach

• Rep. Alexandria Ocasio-Cortez (D-NY) said, “People need to feel more confident that their representatives are voting in the interests of their constituents, as opposed to the interests of their donors.” (Punchbowl)

• Rep. Yvette Clarke (D-NY) said, “To lock yourself out of any opportunities to have really high-level conversations about how this technology is being developed… is foolhardy.” (Punchbowl)

• Rep. Sam Liccardo (D-CA) said “As Democrats, it’s important for us to understand that AI is here to stay.” (Punchbowl)

• On accepting AI-backed campaign donations, Rep. Zoe Lofgren (D-CA) said, “Every company has AI in it now.” (Punchbowl)

• Sen. Bernie Sanders (I-VT) said, “Despite the inaction of Congress, despite the power of the tech lords, people are standing up and fighting back.” (Punchbowl)

Senate Banking, Housing and Urban Affairs Committee Hearing on the Nomination of Kevin Warsh to be a Member and Chairman Designate of the Federal Reserve Board of Governors Q&A

Chair Tim Scott (R-SC)

• Chair Tim Scott (R-SC): “I’m sure my colleagues on either side will have a conversation with you and ask questions about AI. The AI the AI future is going to have massive impact on where we go as a nation. It’s got a massive impact on your dual mandate as relates to full employment there, our production may go up or while our employment stays flat. So, this is a really important question that at some point we should delve into.”

Sen. Chris Van Hollen (D-MD)

• Sen. Chris Van Hollen (D-MD): “Well, let me just say this was a pretty clear question about the framework in which these decisions are made. I have heard you talk about how AI may change that calculation, I will just say, and I think you know this. You know, the Financial Times pointed out the economists reject Kevin Warsh’s claim that the AI boom will enable rate cuts. And I find it just implausible to suggest that by the end of this year, AI would produce such increases in productivity that it could reduce in a rate cut to below 1% and you can’t tell me that would very likely increase prices.”

  • Kevin Warsh: “So, Senator, can I say two things? Monetary policy, Senator, works with long and variable lags. Quite famously, if the Fed were to make a decision today about the conduct of policy, it’s likely to find its way to the real economy six, nine or 12 months later, so it’s difficult to judge policy today for an immediate result, and that would be my only concern about the framing of your question.”

Sen. Bernie Moreno (R-OH)

• Sen. Bernie Moreno (R-OH): “Let’s shift over to AI. A lot has been said about that, and I worry that some of my colleagues don’t feel that this is quote, unquote real or happening as quick as it is. It is happening insanely fast. In fact, would you agree that it could lead to an employment shock, especially for entry level white collar jobs?”

  • Kevin Warsh: “Senator, I agree with you on the pace of the technology revolution. I’ve had to update my own priors versus six or 12 months ago, as I’ve seen, the rate of improvement of the models. So now the way I describe it is this, I am more confident that there will be improved output than I am certain about when the effects of that would be on the labor market. I basically believe in the fallacious economic tenet, which is described as the lump of labor fallacy. We tend to think in economics, there’s only a fixed number of jobs, and we’ve got to fill them every day possible. The labor force, the structure of labor market, changes the jobs that will be created two or three years from now, some of which are unimaginable to us today, but the lag between the improvement and output and the effect on the labor markets. That’s got to be central to the Fed’s thinking, given the pace of innovation in this cycle.”

Sen. John Neely Kennedy (R-LA)

• Sen. John Neely Kennedy (R-LA): “…I’ve heard your argument the last few months about artificial intelligence has made us so productive, labor so productive, that companies don’t have to raise prices, therefore inflation isn’t a problem, therefore rates can be cut. Do you really believe that right now?”

  • Kevin Warsh: “That is not how I would characterize the story on AI.”

• Kennedy: “Okay, but you’ve said what I just said, haven’t you?”

  • Warsh: “I have said that this is the most disruptive moment in modern economic history, in the US and the world. I’ve said that artificial intelligence, AI…”

• Kennedy: “…Here’s my worry, that a lot of this stuff about artificial intelligence making us more productive is a bunch of hype by people who want to sell stock in an IPO. Okay, I’d be careful there.”

Sen. Lisa Blunt Rochester (D-DE)

• Sen. Lisa Blunt Rochester (D-DE): “I want to jump to AI, because it’s probably one of the number one issues that I hear about in my state. I’m former secretary of labor in Delaware. This is something that I asked Chair Powell when he was here as well, and a lot has happened in a year. You have characterized this as the most productivity enhancing wave of our lifetimes, past, present and future. You have described it as structurally dis-inflationary, and that central bankers must make a bet. I’m in the camp with Senator Kennedy. I’m concerned about us making a bet on something that we don’t know. You’ve said it, Chairman Powell said it. We don’t have the data to even understand yet, and so my first question is, what happens for policy if that surge doesn’t materialize as expected?”

  • Kevin Warsh: “Yeah, so Senator, I enjoyed our discussion. I think the essential elements of new policy for the Federal Reserve is to get access to better data and to dig deeper into the productivity possibilities that can come out of this new investment wave. Today, we call it artificial intelligence. Two years from now, we’re going to call it business capex, and three years from now, we’re going to call it just ordinary business. I think it has two important effects on the conduct of policy. I don’t claim to have perfect knowledge of how any of these are going to go, but I do have an intuition the pace of change is accelerating.”

• Blunt Rochester: “I was just going to ask how much of your view on interest rates depends on those productivity gains showing up quickly.”

  • Warsh: “Yeah. So, I think it has two elements. One is the increase in capital expenditures to build data centers and the rest that will have an effect on demand. That will increase demand, my guess is a few tenths of 1% but on the supply side of the economy, to increase the potential output of the economy that could be considerably bigger. We don’t know that. We can’t bank on that, but considerable work needs to be done by the Federal Reserve in evaluating this productivity wave. As I said before, monetary policy works with long and variable lags, so you have to make some informed judgments. And unlike other people in office, if the judgments are wrong, you’ve got to call the flag on yourself and correct them.”

• Blunt Rochester: “Well, I think there’s been a lot of conversation here about concerns that in your record and your history, you have been hawkish on inflation rates and keeping them low. And now we’re looking at AI. What I don’t want to see is us use AI as an excuse, yes, for making good policy. Too much depends on it. Too many families’ lives depend on it. And in our conversation, I also talked about the fact that I know Wall Street is going to be okay, but who we’re concerned about, as well, is Main Street.”

What I’m Reading This Week

IRS May Be Coming for Your Artificial Intelligence Chats, Tax Notes.

Anthropic’s ‘Mythos’ AI Can Hack Nearly Anything and We Aren’t Ready, Kemba Walden, Fortune.

He Warned About the Dangers of A.I. If Only His Father Had Listened, Teddy Rosenbluth, The New York Times.

Unauthorized group has gained access to Anthropic’s exclusive cyber tool Mythos, TechCrunch

Anthropic’s New A.I. Model Sets Off Global Alarms, Paul Mozur and Adam Satariano, The New York Times.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

The Commerce Department launched a new initiative to connect foreign governments pursuing “sovereign AI” with U.S. firms capable of delivering full-stack AI solutions, alongside a formal call for proposals to develop these American AI export packages.

Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell met with Wall Street executives to discuss Anthropic’s Mythos and its broader market implications.

Across Washington, policymakers are increasingly focused on rising public backlash against AI and its potential political ramifications.

On Capitol Hill, Republican working groups are preparing to release comprehensive proposals on AI and data privacy, while debates over reauthorizing Foreign Intelligence Surveillance Act authorities have intensified scrutiny of AI-enabled mass surveillance.

Read more below

Congress

Hearings

Last week

• On April 15, the House Education and the Workforce Subcommittee on Workforce Protections held a hearing on “Building an AI-Ready America: Understanding AI’s Economic Impact on Workers and Employers.”

• On April 15, the House Energy and Commerce Subcommittee Commerce, Manufacturing, and Trade held a hearing on “Computing Power and Competition: Examining the Semiconductor Ecosystem.”

• On April 16, the House Oversight Subcommittees on Economic Growth, Energy Policy, and Regulatory Affairs and Military and Foreign Affairs held a joint subcommittee roundtable on “Artificial Intelligence and American Power: Leadership, Security, and Prosperity.”

• On April 16, the House Select Strategic Competition Between the United States and the Chinese Communist Party Committee held a hearing on “China’s Campaign to Steal America’s AI Edge.”

This week

• On April 21, the House Armed Services Subcommittee on Cyber, Information Technology, and Innovation holds a hearing on “Cyber Posture of the Department of Defense.”

• On April 21, the House Science, Space and Technology Subcommittee on Research and Technology holds a hearing on “Robots Made in America: Advancing U.S. Leadership in Manufacturing and Automation.”

• On April 22, the Senate Judiciary Committee holds a hearing on “Stealth Stealing: China’s Ongoing Theft of U.S. Innovation.”

Legislation

• The Senate Commerce Committee unanimously passed the National Quantum Initiative Reauthorization Act.

• Reps. Bill Huizenga (R-MI) and John Moolenaar (R-MI) introduced the Deterring American AI Model Theft Act to prevent foreign adversaries from threatening the national security of the United States by extracting key technical features of closed-source, American-owned artificial intelligence models. (Text)

• Reps. Greg Stanton (D-AZ) and Darrell Issa (R-CA) introduced the Semiconductor Controls Effectiveness Act to require the Assistant Secretary of State for Intelligence and Research to submit a comprehensive report on the impact and effectiveness of United States semiconductor export controls on the People’s Republic of China. (Text)

Correspondence

• Ranking Member of the Senate Committee on Environment and Public Works (EPW) Sheldon Whitehouse (D-RI) sent a letter to Environmental Protection Agency Administrator Lee Zeldin requesting information on xAI’s operation of unpermitted gas turbines in Southaven, Mississippi and alleged illegal behavior in the region. (Letter)

• Sen. Elizabeth Warren (D-MA) sent a letter to Secretary of Defense Pete Hegseth and Secretary of Energy Chris Wright about NVIDIA’s acquisition of SchedMD, a developer of software used for high-performance computing systems for defense and nuclear security. (Letter)

Publications and Events

• The Congressional Research Service published a report cataloguing all CRS publications related to AI. (Report)

Trump Administration

Commerce Department

• Commerce launched the AI Consortia under its American AI Exports Program. The program’s goal is to connect foreign governments seeking “sovereign AI” with U.S. firms that can deliver the full stack. (AI Consortia)

• Commerce also published a related call for proposals for full-stack American AI export packages from industry-led “pre-set” consortia designated under the program. The deadline for proposals is June 30. (Federal Register)

Treasury Department and Federal Reserve

• Treasury Secretary Scott Bessent and Fed Chair Jerome Powell called a meeting with Wall Street financial institutions to discuss the risks posed by the capabilities of Anthropic’s Mythos. (Bloomberg)

Noteworthy Quotes and Events

ADMINISTRATION

White House

• After a meeting between Anthropic CEO Dario Amodei and White House chief of staff Susie Wiles, Treasury Secretary Scott Bessent, and National Cyber Director Sean Cairncross, the White House issued a statement saying, “We discussed opportunities for collaboration, as well as shared approaches and protocols to address the challenges associated with scaling this technology.” (Politico)

• On Anthropic’s Mythos model, OMB chief information officer Gregory Barbaccia wrote to federal agencies, “We’re working closely with model providers, other industry partners, and the intelligence community to ensure the appropriate guardrails and safeguards are in place before potentially releasing a modified version of the model to agencies.” (Politico)

Commerce Department

• On the AI Consortia, a Commerce official said, “The more people that are in a shared tech ecosystem, the more deal opportunities there are with our allies and partners. In the end, we’re helping companies and buyers.” (Politico)

Department of Energy

• DOE Secretary Chris Wright told the House Appropriations Subcommittee on Energy and Water, “The country as a whole is going very negative on AI, and this is a risk. It will be a loss to America if we stop this development and this investment and this improvement.” He added, “We need to change the public perception of AI. If we don’t market it better and we don’t communicate it better, we’re at risk.” (FedScoop)

CONGRESS

• Regarding working with other Republican members on a comprehensive AI bill, Rep. Jay Obernolte (R-CA) said, “It’s been an integrated conversation for the entire process…Only with all of us pushing together in the same direction are we going to succeed in getting anything done.” (Punchbowl)

• On the Republican working group drafting data privacy legislation that borrows from state laws, Obernolte said it’s “certainly important to be respectful of the role that the states play in being laboratories of democracy.” (Punchbowl)

• House China Committee Chair John Moolenaar (R-MI) said “China is dependent on our tech stack to continue their AI development… willing to buy what they can, and steal what they cannot, to advance their AI ambitions.” (Punchbowl)

• Rep. Marcy Kaptur (D-OH) said, “There’s more political signs against AI in our region than for candidates in the upcoming races. I don’t know what backlash there’s going to be, but I’m telling you it’s coming.” (FedScoop)

• Sen. Rand Paul (R-KY) posted, “Here is my message to every college student in America: Read books. Be well-informed. Be optimistic. AI will not destroy your future. In fact, every innovation in history has made us better off. This will too.”

• Rep. Chris Pappas (D-NH) posted “Big corporations are using your personal data and AI to charge you more for food, while they rake in record profits. It’s called surveillance pricing, and here’s how they do it.”

• Pappas also posted “Big corporations are raking in record profits while using AI surveillance pricing to raise costs on families who are struggling to put food on the table. It’s outrageous, and Congress needs to step up and put a stop to it immediately. That’s why I’m introducing the Lower Grocery Prices Act to ban this practice by corporations that jack up food prices and rip off Granite Staters.”

• Rep. André Carson (D-IN) posted “The stakes of AI – especially with China – could not be higher. If Chinese AI models win, we face a future of censorship and surveillance, and fall behind on sectors like manufacturing that drive Indiana’s economy. I led a hearing on why American AI must lead – to protect consumers and prepare for the future.”

• Sen. Maggie Hassan (D-NH) posted “AI voice cloning tools are helping scams become more personalized and harder to detect. That’s why I’m asking four companies with leading voice cloning technology to increase their efforts to deter scammers, prevent misuse, and protect Americans from fraud.”

• Rep. Sheri Biggs (R-SC) posted “America cannot afford to fall behind in the AI race.
  I joined a roundtable with my colleagues on the HouseForeignGOP to discuss how advanced chip manufacturing is vital in countering China’s growing influence and fostering high level job growth, right her at home.”

• Sen. Elissa Slotkin (D-MI) posted “In this week’s Intel Brief, we dig into a few big issues: An update on the war in Iran, How the war is causing rising costs across the board, NSPM-7, the President’s domestic terrorist executive order, A big development in AI on cyber vulnerabilities.”

• Sen. Marsha Blackburn (R-TN) posted “Congress needs to establish guardrails for AI. The TRUMP AMERICA AI Act would push the President’s agenda forward, unleash AI innovation, and protect the American people.”

• Rep. Eli Crane (R-AZ) posted “As a former service member, I recognize the risks of losing an AI arms race to the CCP. At the same time, we may be engineering our own destruction without realizing it. Mass layoffs and energy demands only scratch the surface of the potential consequences.”

• Sen. Mike Lee (R-UT) posted “FERC is moving to integrate high-energy users into the bulk transmission system. The U.S. must win the AI race in a way that protects American ratepayers. Thank you, LauraSwettFERC, for taking decisive action on SecretaryWright’s proposal.”

• House Homeland GOP posted “Rather than investing years of effort and billions of dollars in frontier research, China-backed AI companies like DeepSeek are feeding outputs from leading American AI systems into their training pipeline, illicitly reverse-engineering the capabilities without including the same safeguards. This is both a national security threat and a supply chain vulnerability––and American innovators are sounding the alarm.”

• Sen. Dave McCormick (R-PA) posted “AI is going to define the future of our economy and national security. America must lead—not China. We need to invest in innovation, unleash American energy, and back American workers so the next generation of jobs and breakthroughs happens here.”

• Sen. Bernie Sanders (I-VT) posted “As my friends in the labor movement said: We’re not going to stop until AI works for us, not the billionaires. Listen to what we had to say about AI oligarchs trying to replace workers with robots.”

• Sanders also posted “When it comes to AI, we’ve heard this story before. We’ve heard the ruling class come forward and say, ‘Unfettered free trade. What a great thing it’s going to be for the American worker.’ They lied.”

• Sanders also posted “What the AI oligarchs want to do is replace human workers.
  Well, some of us are old-fashioned, and we believe in human beings.”

• Sanders also posted “The same oligarchs who shipped jobs overseas now want to replace tens of millions of American workers with AI. Our message to them is: Go to hell.”

• Sanders posted “AI and robotics will impact our economy, our politics, our privacy, our emotional well-being, our environment, and even our survival on this planet. Join me, Rep. Ro Khanna and Naomi Klein for a discussion on how we confront the threat of AI.”

• Rep. Suzan DelBene (D-WA) posted “Trump promised he’s ‘not going to touch’ Medicare but HHS Secretary Kennedy approved a program to use AI to deny medical care & treatments for seniors. I pressed RFK on this at today’s Ways & Means hearing.”

• DelBene also posted “In January, Trump’s Health Department started allowing private companies to use AI to delay & deny care for seniors. Read my op-ed on how this program is frustrating patients & making conditions worse.”

• Rep. Greg Casar (D-TX) posted “Mass surveillance has been a problem under presidents of both parties. Trump’s disregard for the rules makes it more dangerous. AI could supercharge the problem. I’ll be voting no.”

• Casar also posted “Screw this. If anyone’s looking to see the dynamic that’s broken the Democratic Party in just a few paragraphs, you can look here. AI could kill millions of jobs. Democrats absolutely should not roll over and play dead.”

• Casar also posted “Executives say AI could put millions of Americans out of work.
  But Republicans in Congress are doing nothing about it. Why? Maybe because the AI industry is planning to spend hundreds of millions of dollars in the next election.”

• Rep. Hillary Scholten (D-MI) posted “Proud to have Google endorse my AI for Main Street Act and AI WISE Act. These bipartisan bills will help connect small businesses with the tools and training they need to compete, grow, and keep up with a changing economy. It’s about making sure Main Street isn’t left behind.”

• Rep. Greg Landsman (D-OH) posted “Our communities need a national guarantee that AI data centers won’t cost families anything, and that every deal is fully transparent (no more NDAs). Our bill does that.”

• Sen. Dave McCormick (R-PA) posted “AI will shape our economy, our security, and our future. If America doesn’t lead, China will. PA can lead—but only if investment comes with a real covenant to our communities: create jobs, protect our environment, and keep energy costs off ratepayers and taxpayers. PA has the talent, energy, location, and infrastructure to win. Now we make sure that win delivers for every Pennsylvanian.”

• Rep. Ro Khanna (D-CA) posted “The US’s use of AI in war is deeply asymmetrical. The people who were killed in the genocide in Gaza, the starving people in Cuba, and the people who we’re killing in Iran don’t have access to that technology. It has taken away the moral deliberation over the dignity and worth of the people we’re killing.”

• Sen. Ed Markey (D-MA) posted “I introduced the Youth AI Privacy Act to protect kids from the harms of AI chatbots. No ads to kids. No profiling. No addictive design tricks. Children and teens’ privacy must come first.”

• Sen. Mark Kelly (D-AZ) posted “It’s pretty simple: AI’s impact will be determined by the people who put it to use. I’m pushing the Trump Administration to include workers in shaping AI policy, starting with the AFLCIO’s principles to protect workers.”

• Rep. Lloyd Doggett (D-TX) posted “Decisions about human life and death should never be subcontracted to a machine. With AI entering the battlefield and playing a large role in our military, the need for clear rules and accountability is becoming urgent.”

• Sen. Ron Wyden (D-OR) posted “The Federal Government – ICE, FBI, and more – is spying on you without a warrant. This week, Congress will decide whether Kash Patel, Stephen Miller and Trump can keep spying on Americans. If that scares you (it should) this thread is for you. There is a little-known law called Section 702 of FISA. The federal government has abused it over and over to try and spy on Americans, including protestors, elected officials – one NSA employee even spied on people he met through an online dating app. That’s not all. Current law also lets the Feds buy all sorts of sensitive data on you from shady data brokers, with just a credit card. The Feds can feed that data into powerful AI systems to spy on you. Kash Patel recently confirmed to me he’s buying your location data. These powers are terrifying. ICE shouldn’t be able to buy lists of protestors. Kash Patel shouldn’t be able to spy on women getting abortion medications. Stephen Miller shouldn’t be able to spy on critics, claiming connections to foreign ‘antifa threats.’ I’ve been fighting these abuses for years. But few administrations have posed as big a threat as this one. Congress CANNOT rubber-stamp more unchecked spying powers for any President, let alone Trump. Everyone should be able to agree: The government has no business buying up data on Americans with no checks and oversight. The government has no business using *foreign* surveillance powers to spy on Americans. My bill, the Government Surveillance Reform Act, would close all of these loopholes and finally provide real privacy for Americans. Congress must pass the reforms in this bill and restore Americans’ rights against advances in AI and surveillance tech.”

• Wyden delivered remarks on the Senate floor regarding the reauthorization of FISA section 702 foreign surveillance authority, saying, “I want to talk about the implications of artificial intelligence on this debate, and these are fairly new developments that I think most Senators have not heard. The CEO of one of America’s largest A.I. companies sounded this warning several years ago. He did so in concern with his multimillion-dollar contract with the Department of Defense here’s what this CEO said. A.I.-driven mass surveillance presents novel risks to our fundamental liberties. To the extent that this is legal, this is only because the laws have not caught up with the rapid capabilities of A.I. For example, under current law, the government can purchase detailed records of Americans’ movements, web browsing, and associations from public sources. Powerful A.I. makes it possible to assemble this scattered, individually innocuous data into a picture of anybody’s personal life automatically and at massive scale. This is one of the most powerful voices in the field of A.I., Mr. President. I’m citing somebody who really understands the underpinnings of what A.I. is all about, and he’s warning Congress about the impact of A.I.-powered surveillance. Let me repeat that. One of the most powerful voices in the field of A.I. is warning Congress at this time about the impact of A.I.-powered surveillance… I recently wrote to several leading A.I. companies to ask them about whether government agencies could use their products to analyze information about Americans collected through this kind of bulk surveillance. None of them denied that their products could be used this way. I want Americans’ intelligence and law enforcement agencies to take advantage of new technologies that can help them protect public safety and national security, but, Mr. President, new tools require new rules, and without new rules, you can count on the Executive Branch to run roughshod over Americans’ privacy rights and constitutional freedoms. It’s not hard to see how these capabilities could be abused, especially to target immigrants a -- people attending protest rallies, women seeking abortions, Donald Trump’s other perceived enemies.”

What I’m Reading This Week

• Algorithmic Entities and the Code: When AI Creates Taxable Presence, Mohsen Ghazi, Tax Notes.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

Contact us at Stacey@ZeroOneStrategies.com

www.ZeroOneStrategies.com

Legislative momentum around AI continues to accelerate. Following the release of President Trump’s AI legislative framework, House Republican leaders reportedly plan to open negotiations with Democrats on a comprehensive AI package. In the Senate, Commerce Committee Chair Ted Cruz (R-TX) is reportedly preparing to “solicit member feedback about what needs to be in an AI bill” ahead of expected consideration in the coming months. Although legislative activity typically slows before the August recess in an election year, the annual end-of-year National Defense Authorization Act (NDAA) often serves as a reliable vehicle for advancing AI and emerging technology proposals.

Not that Congress has been idle on AI to date. Multiple committees have advanced measures, including the CHIPS Security Act, Protect American AI Act, Protect America’s Innovation and Economic Security from the CCP Act, and the National Quantum Initiative Reauthorization, which cleared their respective committees last week.

Meanwhile, the Administration is building out its AI agenda. President Trump has appointed the first members of his President’s Council of Advisors on Science and Technology (PCAST), Treasury has launched a series of AI-focused roundtables, and the CFTC has established a new Innovation Task Force.

DC/ai Decoded will return on April 20. Enjoy spring break!

Read more below

Congress

Hearings

Last week

• On March 25, the House Judiciary Courts, Intellectual Property, Artificial Intelligence, and the Internet Subcommittee held a hearing on “Oversight of the U.S. Patent and Trademark Office.”

• On March 25, the Joint Economic Committee held a hearing on “The Rising Global Scam Economy: Modernizing Federal Approaches to Protect Americans from Foreign Fraudsters.”

• On March 26, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee held a hearing on “Innovation at the Speed of Markets: How Regulators Keep Pace with Technology.”

Legislation

• The House Foreign Affairs Committee passed the Chip Security Act to curb the smuggling of American semiconductors to foreign adversaries.

• The House Judiciary Committee passed the Protect American AI Act to limit the effect of litigation on the environmental application process for data centers and associated infrastructure and the Protect America’s Innovation and Economic Security from CCP Act.

• The Senate Commerce Committee passed the National Quantum Initiative Reauthorization.

• Sens. Brian Schatz (D-HI), Chris Coons (D-DE), Chris Murphy (D-CT), Tammy Duckworth (D-IL), Lisa Blunt Rochester (D-DE), and Andy Kim (D-NJ) and Reps. Don Beyer (D-VA), Doris Matsui (D-CA), Ted Lieu (D-CA), Sara Jacobs (D-CA), and April McClain Delaney (D-MD) introduced the Guaranteeing and Upholding Americans’ Right to Decide Responsible AI Laws and Standards (GUARDRAILS) Act to repeal President Trump’s executive order seeking to prevent states from regulating artificial intelligence. (Text)

• Reps. Don Beyer (D-VA), Mike Lawler (R-NY), and Sara Jacobs (D-CA) introduced AI Foundation Model Transparency Act to direct the Federal Trade Commission to establish requirements for making information available to the public about the training data and algorithms used in artificial intelligence foundation models. (Text)

• Senate Republican Conference Chair Tom Cotton (R-AR) and Senate Democratic Leader Chuck Schumer (D-NY) introduced the American Security Robotics Act to prohibit the federal government from procuring and operating unmanned ground vehicles made by foreign adversaries, specifically Communist China. Rep. Elise Stefanik (R-NY) introduced companion legislation in the House. (Text)

• Sen. Bill Cassidy (R-LA) reintroduced an amended version of the Health Care Cybersecurity and Resiliency Act to require the Secretary of Health and Human Services and the Director of the Cybersecurity and Infrastructure Security Agency to coordinate to improve cybersecurity in the health care and public health sectors. (Text)

• Sen. Ed Markey (D-MA) introduced a bill to require entities that make artificial intelligence chatbots available to minors to implement certain safe design features. (Text)

• Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) introduced a bill to halt the construction of new data centers until comprehensive federal regulations are passed to mitigate the risks associated with artificial intelligence. (Text)

• Sens. Kirsten Gillibrand (D-NY) and Marsha Blackburn (R-TN), Senate Democratic Leader Chuck Schumer (D-NY), and Reps. Laura Gillen (D-NY) and Jay Obernolte (R-CA) introduced the Advancing Regional Quantum Hubs Act to amend the National Quantum Initiative to require support for regional quantum innovation initiatives and enhance the educational and research capabilities of regions that have strengths in quantum fields. (Text)