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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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

www.ZeroOneStrategies.com

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

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)

Correspondence

• Sens. Kirsten Gillibrand (D-NY), Mark Warner (D-VA), Mark Kelly (D-AZ), Elissa Slotkin (D-MI), Tim Kaine (D-VA), and Chris Coons (D-DE) sent letters to xAI, OpenAI, Alphabet, Meta, AWS, and Microsoft AI seeking information on their engagements with the Department of Defense (DoD), the rules under which DoD can access and use their technology, and the internal controls that exist in the event their technology is misused by DoD. (Letter)

• Sens. Jim Banks (R-IN), and Elizabeth Warren (D-MA) sent a letter to Secretary of Commerce Howard Lutnick urging the Department of Commerce’s Bureau of Industry and Security (BIS) to immediately pause and conduct a full review of all active export licenses covering advanced Nvidia AI chips and server systems destined for China and Southeast Asian countries, including Malaysia, Thailand, Vietnam, and Singapore. (Letter)

• Rep. August Pfluger (R-TX) sent a letter to the Government Accountability Office (GAO), requesting a comprehensive review of how violent extremists and malicious actors weaponize emerging technologies and applications in AI-enabled terrorism. (Letter)

• Sens. Elizabeth Warren (D-Ma) and Richard Blumenthal (D-CT) sent a letter to NVIDIA CEO Jensen Huang requesting information on whether the company’s deal with Groq, an AI chip startup and competitor, is intended to avoid antitrust laws. (Letter)

• Sen. Elizabeth Warren (D-MA) sent a letter to Department of Defense (DOD) Secretary Pete Hegseth requesting information on DOD’s decision to designate Anthropic a “supply chain risk” and its contract with OpenAI. (Letter)

• Rep. Lance Gooden (R-TX) sent a letter to Department of Energy Secretary Chris Wright expressing strong support for the Genesis Mission to deploy artificial intelligence across America’s scientific ecosystem and strengthen U.S. competitiveness against China. (Letter)

Publications, Meetings, and Events

• Reps. Terri Sewell (D-IL) and Ways and Linda Sánchez (D-CA) released a report from the Government Accountability Office (GAO) on artificial intelligence and the Internal Revenue Service (IRS), and what actions the agency must take to address skills gaps, information quality, and strategic management. (Report)

• The House Democratic Commission on Artificial Intelligence reportedly held a listening session with of members of the Congressional Black Caucus, Congressional Hispanic Caucus and Congressional Asian Pacific American Caucus. (Washington Post)

Trump Administration

White House

• President Donald Trump appointed the first members to his President’s Council of Advisors on Science and Technology (PCAST), co-chaired by David Sacks and Michael Kratsios. Members include Marc Andreessen, Sergey Brin, Safra Catz, Michael Dell, Jacob DeWitte, Fred Ehrsam, Larry Ellison, David Friedberg, Jensen Huang, John Martinis, Bob Mumgaard, Lisa Su, and Mark Zuckerberg. (Press release)

• First Lady Melania Trump convened First Spouses from 45 countries at the White House for a Global Summit on the role of artificial intelligence and education. Trump focused on the use of artificial intelligence to personalize learning, the emergence of humanoid educators as at-home tools for students, and the role of technology and education as a driver for America’s economy. She also introduced an American-made humanoid system. (Press release)

Treasury Department

• The Office of the Financial Stability Oversight Council (FSOC) and the Treasury Department’s Artificial Intelligence Transformation Office (AITO) launched the AI Innovation Series, a series of four roundtables convening financial institutions, technology firms, regulators, and specialized experts to explore the highest-value AI use cases and identify practical approaches to scaling innovation while preserving safety and soundness. (Press release)

U.S.-China Economic and Security Review Commission (USCC)

• The USCC published a report on “Two Loops How China’s Open AI Strategy Reinforces Its Industrial Dominance.” (Report)

Government Accountability Office (GAO)

• GAO published a report on “Artificial Intelligence: IRS Actions Needed to Address Skills Gaps, Information Quality, and Strategic Management,” finding staff reductions have impacted the IRS’s AI modernization efforts and recommending the IRS “(1) identify skills gaps and develop an AI workforce plan; (2) implement a comprehensive quality assurance process for AI inventory entries; (3) clarify internal communications to ensure all AI use cases are included in the inventory; and (4) require reporting on use case alignment to strategic goals.” (Report)

State Department

• The State Department launched the Bureau of Emerging Threats, tasked to respond to dangers posed by Iran and other U.S. adversaries’ weaponization of advanced technology, including artificial intelligence. (ABCNews)

Noteworthy Quotes and Events

ADMINISTRATION

Federal Reserve

• Fed Governor Lisa Cook delivered remarks on “Reflections on Financial Stability” in which she said, “… we should embrace responsible changes that strengthen our financial system, not hinder them. The Committee on Financial Stability and the Board’s staff monitor financial and technological innovations that are in early stages of development, including digital assets and the use of artificial intelligence. The fact that the U.S. financial system is the largest and deepest in the world is the result of decades of successive, and transformative, financial and technological innovations. As a corollary, we need to understand innovations at early stages to see the system’s trajectory. We have also observed innovations that have brought unintended consequences, and we need to stay abreast of potential risks in order to better understand where guardrails and industry engagement might be helpful.” (Remarks)

State Department

• On the new Bureau of Emerging Threats, State Department principal deputy spokesperson Tommy Pigott said, “The bureau will address not only the current threats we face today in cyberspace, outer space, critical infrastructure, and through the misuse of disruptive technology like AI and quantum, but those we will face in the decades ahead.” (ABCNews)

Commodity Futures Trading Commission (CFTC)

• CFTC Chair Michael Selig posted “Crypto, AI and prediction markets are transformative and synergistic technologies. It’s critical that our laws and regulations accommodate the innovators and job makers in these industries, like APompliano, who is an entrepreneur and investor himself. The CFTC will develop fit-for-purpose rules so these technologies can flourish on US soil.”

• Selig also posted “Smart AI regulatory policy is critical to America winning the AI race. Under my leadership, the CFTC will apply the minimum effective dose of regulation to AI technologies.”

White House

• White House Adviser David Sacks posted “Today I spoke at HillValleyForum about the White House’s new National AI Framework. A vital part of it is our support for the online safety of children. Our north star is parental empowerment. I want to decide which apps my kids use and for how long. Probably you do too. I don’t want the government making those choices for me.”

CONGRESS

• On his discussions with Fed Chair nominee Kevin Warsh, Sen. Mark Warner (D-VA) said “In my conversation with him, he thought the single biggest item that he will have to address is AI and the economic consequences. To me, that’s pretty powerful coming from the potentially future Fed chair.” (Punchbowl)

• Warner told reporters, “I would love to have an AI framework that would provide federal preemption, but that would mean you’d have a single national law.” He added, “One of the reasons why I don’t have a lot of faith that we will get to enough federal safety rules that would give me comfort to go to preemption is because I have all the scars of multiple major, much more important guardrails on social media, and we did zippo.” (Politico)

• At the Hill and Valley Forum in Washington, Speaker Mike Johnson (R-LA) pushed for codifying the President’s AI agenda, saying, “To succeed, you all need confidence that tomorrow’s rules are going to be coherent and consistent and follow common sense iterations of the rules that we established today. that’s why Congress will utilize existing structures to establish safeguards and rules of the road, so to speak, without smothering the whole marketplace with red tape.” (Politico)

• Johnson also said, “We have to move at the speed that victory demands. Inaction is unacceptable. And while the window for American AI leadership is open, it will not stay open indefinitely,” Speaker Johnson said. “As the Speaker of the House and ultimately somebody who’s going to help spearhead this effort in Congress, this is our commitment in a simple summary: simplify and streamline where we can, regulate only where we must, and pave the way for American dominance.” (Press release)

• Johnson also said, “When President Trump took office, he gave us all a monumental task. He said we have to make America the world leader in artificial intelligence. Just as back then, the challenge of this generation will require a reinvigoration of American science and technology… Here in Congress, we want to ensure American AI is the gold standard of the future and we intend to do that.” (Benzinga)

• Johnson posted, “America will win the AI race – but only if government resists the siren song of control and industry steps up as our patriotic partner. In Congress, we want to ensure American AI is the gold standard of the future – and we intend to do so.”

• In remarks at The Hill & Valley Forum, House Select Committee on China Chair John Moolenaar (R-MI) said, “I still think the best case is when you have the freedom to innovate, less burdensome government regulation, more free trade with free countries, but when you’re competing against China, who violates so many of those principles of free trade, then it requires almost like a defense mentality, where you’re saying, ‘Okay, let’s use every tool possible to make sure we win this competition.’ And so I think my hope is that it’s more of a temporary kind of thing, until our technology gets to the level where we know we can win this competition, and we’re not dependent on China. But the difference between when we were in a Cold War with the Soviet Union, we weren’t dependent on the Soviet Union for so many things, whereas in this case, we’re actually dependent on our chief rival, and we have to stop enabling them to continue to defeat us on this.” (Press release)

• Sen. Mark Kelly (D-AZ) delivered remarks at Seed AI’s America AI Festival in which he previewed his legislation to ensure community participation in AI infrastructure project development, saying, “Building on the ideas from my AI for America roadmap, I’ve been working on a new bill to do exactly that. It’s pretty simple: bring developers and communities together at the beginning to work through the details—what a project means for energy, water, infrastructure, and jobs—and put real commitments on the table. The people building the data centers commit to delivering real, long-term benefits for communities like local hiring, paying for infrastructure, and keeping utility rates low. My framework includes public input, clear timelines, and enforceable agreements—so communities and workers have a real say in how these projects take shape, and developers have the certainty they need to move forward. Clear expectations. Tangible community benefits. Real accountability. No surprises.” (Press release)

• Sen. Ted Budd (R-NC) posted “The AI expansion is creating a blue-collar boom—creating more jobs for electricians, construction workers, and skilled technicians. It’s the tradespeople building the physical infrastructure behind the technology who will power America’s AI agenda.”

• Sen. Rand Paul (R-KY) posted “It took one week and an AI detection system to flag 70 suspected fraudulent Medicaid providers in Los Angeles. The real question is why the federal government went decades without bothering to look.”

• Rep. Greg Casar (D-TX) posted “Good. Companies shouldn’t be able to use your personal data to rip you off using AI. Now Congress should pass my bill to ban surveillance pricing nationwide.”

• Rep. Tom Kean (R-NJ) posted “Artificial intelligence is advancing faster than ever. And today on NationalAILiteracyDay, we are called to ensure that the next generation is prepared to use AI effectively and responsibly. I recently introduced the LIFT AI Act, bipartisan legislation that brings AI education into classrooms and gives students the tools they need to succeed in a world driven by innovation. We must support America’s students so they can thrive in a future increasingly shaped by artificial intelligence.”

• Rep. Zach Nunn (R-IA) posted “Artificial intelligence is changing the rules of the road, and foreign adversaries are exploiting it to push scams and misinformation. Our AI Plan Act brings federal agencies together to close gaps, crack down on fraud, and keep innovation and leadership where it belongs: here in the U.S.”

• Sen. Chris Van Hollen (D-MD) posted “A judge has paused Hegseth’s efforts to punish Anthropic. Remember: This is a US company punished for not wanting their AI to kill without human involvement or be used for mass surveillance of Americans. These attacks are another shameless play by this lawless Admin.”

• House Foreign Affairs Committee Majority posted “Last week, TheJusticeDept indicted three people for smuggling AI chips, and it’s just the tip of the iceberg. The Chips Security Act is vital for keeping advanced chips out of the hands of China, so they can no longer use our technology to get ahead in the AI arms race.”

• Rep. Bill Foster (D-IL) posted “Thrilled that my Chip Security Act with RepHuizenga, RepMoolenaar, and CongressmanRaja passed through committee! This is an important—and bipartisan—step to prevent powerful AI technology from getting into the wrong hands.”

• Rep. David Schweikert (R-AZ) posted “A grandmother is stuffing money into a Bitcoin machine. The owner knows it is fraud and tries to stop her. She lies to him anyway because the stranger on the phone already has her believing the lie. That is what AI changes. It can pull details off social media and put a familiar voice on the line. That is how the fraud starts to sound real. Then the transfer goes through before the family even knows there is a problem. My own father has been scammed multiple times. We need to stop treating this like a simple education problem and start stopping the transfer before the savings are gone.”

What I’m Reading This Week

• AI Model Validation in Regulated Financial Firms: Supervisory Expectations and Practical Considerations, Frank J. Weigand and Louis Capizzi, CahillNXT.

• Korea Didn’t Just Regulate AI, It Designed a System Around It, Zee Cindy, KoreaTechDesk.

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 White House has released a National AI Legislative Framework that includes federal preemption of state laws.

In Congress, lawmakers are accelerating efforts to introduce substantive AI regulatory proposals, setting the stage for coordinated, multi-jurisdictional action in the next Congress, if not sooner. Meanwhile, Senate Commerce Chair Ted Cruz (R‑TX) signaled that his committee plans to take up AI-related issues in the coming weeks.

Read more below

Congress

Hearings

Last week

• On March 17, the House Financial Services Committee holds a hearing on “Updating America’s Financial Privacy Framework for the 21st Century.”

• On March 17, The Senate Judiciary Committee holds a hearing on “Stealth Stealing: China’s Ongoing Theft of U.S. Innovation.”

• On March 17, the House Homeland Security Cybersecurity and Infrastructure Protection Subcommittee holds a hearing on “DeepSeek and Unitree Robotics: Examining the National Security Risks of PRC Artificial Intelligence, Robotics, and Autonomous Technologies and Building a Secure U.S. Technology Base.”

This week

• On March 25, the House Judiciary Courts, Intellectual Property, Artificial Intelligence, and the Internet Subcommittee holds a hearing on “Oversight of the U.S. Patent and Trademark Office.”

• On March 25, the Joint Economic Committee holds 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 holds a hearing on “Innovation at the Speed of Markets: How Regulators Keep Pace with Technology.”

Legislation

• Sen. Marsha Blackburn (R-TN) released a discussion draft of The Republic Unifying Meritocratic Performance Advancing Machine intelligence by Eliminating Regulatory Interstate Chaos Across American Industry (TRUMP AMERICA AI) Act to protect children, creators, conservatives, and communities from exploitation, abuse, and censorship and ensure American AI companies can innovate without “cumbersome regulation.” The draft framework includes Blackburn’s has previously introduced bills, the Kids Online Safety Act and NO FAKES Act. (Text)

• Sens. Roger Wicker (R-MS) and Peter Welch (D-VT) and Rep. Harriet Hageman (R-WY) introduced the Research and Oversight of Artificial Intelligence in Courts Act of 2026 to establish a task force of judicial experts to examine the integration of AI speech-to-text and automatic speech technologies in American courts. (Text)

• Sen. Elissa Slotkin (D-MI) introduced the AI Guardrails Act to establish left and right limits on how the Department of Defense can use AI by banning the DOD from firing autonomous weapons to kill without human authorization, prohibiting the use of AI to spy on Americans and to launch nuclear weapons. (Press release)

• Sens. Ted Budd (R-NC) and Andy Kim (D-NJ) introduced the Artificial Intelligence Ready Data Act to create a modern federal approach to opening government data assets to train and develop stronger American artificial intelligence models. (Text)

• 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 Donald Trump’s executive order entitled “Ensuring a National Policy Framework for Artificial Intelligence.” Sen. Brian Schatz (D-HI) will introduce companion legislation in the Senate. (Text)

• Reps. Kevin Mullin (D-CA), Debbie Dingell (D-MI), Doris Matsui (D-CA), Darren Soto (D-FL), Rashida Tlaib (D-MI), Jennifer McClellan (D-VA), and Kim Schrier (D-WA) introduced the CHATBOT Act to prohibit AI chatbots from impersonating licensed professionals in the medical, legal, and financial fields. (Text)

• Reps. Suhas Subramanyam (D-VA) and Jay Obernolte (R-CA) introduced the Small AI Innovators Empowerment Act to direct the Department of Commerce, in collaboration with NIST and the SBA, to conduct a study on challenges faced by small artificial intelligence businesses across the country, including federal and non-federal funding opportunities for small AI businesses, including early and seed funding; the ability of small AI businesses to access R&D tax credits; downstream policy impacts on small AI businesses, including regulatory uncertainty; and talent and recruitment challenges faced by small AI businesses. (Press release)

Correspondence

• Senate Select Committee on Intelligence Vice Chair Mark Warner (D-VA) sent letters to OpenAI, Anthropic, xAI, Meta, Adobe, ElevenLabs, Cohere, Microsoft, MidJourney, Canva, Snap, Google, Synthesia, TikTok US, BlueSky, Pinterest, and Reddit urging them to take action against maliciously manipulated media, such as deepfakes, with a series of measures centered around transparency, collaboration, and means of enforcement. (Letter)

• Senate Intelligence Committee Chair Tom Cotton (R-AR) and Rep. Bill Huizenga (R-MI) sent a letter to Secretary of Commerce Howard Lutnick raising concerns about large-scale advanced AI chip smuggling, in light of the recent indictments of Super Micro Computer employees. They request Lutnick begin implementing the anti-diversion provisions in the Chip Security Act to prevent China from stealing U.S. advanced technology and undermining the Trump administration’s current export control policy. (Letter)

Publications, Meetings, and Events

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

Trump Administration

White House

• The Trump Administration released its National AI Legislative Framework, addressing six key objectives: Protecting Children and Empowering Parents; Safeguarding and Strengthening American Communities; Respecting Intellectual Property Rights and Supporting Creators; Preventing Censorship and Protecting Free Speech; Enabling Innovation and Ensuring American AI Dominance; and Educating Americans and Developing an AI-Ready Workforce; plus, Establishing a Federal Policy Framework, Preempting Cumbersome State AI Laws. (Framework)(Fact sheet)

Commerce Department

• Commerce withdrew a proposed regulation to limit exports of advanced artificial intelligence chips worldwide without prior approval from the US government. The draft rule was intended to replace the January 2025 Biden-era regulation on global access to AI chips. (Reuters)

National Institute of Standards and Technology (NIST)

• On March 27, NIST holds a virtual meeting of the Visiting Committee on Advanced Technology for an update on major programs at NIST, strategic priorities, and budget.

Noteworthy Quotes

ADMINISTRATION

The White House

• The White House posted “The Trump administration is committed to WINNING the AI race for the American people. President Trump has unveiled a commonsense national policy framework in order to achieve this goal while keeping Americans safe. Today, the Trump Admin is demonstrating that leadership by issuing a comprehensive national legislative framework that addresses the most pressing policy topics that AI presents. This framework addresses six key objectives.”

• The White House also posted “The Trump Admin is all-in on WINNING the AI race—for American prosperity, security, & a new era of human flourishing. Achieving these goals demands a commonsense national policy framework: unleashing American industry to thrive, while ensuring ALL Americans benefit.”

• White House AI & Crypto Czar David Sacks posted “In December, President Trump signed an Executive Order tasking us with the development of a national framework for AI, what he called ‘One Rulebook.’ ... Today we are releasing that framework. It will help parents safeguard their children from online harm, shield communities from higher electric bills, protect our First Amendment rights from AI censorship, and ensure that all Americans benefit from this transformative technology. I want to thank President Trump for the opportunity to work on this alongside OSTP Director Michael Kratsios, US CTO Ethan Klein, NEC Deputy Director Ryan Baasch, Senior AI Adviser Sriram Krishnan and many others on the White House team. It’s an honor.”

• Sacks also posted “’The Effective Altruist movement has a structural problem when it comes to conservative America. Its donor class is all Bay Area progressives... Its policy agenda, which calls for sweeping AI regulation and content governance, reads to most conservatives as exactly what it is: a censorship power play dressed up in safety language. To move that agenda… the movement needed a vehicle that didn’t look like it came from them.’”

Department of Defense (DOD)

• Terry Kalka, director of the DOD-Defense Industrial Base Collaborative Information Sharing Environment (DCISE), delivered remarks at the Elastic Public Sector Summit, saying, “I don’t think we’ve gotten to a point where we get a report and we go ‘ah, that was an AI attack there.’ [But] the general trends you see about the increasing numbers of attacks, abandoning of traditional forms of malware, using more sophisticated attacking, living off the land, discovery of zero days — we’re seeing those trends increase pretty much commensurate with what you see in the public. And so we can connect that probably with the ratio of AI… And what really hit home for me just the other day as I was looking at sort of a standard attack kill chain and seeing how much of that can be time-differenced through AI, you can really build a model as an attacker that all you need to do is sort of set basic context [such as directing the model to] ‘go look at this organization, come back to me with, you know, vulnerabilities and what we can get out of them, prioritize them for me. OK, go exploit this. Come back to me when you have, you know, data that I can use and exploit further.’ And … we need our defenders to be thinking along that mindset as well.” (FedScoop)

CONGRESS

National AI Legislative Framework

• House Committee on Financial Services Chair French Hill (R-AR) issued a statement on the Trump Administration National AI Legislative Framework, “I commend President Trump for releasing a thoughtful National Legislative Framework for AI that pairs innovation with targeted safeguards. As Congress moves forward, advancing regulatory sandboxes and a flexible, sectoral based approach will be critical to enabling responsible development. The Committee has long supported a pro-innovation, pro-consumer, pro-investor approach to AI, including through a bipartisan resolution earlier this year. The United States must maintain a ‘try-first’ mindset to preserve our leadership in the global AI race.” (Press release)

• Sen. Mark Warner (D-VA) issued a statement saying, “Today’s AI legislative framework takes some steps in the right direction but lacks significant substance. We need laws on AI and children’s privacy and data, including the kinds of user-empowering tools I’ve long championed in bipartisan legislation. We need to do more on deepfake non-consensual intimate images, as I’ve advocated for years now. We need laws to ensure that AI benefits all Americans, like my bipartisan Economy of the Future Act is designed to develop. We need researchers, students, and small businesses to have access to AI tools to ensure that development of this technology isn’t concentrated in the hands of a few large companies. We also need national security agencies to establish plans to mitigate against national security threats from advanced AI. But, two years in a row, the Senate Intelligence Committee passed bills that would have required that kind of proactive engagement strategy to get ahead of malicious foreign actors. And two years in a row, President Trump’s allies in Congress killed those provisions from being enacted into law. Unfortunately, this slim framework also does many things wrong. The framework is worse than silent on AI-powered mis- and disinformation, a real and growing threat to our elections, our markets, and our country. Instead, it trots out the same old talking points about combatting partisan or ideological bias to cloak its own inaction on – and worse, its encouragement and use of - deepfakes and other AI slop being used for a wide range of harmful activity. Furthermore, it once again raises the threat of preempting state’s ability to regulate AI where AI affects their citizens and institutions; notably, the administration’s last attempt to do Big AI’s bidding was defeated 99-1 in the Senate last year. Overall, it reminds me of the administration’s cybersecurity strategy: several pages of broad goals, all of them short on substance.” (Press release)

• House Speaker Mike Johnson (R-LA), Majority Leader Steve Scalise (R-LA), Energy & Commerce Committee Chair Brett Guthrie (R-KY), Judiciary Committee Chair Jim Jordan (R-OH), and Science, Space, and Technology Committee Chair Brian Babin (R-TX) released a statement saying, “AI has begun to demonstrate its potential to improve Americans’ lives. To ensure we continue to harness its potential and beat China in the global AI race, Congress must take action. Today, the Trump Administration took a critical step in releasing a framework that gives Congress a roadmap to pursue legislation that provides innovators with much-needed certainty, while protecting consumers and prioritizing kids’ online safety. House Republicans look forward to working across the aisle to enact a national framework that unleashes the full potential of AI, cements the U.S. as the global leader, and provides important protections for American families.” (Press release)

• Rep. Jay Obernolte (R-CA) posted “I applaud the White House’s continued leadership in advancing a national policy framework for artificial intelligence. As this technology rapidly reshapes our economy, workforce, and national security landscape, it is critical that the United States remains at the forefront of innovation while establishing clear, responsible guardrails for AI. I will continue to work with my colleagues and the Administration to turn these priorities into meaningful, forward-looking policy that strengthens American competitiveness and ensures AI is developed and deployed in a way that benefits all Americans.”

• Rep. Josh Gottheimer (D-NJ) said, “Today, the White House released its AI framework which broadly blocks state AI laws and lacks key consumer protections around AI models and agent safety. While this framework takes steps in the right direction, including child safety and lower energy costs, it is still a half-measure that falls short of what’s necessary for ‘Smart AI’ regulation. AI is too important, — and too vital to our global competitiveness, economy, jobs, and families — to do anything short of a full-measure. Unfortunately, the White House framework fails to address key issues, including strong accountability for AI companies, under the guise of protecting children, communities, and creators. Americans need protection — but this means nothing if we allow the AI industry to be the Wild West. Preemption only makes sense if federal law effectively replaces what states have built with a standard that is truly comprehensive and protects Americans. Simply put, this framework still has a long way to go. Voluntary standards won’t do the trick. In addition to commonsense guardrails, we need serious solutions that address workforce challenges, better incentives for STEM education, enhanced protections against deepfakes, safe and secure AI models and agents, and guarantees that all Americans reap the massive benefits AI offers. We are in a Cold War-era-style race with China, and we must win — both for our economy and our national security. If done the right way, the potential for areas like health care, education, and government efficiency are boundless. But, we have to win it the right way. I’m working with my colleagues to develop a commonsense framework that will create clear and consistent rules of the road which both protect Americans and allow our AI industry to lead the way.” (Press release)

• Rep. Julie Fedorchak (R-ND) said, “There’s no doubt that AI is rapidly transforming how we live and work. The question now is whether America develops the rules of the road and leads the future of this extremely powerful tool, or if we let adversaries like China set the terms,” Fedorchak said. “It cannot be the latter. The White House’s framework strikes the right balance of supporting American competitiveness and long-term innovation while protecting online safety. I’m excited to work with my Energy and Commerce Committee colleagues to move a national framework forward so the U.S. always leads the global AI race.” (Press release)

• Sen. Ed Markey (D-MA) said, “President Trump is continuing to repay Big Tech’s campaign donations by proposing to block states from protecting their communities from AI-related harms,” said Senator Markey. “Congress must not only reject Trump’s offensive proposal but also continue blocking Republicans’ bad faith effort to undermine states. We should pass my States’ Right to Regulate AI Act to put power back into the hands of people, not the Big Tech billionaire boys club cozying up to the White House.” (Press release)

Miscellaneous

• House Committee on Foreign Affairs Ranking Member Gregory Meeks (D-NY) and Senate Banking, Housing, and Urban Affairs Committee Ranking Member Elizabeth Warren (D-MA) released a statement following the Trump Administration’s decision to allow AI chip sales to China, “In December, we called on the Department of Commerce to follow the law and provide us information about the Trump administration’s approval of any sale of advanced AI chips to China. We’ve finally received information about the administration’s first license approval and are now more concerned than ever that the Trump administration is undercutting U.S. national security by approving this sale. Congress must pass bipartisan legislation to prevent China from obtaining our advanced technology in order to protect U.S. economic and national security.” (Press release)

• On her AI Guardrails Act, Sen. Elissa Slotkin (D-MI) said, “It’s the start of the NDAA season, so it’s something that we’re going to be making a feature of our NDAA work, hopefully on a bipartisan basis.” (Punchbowl)

• On the upcoming priorities of the Senate Commerce Committee, Chair Ted Cruz (R-TX) said, “I’m hoping that we move forward at least on kids online safety legislation and potentially additional AI legislation… At this point, we’re looking for what legislation will have the maximum impact and will have the broadest support so that it can pass.” (Punchbowl)

• Sen. Marsha Blackburn (R-TN) posted “Why is Google still getting away with telling lies about conservatives and presenting them as facts? Google needs to take Gemini down until it can ensure this AI chatbot isn’t inherently biased against conservatives.”

• Blackburn also posted “ByteDance’s new AI video app is violating U.S. copyright laws, allowing deepfakes to go viral without consequence. SenPeterWelch and I are demanding the Chinese-owned company shut down this app to protect American innovators.”

• Sen. Elissa Slotkin (D-MI) posted “Congress is behind in putting left-right limits on the use of AI at the Pentagon. My bill ensures a human is involved when deadly autonomous weapons are fired, AI can’t be used to spy on Americans... AI is going to shape the future of America’s national security, and we must win the AI race against China. But to do that, we need action that puts limits on AI in the Department of Defense. This is just common sense.”

• Sen. Ted Budd (R-NC) posted “The U.S. government maintains the world’s largest and most sophisticated data assets generated through taxpayer dollars. The Artificial Intelligence Ready Data Act aims to leverage the potential of that federal data to maintain American leadership in AI development.”

• Rep. Harriet Hageman (R-WY) posted “Congress has a responsibility to ensure emerging technologies do not compromise the accuracy, security, or integrity of our judicial system. I joined SenatorWicker and SenPeterWelch in introducing the Research and Oversight of Artificial Intelligence (AI) in Courts Act. As an attorney for over three decades, I know the importance of precision and accuracy in our legal system.”

• Sen. Mark Warner (D-VA) said of his reelection campaign, “That’s a valid critique of, ‘We need the next generation,’ but no one is more, in the whole political scene in America, is talking more about the potential challenges that artificial intelligence poses, particularly for kids coming right out of college. [We have] 9% recent college graduate unemployment, I think that could go to 30% in the next couple years. I think AI long-term will bring great benefits, but I think it’ll be hugely disruptive in the next five years, and I’ll match my policy chops on kind of emerging technology issues with anybody of any age…. It’s going to hit folks coming out of college… You’re going to have a lot of young people who are saying they did everything right, they still couldn’t get a job. And you’re going to have a lot… of pissed off parents and grandparents who helped support that $200,000 education. I think we can… make these AI companies help us figure that out, and help pay for it.” Warner added, “This sounds a little crazy, but we may need to try and convince folks to no longer major in business administration, because those jobs are first being eliminated [by AI], and become a nurse. We need a lot more healthcare workers.” (The Rotunda)

What I’m Reading This Week

• The White House’s AI Strongarming Frustrates Fellow Republicans, Jonathan Gibson, The Dispatch.

• AI is Coming for Politics, Thomas B. Edsall, The New York Times.

• No Need to Reboot: GenAI Fits the Tax Stack, Michael Plowgian, Alistair Pepper, Prita Subramanian, and Michael Timmerman, Tax Notes.

• Russia’s Push for AI Expansion Threatens to Undermine Crypto Mining, Crypto News.

• The Latest AI Bill’s 5 Biggest Flaws, Kevin T. Frazier and Jennifer Huddleston, CATO Institute.

• ‘Plumbers regularly earn more than lawyers’: Top Entrepreneur Makes a Bold Prediction that AI will Flip the American Dream, Sydney Lake, Fortune.

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

A bipartisan group of senators has introduced legislation to create a commission guiding Congress on AI policy. Nearly the entire Senate Democratic caucus calls for an investigation into the bombing of a school in Iran—raising fresh questions about the Pentagon’s reliance on artificial intelligence. Meanwhile, fallout continues over the Trump administration’s response to Anthropic.

Read more below

Congress

Hearings

This week

• On March 17, the House Financial Services Committee holds a hearing on “Updating America’s Financial Privacy Framework for the 21st Century.”

• On March 17, The Senate Judiciary Committee holds a hearing on “Stealth Stealing: China’s Ongoing Theft of U.S. Innovation.”

• On March 17, the House Homeland Security Cybersecurity and Infrastructure Protection Subcommittee holds a hearing on “DeepSeek and Unitree Robotics: Examining the National Security Risks of PRC Artificial Intelligence, Robotics, and Autonomous Technologies and Building a Secure U.S. Technology Base.”

Upcoming

• On March 26, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on “Innovation at the Speed of Markets: How Regulators Keep Pace with Technology.”

Legislation

• Sens. Mark Warner (D-VA) and Mike Rounds (R-SD) introduced the Economy of the Future Commission Act to establish the Economy of the Future Commission to develop recommendations to help policymakers address the economic and workforce impacts of AI. (Text)

• Reps. GT Thompson (R-PA) and Suzanne Bonamici (D-OR) introduced the Cybersecurity Skills Integration Act to create a pilot program for competitive grants to career and technical education programs that integrate cybersecurity into their curriculum. (Text)

Correspondence

• Senate Democratic Leader Schumer (D-NY) and Sens. Bennet (D-CO), Van Hollen (D-MD), Kaine (D-VA), Warren (D-MA), Schatz (D-HI), Reed (D-RI), Shaheen (D-NH), Hirono (D-HI), Blumenthal (D-CT.), Gillibrand (D-NY), Murray (D-WA), Merkley (D-OR), Heinrich (D-NM), Baldwin (D-WI), Markey (D-MA), Welch (D-VT), Duckworth (D-IL), Alsobrooks (D-MD), Smith (D-MN), Kim (D-NJ), Sanders (I-VT), Gallego (D-AZ), Warnock (D-GA), Durbin (D-IL), Padilla (D-CA), Whitehouse (D-RI), Luján (D-NM), Blunt Rochester (D-DE), Klobuchar (D-MN), Hickenlooper (D-CO), Wyden (D-OR), Peters (D-MI), Kelly (D-AZ), Slotkin (D-MI), Coons (D-DE), Rosen (D-NV), Booker (D-NJ), Ossoff (D-GA), Cortez Mastro (D-NV), Schiff (D-CA), Warner (D-VA), Cantwell (D-WA), Hassan (D-NH), Murphy (D-CT), and King (I-ME) sent a letter to Defense Secretary Pete Hegseth demanding that the Department of Defense carry out an investigation into airstrikes on a school in Minab, Iran, including asking “Have any U.S. military operations in Iran utilized, or will any utilize, artificial intelligence tools, and if so, provide specifics of how they are being used and for what purpose? What human verification and redundancy policies are in place, if any, to evaluate the accuracy and legitimacy of AI-generated targets?” and requesting “a copy of any procedures service members use to verify AI-generated targets and recommend them for execution.” (Letter)

Trump Administration

National Telecommunications and Information Administration (NTIA)

• On March 23, the NTIA will host a hybrid industry listening session on the Public Wireless Supply Chain Innovation Fund to focus on advancing AI-native telecommunications networks through the Innovation Fund. (NTIA)

Noteworthy Quotes and Events

CONGRESS

Miscellaneous

• Rep. Don Beyer (D-VA) told a Punchbowl News conference, “My guess is that at 430 people, maybe 25 are paying attention in a serious ‘what’s happening in terms of AI policy?’ It’s not that they’re not serious people. It’s just they’re not coming from technical backgrounds.” He added, “We can’t deal with climate change, we can’t deal with immigration reform, we can’t deal with Social Security. We’re not good at the debt. Why are we magically going to be able to do a good framework for AI at the federal level?... Until we do something real that really sets up that framework, it’s irresponsible not to let the states try. Plus … when the states do it, we understand what works and what doesn’t work.” (MeriTalk)

• Beyer also said, “It’s got to be Democrats and Republicans sitting down with all the things that we know we have to do, and getting a bill and putting it out there. And if the Republicans are ahead on it, great, I’d love to be a part of it, as long as they don’t put in something like the present preemption.” He added, “I’m a pessimist just about Congress’s ability, in the short run, to get things done, which is why I think we all need to figure out: How do we take an institution full of good people who are trying to do good things across party lines, and get them to work together in a way that actually gets results.” (MeriTalk)

• House Homeland GOP posted “Today, nation-state adversaries and terrorist groups are weaponizing social media networks and emerging technology like AI to radicalize, recruit, and spread propaganda in the homeland. This is evident as tensions with Iran continue. Last year, the House PASSED RepPfluger’s ‘Generative AI Terrorism Risk Assessment Act’ to ensure DHS is staying ahead of these threats as they evolve.”

• Sen. Chris Coons (D-DE) posted “We’re once again seeing AI-generated content spreading misinformation about elections, this time in Hungary. It’s increasingly clear that AI-generated misinformation is influencing elections here in America and around the world and needs to be reined in. Congress needs to get serious about passing smart, strategic rules about AI before it’s too late. I already have a couple of bipartisan bills I’m working on. The Protect Elections from Deceptive AI Act would prohibit deceptive AI-generated content about federal candidates like what we’re seeing in Hungary. The NO FAKES Act would protect all Americans from spreading unauthorized deepfake content using your voice and likeness. And we need to do way more to protect our kids and our privacy from threats posed by artificial intelligence. There’s bipartisan support in the Senate for regulating AI to ensure the country as a whole benefits and Americans are protected against its largest risks. I believe we can get this done. I’m ready to work with anyone to make it happen.”

• Rep. Sara Jacobs (D-CA) posted “We need strict guardrails when the military uses AI, whether it’s in Iran or anywhere else – full stop.”

• Rep. Lloyd Doggett (D-TX) posted “The Trump regime is following Xi Jinping’s playbook by punishing any private citizen or company that disagrees with them. Anthropic CEO Dario Amodei was one of the few AI executives to criticize the Trump regime for sending advanced AI chips to China. Following his warning, Trump issued an executive order targeting ‘woke AI,’ and now Pete Hegseth has designated Anthropic a ‘supply-chain risk.’”

• Doggett also posted “’As Trump Regime insists that it should not be denied the ability to use Artificial Intelligence for domestic mass surveillance and to operate weapons without human control, Anthropic has rightly declined. Now it has been joined by other important forces in opposition to this dangerous Regime overreach.’”

• Rep. Richard Hudson (R-NC) posted “America’s leadership in global AI development ultimately hinges on whether our nation can support the compute-intensive systems that drive innovation across science, medicine, national security, and the broader economy. Silicon carbide is essential to that foundation.”

Floor Remarks

• Sen. Dan Sullivan (R-AK) delivered remarks on the Senate floor, saying, “Because these technologies in which we are in a race with China in terms of their development might determine who controls the entire 21st Century between the United States and China. Fortunately, Mr. President, we’re starting to focus on these. I’m starting to focus on these, and I would say there are three main areas, digital currency, and blockchain technology, artificial intelligence, and biotech. So if you’re on the hill on different committees, and I’m on the Commerce Committee as well as Armed Services, we are doing hearings, we are doing markups, we established commissions. There’s a lot of work, a lot of debate. I would say, Mr. President, a lot of it is bipartisan, which I think is good, to focus on these emerging technologies because in some ways they’re just as important as our military competition with the Chinese Communist Party. And in my view, Mr. President, it is becoming increasingly clear that we are in a race with the Chinese Communist Party on who will control these critical technologies. The economic resilience and financial strength and productivity of our economy, and, yes, the national security of our citizens increasingly depends on who wins these races in these critical emerging technology areas. A couple of things related to that, Mr. President, I just want to touch on. And I’m going to come down to the floor and speak more and more on these and what we need to do. But make no mistake, as I dig into these issues deeper, as we get the briefings from the experts, it has become clear that we should not -- should not underestimate the Chinese Communist Party in these areas. They can compete. They are competing. I think sometimes in the area of technology, we think, well, we’re the United States, we’re the top dog. But we need to take them very seriously. And in some areas, in these technologies, subcomponents of these technologies, say, for example, like robotics, I think you could make a good case that the Chinese are already in the lead. And we have to take that very seriously. Another thing, Mr. President, is that a fundamental component of competing successfully against China in at least two of three of these technologies, blockchain technology and A.I. is that we have to have abundant American energy to power in advance in these technological areas. Again, for the benefit of our own citizens and our own national security, it is critical that we unleash American energy, all forms of American energy. I am an all-of-the-above energy proponent -- oil, gas, coal, renewables, nuclear. We used to talk about the energy transition, Mr. President, but in terms of winning the race on these kind of technologies, we really need to be talking about energy addition, because we’re going to need all forms of American energy, American energy dominance, when it comes to blockchain technologies, crypto, and A.I. so, in these areas, Mr. President, I believe that, for example, in blockchain technology, when developed properly, it can not only help but ensure our economic resilience, our economic competitiveness and, very importantly, Mr. President, as it relates to competing with China, the continued dominance of the U.S. dollar as the world’s reserve currency, which, as I mentioned, Mr. President, is a critical comparative advantage we have over the Chinese and which they are trying to erode, both in terms of their own digital currencies, but in other ways in terms of working with other countries that want to erode the dollar’s preeminence. Related, blockchain technology can make sure the U.S. is more resilience to economic warfare. Again, only if we are the leaders related to China. In these areas, I think we’re off to a pretty good start, Mr. President, by actually passing laws that are beginning to establish the rules of the road for these technologies, like stablecoin, when we recently passed the GENIUS Act. Next up, as we’re working on additional rules for the road, to establish the strength of these technologies based in America, not China, is the market structure legislation that we are working on. As some of you know, the CLARITY Act passed the House. We’re continuing to move that legislation forward here in the Senate, splitting some of it apart with legislation, such as the digital commodity intermediary act, that recently passed out of the Agriculture Committee. This is also bipartisan legislation, Mr. President. And again, it’s a good start, but we have a long way to go, but I think it’s critical to keep in mind one of the most important elements of this is to beat China, for our economic security, for our national security, and that includes, of course, Mr. President, in the area of A.I. and biotech, as I mentioned. Again, the race against China here is critical. Who wins these technological races will almost certainly dominate key elements of the 21st Century. We need to optimize the full promise of A.I. while protecting our citizens against some of the related harms, particularly protecting our children when it comes to this new technology. Smart regulation and legislation and well-thought-out legislative actions from Congress should focus on empowering our people and accelerating societal benefits that result from the use of A.I., like especially, Mr. President, in health care, in education, where I believe the promise of artificial intelligence is immense and transformative in a very positive way, for our country and our citizens. When I talk to the experts, they believe that we are winning the A.I. race with China, but we can’t be complacent at all. As I mentioned, they can compete, and every day we need to keep moving forward and recognizing that this is a critical competition that we cannot let the CCP dominate and control.”

• Sen. Ron Wyden (D-OR) delivered floor remarks, saying, “The Pentagon, the IRS, the FBI, the Secret Service, all of them, Mr. President, have purchased Americans’ location information or web browsing information. The government’s purchase of all this private information ought to be enough, but I want to wrap up by talking about how artificial intelligence could be used on these records. Artificial intelligence tools are designed to comb through enormous data sets, find patterns, and identify behaviors of interest to the government. A few years ago, Americans may have believed that their personal information would be overlooked in an ocean of data. Now, we know A.I. can be looking at everybody. I’ve been warning for nearly a decade that data available for purchase from companies is just as sensitive as information the government collects directly. Creating A.I. profiles of Americans based on that data represents a chilling expansion of mass surveillance that must not be allowed. As my colleagues are aware, the Trump Administration decided to single out the -- one company over the weekend for punishment because the company didn’t want its artificial intelligence tool used for mass surveillance of Americans. Company’s CEO said if the government’s purchase of sensitive data is currently legal, it’s only because the law has not yet caught up with the rapidly growing capabilities of A.I. That in a nutshell is the problem our bipartisan legislation will fix. Update the law to current realities, stop the government from buying data on Americans from sleazy data brokers. It has to be addressed in a Section 702 reauthorization bill, which Congress will actually consider, because if legislators don’t seize this opportunity, technology will just get further and further ahead of the law, and Americans will rightly have little faith that Congress is interested in protecting their privacy.”

What I’m Reading This Week

• Americans Have Little Confidence in Lawmakers Managing AI Policy, Elaine Mallon, The National News Desk.

• White House Preps Executive Order Targeting Anthropic, The Tech Buzz.

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 Trump administration is expected to announce which state-level AI laws it deems “onerous” and will refer to the Justice Department’s AI Litigation Task Force, as directed under the President’s AI Executive Order. The Commerce Department has approved and sent to the White House for review draft regulations that would extend federal oversight to AI chip exports—despite reported opposition from the President himself.

Meanwhile, major technology firms signed a White House Ratepayer Protection Pledge, committing to fully fund power delivery infrastructure upgrades tied to their expanding data center operations.

On Capitol Hill, lawmakers are increasingly sounding the alarm over potential job losses stemming from rapid advances in AI.

Read more below

Congress

Hearings

Last week

• On March 3, the Senate Commerce, Science and Transportation Science, Manufacturing, and Competitiveness Subcommittee held a hearing on “Less Help, More Help: AI That Improves Safety, Productivity, and Care.”

• On March 4, House Education and the Workforce Subcommittee on Higher Education and Workforce Development held the fifth hearing in a series examining artificial intelligence, titled “Building an AI-Ready America: Strengthening Employer-Led Training.”

• On March 5, the Senate Health, Education, Labor and Pensions Committee held a hearing on “Transforming Health Care with Data: Improving Patient Outcomes Through Next-Generation Care.”

Upcoming

• On March 17, the House Financial Services Committee holds a hearing on “Updating America’s Financial Privacy Framework for the 21st Century.”

• On March 26, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on “Innovation at the Speed of Markets: How Regulators Keep Pace with Technology.”

Legislation

• The House Energy and Commerce Committee passed the KIDS Act to establish protections for children and teens online by mandating technology verification to prevent minors from accessing harmful content, requiring platforms to provide robust parental controls, banning direct and ephemeral messaging for users under 13, and restricting market research on minors. The bill includes the Safeguarding Adolescents from Exploitative BOTs (SAFE BOTs) Act covering AI chatbots. (Text)

• Reps. Jay Obernolte (R-CA) and Jennifer McClellan (D-VA) introduced the AI-Ready Networks Act to require the National Telecommunications and Information Administration (NTIA) to issue a forward-looking report on the integration of artificial intelligence into commercial telecommunications networks across the country. (Text)

• Rep. Bonnie Watson Coleman (D-NJ) introduced the Data Center Community Impact Act to authorize a federal study on the environmental, economic, and public health impacts of data centers, with a focus on communities of color and low-income communities. (Text)

• Sens. Tim Sheehy (R-MT) and Lisa Blunt Rochester (D-DE) introduced the AI Fraud Accountability Act to create a new offense under the Communications Act to prohibit falsely posing as a real or imaginary individual through a highly realistic digital impersonation with intent to defraud a person of money or other things of value and direct the FTC to identify foreign countries most associated with digital impersonation fraud and to pursue international cooperation agreements to bolster enforcement against overseas actors. The House companion was introduced by Reps. Vern Buchanan (R-FL) and Darren Soto (D-FL). (Text)

• Senate Commerce, Science and Transportation Committee Ranking Member Maria Cantwell (D-WA) and Sen. Jerry Moran (R-KS) introduced the NSF AI Education Act to expand scholarship and professional development opportunities to study artificial intelligence with support from the National Science Foundation. (Text)

Correspondence

• Sen. Jim Banks (R-IN) sent a letter to Defense Secretary Pete Hegseth requesting the Pentagon’s Artificial Intelligence Futures Steering Committee identify China’s top AI influencers, examine China’s security practices, and investigate sabotage of frontier models. (Axios)

• Sens. Ed Markey (D-MA), Richard Blumenthal (D-CT), Chris Van Hollen (D-MD), and Cory Booker (D-NJ) wrote to Ann Rendahl, President of the National Association of Regulatory Utility Commissioners (NARUC), urging the association’s members to protect residential and small business ratepayers from rate hikes stemming from the rapid artificial intelligence-fueled data center buildout. (Letter)

• Sens. Mark Warner (D-VA), Josh Hawley (R-MO), Jim Banks (R-IN), Maggie Hassan (D-NH), John Hickenlooper (D-CO), Mark Kelly (D-AZ), Tim Kaine (D-VA), Mike Rounds (R-SD), and Todd Young (R-IN) sent letters to the Department of Labor, Bureau of Labor Statistics, and Census Bureau urging them to expand data collection and public reporting on the impact of artificial intelligence on the U.S. workforce. (Letter)

• Sen. Josh Hawley (R-MO) sent a letter to Alphabet Chief Executive Officer Sundar Pichai, informing the company that the Senate Judiciary Subcommittee on Crime and Counterterrorism is opening an investigation into the role that Big Tech platforms play in the crisis of child trafficking and online exploitation. (Letter)

• House Committee on Oversight and Government Reform Chair James Comer (R-KY) sent letters to Booking Holdings, Expedia Group Incorporated, Uber, Lyft, and Instacart documents and information regarding their use of artificial intelligence to conduct surveillance pricing of consumers that artificially increases the prices of goods and services. (Press release)

• Sen. Ron Wyden (D-OR) sent letters to Anthropic, Google, OpenAI and X.AI requesting information about how the companies’ government customers, in the U.S. and overseas, can use their AI products under the terms of their contracts. (Letter)

• Labor Caucus Co-Chairs Reps. Debbie Dingell (D-MI), Steven Horsford (D-NV), Donald Norcross (D-NJ), and Mark Pocan (D-WI) sent a letter to the chairs of the House Democratic Commission on Artificial Intelligence urging them to implement pro worker policy and strong labor standards in AI regulation within the Innovation Economy strategy. (Letter)

Trump Administration

Commerce Department

• The Commerce Department approved and sent to OMB for review draft regulations to give the government authority over AI chip exports abroad. The White House said the draft “does not reflect what President Trump has said on export controls nor does it reflect the direction of the Trump administration on encouraging export of the American AI stack.” OMB has until Thursday to complete interagency review. (Axios)

White House

• The White House released its National Cyber Strategy, saying, “We will outcompete adversaries who sell ‘low cost’ AI and digital technologies that carry embedded censorship, surveillance, and ideological bias. We will partner closely with industry and academia, at the speed and scale commensurate with the threats we face, and in accordance with our values.” In addition to leveraging artificial intelligence, the strategy also includes promoting the adoption of post-quantum cryptography and secure quantum computing. (Report)

• The White House also released the Ratepayer Protection Pledge, in which Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI agreed to build, bring, or buy new generation resources and cover the cost of all power delivery infrastructure upgrades required for their data centers. (Fact sheet)

Noteworthy Quotes and Events

ADMINISTRATION

Securities and Exchange Commission (SEC)

• Chair Paul Atkins delivered remarks at the Financial Stability Oversight Council Artificial Intelligence Innovation Series Roundtable on Strategy and Governance Principles, saying “The SEC’s best historical regulatory approach has hewn to principles-based rules—rooted in materiality. This time-tested approach should inform how a public company today ought to disclose developments concerning AI, just as it guides disclosures about any other development. The standard is a familiar one: whether there is a substantial likelihood that a reasonable shareholder would consider the information important in making an investment decision. Prescriptive mandates are not the answer to every emerging technology. And disclosure “checklists” are no substitute for materiality-based transparency that offers meaningful disclosure under established principles. If the advent of each new technology becomes a pretext for new line items, then disclosure swiftly loses its discipline. In the absence of a limiting principle, a morass of information can do more to obscure than to illuminate. Now, insisting on clarity in disclosure should not suggest an aversion to adoption. We actively encourage market participants to engage with our staff around innovative use cases.” (Remarks)

Commodity Futures Trading Commission (CFTC)

• CFTC Chair Mike Selig said about former CFTC and SEC Chair Gary Gensler, “Someone like that can just run roughshod over entire industries, and that’s exactly what we saw — we saw with crypto, we saw it with prediction markets, we saw with AI, and many other industries where there was just this political motivation to target market participants.” He added, “The other problem with it is that it’s not transparent. I think that you’ve got to put the rules in clear Federal Register typeface so that everybody can see them and it’s fair.” (Washington Examiner)

• On the CFTC Innovation Advisory Committee, Selig said, “For too long, governments have kind of been this top-down ivory tower world of we’re going to tell businesses what to do and what’s best for them. We’re not going to do that anymore. We’re going to work together with industry to understand what they’re doing in the markets, what they’re building as a business, and collaborate on what the best regulatory framework looks like.” (Washington Examiner)

CONGRESS

AI-Related Job Impacts

• Sen. Josh Hawley (R-MO) said on AI-related job losses, “We haven’t done anything. The public will pretty soon demand it.” He added, “I hear from a lot of college graduates now, who are new entrants in the labor market, that they’re having a really tough time finding jobs. I’m really concerned about it. I’m concerned about it for blue collar workers too.” (Politico)

• Sen. Thom Tillis (R-NC) said, “There’s an implication that you may need to slow down AI, because it may be disrupting jobs, but China and our international competitors aren’t. If you stop, China wins.” (Politico)

• Sen. Mark Warner (D-VA) said, “I’m pro-AI. Over the long haul, it’ll bring enormous positives, but for the next five to seven years, the disruptions that can take place, and I think a lot of it is going to take place with recent college grads.” (Politico)

• Sen. Mike Rounds (R-SD) said, “There will be a transition period. There always is. Every time you have a technology change you have an upheaval, but there’s also opportunity.” (Politico)

• Rep. Suzanne Bonamici (D-OR) said, “I’m hearing anxiety about AI; part of it has to do with potential job loss,” said “If the job market changes and is different then we have to prepare people.” (Politico)

• Sen. Mark Kelly (D-AZ) posted “AI is reshaping the workforce faster than we can measure it. I’m pushing for the federal government to modernize how we track AI’s impact on jobs so that we can better support workers and be prepared for what’s to come.”

• Sen. Todd Young (D-IN) posted “We need to know how AI is impacting the U.S. workforce and jobs. Glad to join this effort to support American workers.”

AI and Energy

• At a roundtable discussion with President Donald Trump and Energy Secretary Chris Wright on “lowering energy costs by committing major tech and AI companies to fund their own data center electricity needs instead of shifting costs onto consumers,” Sen. Jon Husted (R-OH) said, “In places like Ohio, this work matters. If America wants economic and national security dominance, we must lead in technology and AI to stay ahead of adversaries like China. But, this innovation requires energy and Ohio families are concerned about the impact on their own bills. I’m grateful to those who signed the Ratepayer Protection Pledge today and to the president for making this happen for working Ohio families. Requiring companies to fund their own power protects working people from higher bills. I was honored to join the president and his administration at the White House as we work to deliver stable, reliable and affordable energy for the future.” (Press release)

• Sen. Ed Markey (D-MA) posted “Electricity rates are spiking as AI data centers pop up across the country. Households and small businesses should not be made to subsidize data centers while they already struggle to get by. Our nation’s public utility commissions set household rates--they can act now.”

Department of Defense vs. Anthropic

• Sen. Thom Tillis (R-NC) said, “They’re telling Anthropic that they should compromise their code of conduct to facilitate whatever it is Hegseth or somebody wants.” (Politico)

• House Committee on Science, Space, and Technology Ranking Member Zoe Lofgren (D-CA) said, “The Trump administration’s bullying tactics towards Anthropic are shocking and senseless. Anthropic is trying to do the right thing and put their own guardrails in place in the absence of legislation. Any freedom loving American can appreciate Anthropic’s attempts to prevent the DOD from using its AI model for mass surveillance of Americans. And it should go without saying that AI technology should not be making potentially lethal decisions without human involvement. I fear what America will become if the DOD is given this unrestricted power.” (Press release)

• Sen. Kirsten Gillibrand (D-NY) said, “The Defense Department’s designation of Anthropic as a supply-chain risk is a dangerous misuse of a tool meant to address adversary-controlled technology. Instead, DOD has turned it against a leading American technology company. This reckless action is shortsighted, self-destructive, and a gift to our adversaries. This goes beyond simply not doing business with a company that won’t meet the administration’s terms. The government openly attacking an American company for refusing to compromise its own safety measures is something we expect from China, not the United States. We cannot credibly compete with China on artificial intelligence while this administration simultaneously takes an axe to American innovation and sells advanced chips to Beijing. I urge the administration to reverse course. We should be nurturing and encouraging American innovation — not threatening it into submission.” (Press release)

• Rep. Lloyd Doggett (D-TX) posted “Seeking modest protections to ensure their technology is used neither for mass surveillance of Americans nor deployment of weaponized drones without humans involved in the decision-making, AI company Anthropic was blacklisted by Hegseth and Trump as a “radical left” company and national security threat. The Trump regime is abusing Anthropic for acting reasonably in accord with American values. This private company is showing far more respect for the American people and our national security than Trump and his incompetent cabinet of Fox News recruits.”

Miscellaneous

• Rep. Darren Soto (D-FL) posted “As AI continues to evolve, it is critical for us to ensure that the technology isn’t being misused to create harm. Proud to introduce the bipartisan AIAccountabilityAct with VernBuchanan to hold bad actors accountable.”

• Rep. Summer Lee (D-PA) posted “ICE is using data from AI-based school surveillance to aid and abet their mass deportation efforts. If Microsoft is going to continue working with ICE, teachers are rightfully concerned about using Microsoft’s AI tools in the classroom while their students are being deported. But Microsoft refuses to answer to them.”

• Sen. Ted Budd (R-NC) posted “AI’s potential in the healthcare industry presents unique opportunities to save and improve lives. We can accelerate breakthroughs, streamline research through automation, and reduce the costs and barriers that slow life-saving trials.”

• Sen. Jim Banks (R-IN) posted “The U.S. needs to win the AI race against China. That’s why I sent a letter to SecWar asking the DoW to examine the state of advanced AI in China and how we can ensure American technology is always in the lead.”

Senate Committee on Armed Services hearing on the American small drone industrial base Q&A

Sen. Mark Kelly (D-AZ)

• Sen. Mark Kelly (D-AZ): “So, General Marks, I want to ask you something I think that is going to define warfare, now for the rest of our lives, for generations, and that’s the role of artificial intelligence in what we’ve seen play out here over the last several days. But certainly, into the future, it’s going to be a new feature of combat operations in many different ways. But specifically, the LUCAS, the low-cost unmanned combat aircraft system, attack system, those drones deployed in Operation Epic Fury have documented autonomous anti-jamming and I believe also some swarming capability. So, my question is about what’s underneath all of that. Are AI systems being used to assist in targeting decisions during this operation?”

  • Major General Steven M. Marks: “So, Senator, thank you for the question. I am familiar with the LUCAS system. At this level, open hearing, I’m not able to go into great depth on what is inside of the LUCAS system, but I would be willing to get on your calendar, on the Committee’s calendar, and provide you a classified briefing.”

• Kelly: “Okay, so my next question is kind of irrelevant there, because I was going to ask about who validated the systems, who safeguarded them, and what human oversight exists at the moment a drone selects or confirms a target. So, let’s do that in a closed session as well. But I also want to just state for the record here that companies like Anthropic and others in the AI industry have published their own safety frameworks of how advanced AI systems should be deployed. But Congress has not yet set any kind of clear statutory framework for how AI can be used in lethal military operations. There’s a DoD directive, directive 3000.09, which requires what is called, and I’m quoting from the directive, “appropriate levels of human judgment over the use of force.” But that language doesn’t necessarily mean a human is involved at the moment a target is selected or engaged. So, before we rapidly scale up production and field more of these systems that have AI incorporated into their capability, we need a clear answer on this. At the moment, a drone identifies and confirms a target, whether or not a human has to make the final decision to strike the target, or can a system execute the engagement autonomously once it’s been activated? These are questions we haven’t yet dealt with here in Congress, and we need to. So, General, I just want to get your thoughts on that, independent of what LUCAS or any other system can do.”

  • Marks: “Thank you, Senator, for the question. Any system, any capability that the department procures has to comply and be compliant with the Law of Armed Conflict. I would say that any commander that deploys these systems, just like any weapon system, it has to comply with the Law of Armed Conflict.”

• Kelly: “I am not sure that the Law of Armed Conflict has dealt with this issue, so LOAC might not be exactly clear, and that’s why I think it’s up to us, Mister Chairman, that we take this issue of humans in the loop seriously and create the framework that DoD will apply to these systems with regards to their autonomous nature and the ability for a system to make a decision on targeting the enemy. Thank you.”

What I’m Reading This Week

• Agents of Chaos, Natalie Shapira et al.

• A Word to the Wise: Don’t Trust A.I. to File Your Taxes, Stuart A. Thompson, The New York Times

• Khan seeks to lure AI giant blacklisted by Trump to London, James Titcomb, The Telegraph.

• What to watch from Trump’s national AI standard, Allison Mollenkamp, Roll Call.

• The Week the AI Scare Turned Real and America Realized Maybe It Isn’t Ready for What’s Coming, Nick Lichtenberg, Fortune.

• How Candidates Are Using Winks and Posts to Seek Crypto and A.I. Cash, Shane Goldmacher, 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

Setting the stage for this week in federal AI policy, Anthropic CEO Dario Amodei publicly rejected Defense Secretary Pete Hegseth’s ultimatum that the company permit its technologies to be used for autonomous weapons and large-scale surveillance—or face invocation of the 1950 Defense Production Act, granting the Pentagon authority to appropriate Anthropic’s products at will. In response, President Trump ordered “EVERY federal agency” to discontinue use of Anthropic systems, despite Claude’s status as the only AI model certified for deployment in the highest-level classified networks. The Department of Defense subsequently labeled Anthropic a supply chain risk.

Meanwhile, Congress continues to scrutinize the energy footprint of data centers amid growing AI infrastructure demands, and the Air Force published a request for information on offering land for lease for large-scale commercial-use data center construction in Alaska.

Read more below

Congress

Hearings

Last week

• On February 24, the House Science, Space and Technology Investigations and Oversight Subcommittee held a hearing on “Powering America’s AI Future: Assessing Policy Options to Increase Data Center Infrastructure.”

• On February 24, the House Education and the Workforce Early Childhood, Elementary, and Secondary Education Subcommittee held a hearing on “Building an AI-Ready America: Teaching in the AI Age.”

This week

• On March 3, the Senate Commerce, Science and Transportation Science, Manufacturing, and Competitiveness Subcommittee holds a hearing on “Less Help, More Help: AI That Improves Safety, Productivity, and Care.”

• On March 4, House Education and the Workforce Subcommittee on Higher Education and Workforce Development holds the fifth hearing in a series examining artificial intelligence, titled “Building an AI-Ready America: Strengthening Employer-Led Training.”

• On March 4, the House Foreign Affairs Committee will markup the Chip Security Act to require the Secretary of Commerce to issue standards with respect to chip security mechanisms for companies to track their AI chips overseas. (Text)

• On March 5, the Senate Health, Education, Labor and Pensions Committee holds a hearing on “Transforming Health Care with Data: Improving Patient Outcomes Through Next-Generation Care.”

Upcoming

• On March 17, the House Financial Services Committee holds a hearing on “Updating America’s Financial Privacy Framework for the 21st Century.”

• On March 26, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on “Innovation at the Speed of Markets: How Regulators Keep Pace with Technology.”

Legislation

• The House passed the Small Business AI Advancement Act, sponsored by Reps. Mike Collins (R-GA) and Haley Stevens (D-MI). (Text)

• Sens. Todd Young (R-IN) and Maria Cantwell (D-WA) reintroduced the Future of AI Innovation Act to direct the Center for AI Standards and Innovation at NIST to work with federal agencies and businesses to develop new voluntary guidelines on transparency standards, performance benchmarks and evaluations for AI systems. It also directs NIST to partner with the National Science Foundation and Energy Department, and the private sector, to create security risk assessment tools and test beds for AI companies to evaluate their systems. (Press release)

• Resident Commissioner Pablo Jose Hernández (D-PR) introduced a bill to establish a grant program to provide awards to National Laboratories and institutions of higher education to develop secure artificial intelligence (AI) cyber-physical testbeds to simulate grid-scale cyberattacks. (Text)

• Resident Commissioner Pablo Jose Hernández (D-PR) introduced a bill to establish an international strategy for AI research and development to improve outdated electrical grids. (Text)

• Reps. Scott Franklin (R-FL) and Sanford Bishop (D-GA) reintroduced the Land Grant Research Prioritization Act, to help give land grant universities dedicated access to existing Department of Agriculture grant funding to enhance artificial intelligence, mechanization and other research. (Text)

• Rep. Valerie Foushee (D-NC), a Co-Chair of the House Democratic Commission on AI and the Innovation Economy, announced she will be introducing the HBCU Artificial Intelligence Research Leadership Act to provide federal funding to Historically Black Colleges and Universities (HBCUs) to establish Artificial Intelligence (AI) Research Institutes. (Press release)

Correspondence

• Senate Armed Services Committee Chair Roger Wicker (R-Miss.) and Ranking Member Jack Reed (D-RI) and Senate Appropriations Subcommittee on Defense Chair Mitch McConnell (R-KY) and Vice Chair Chris Coons (D-DE) sent letters to Defense Secretary Pete Hegseth and Anthropic CEO Dario Amodei expressing “concern over the escalatory direction of negotiations between the Department of Defense and Anthropic” and requesting they “extend the negotiating window and work with Congress to find a solution.” (Politico)

• Rep. George Whitesides (D-CA) sent a letter to Defense Secretary Pete Hegseth expressing concern that compelling a private company to abandon established safety policies on an accelerated timeline could set a dangerous precedent for how AI is deployed in high-stakes national security contexts. (Letter)

Trump Administration

White House

• President Donald Trump announced a six-month phase-out period for the Pentagon and other agencies using Anthropic products. He warned that any resistance by Anthropic will provoke the President to use “the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow.” (Politico)

Department of Defense

• The Department of the Air Force published a request for information on offering land for lease for large-scale commercial-use data center construction in Alaska at Joint Base Elmendorf-Richardson, Eielson Air Force Base, or Clear Space Force Station. (RFI)

Department of Homeland Security (DHS)

• Cybersecurity and Infrastructure Security Agency (CISA) acting director Madhu Gottumukkala was reassigned to a role as DHS’s director of strategic implementation, and Nick Anderson, the executive assistant director for cybersecurity at CISA, will serve as CISA’s new acting director. (ABC News)

Noteworthy Quotes and Events

ADMINISTRATION

White House

• In the 2026 State of the Union, President Trump said, “… many Americans are also concerned that energy demand from AI data centers could unfairly drive up their electric utility bills. Tonight, I’m pleased to announce that I have negotiated the new ratepayer protection pledge. You know what that is? We’re telling the major tech companies that they have the obligation to provide for their own power needs. They can build their own power plants as part of their factory, so that no one’s prices will go up and in many cases, prices of electricity will go down for the community, and very substantially then. This is a unique strategy never used in this country before. We have an old grid. It could never handle the kind of numbers, the amount of electricity that’s needed. So I’m telling them they can build their own plant, they’re going to produce their own electricity. It will ensure the company’s ability to get electricity, while at the same time lowering prices of electricity for you and could be very substantial. For all of these cities and towns, you’re going to see some good things happen over the next number of years.” (AP)

• Trump posted on Truth Social, THE UNITED STATES OF AMERICA WILL NEVER ALLOW A RADICAL LEFT, WOKE COMPANY TO DICTATE HOW OUR GREAT MILITARY FIGHTS AND WINS WARS! That decision belongs to YOUR COMMANDER-IN-CHIEF, and the tremendous leaders I appoint to run our Military. The Leftwing nut jobs at Anthropic have made a DISASTROUS MISTAKE trying to STRONG-ARM the Department of War, and force them to obey their Terms of Service instead of our Constitution. Their selfishness is putting AMERICAN LIVES at risk, our Troops in danger, and our National Security in JEOPARDY. Therefore, I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic’s technology. We don’t need it, we don’t want it, and will not do business with them again! There will be a Six Month phase out period for Agencies like the Department of War who are using Anthropic’s products, at various levels. Anthropic better get their act together, and be helpful during this phase out period, or I will use the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow. WE will decide the fate of our Country — NOT some out-of-control, Radical Left AI company run by people who have no idea what the real World is all about. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! PRESIDENT DONALD J. TRUMP”

• White House AI & Crypto Czar David Sacks posted “True. And guess where those Biden AI staffers went to work as soon as the admin was over? Anthropic.”

Department of Defense

• Secretary Pete Hegseth posted “This week, Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon. Our position has never wavered and will never waver: the Department of War must have full, unrestricted access to Anthropic’s models for every LAWFUL purpose in defense of the Republic. Instead, AnthropicAI and its CEO DarioAmodei, have chosen duplicity. Cloaked in the sanctimonious rhetoric of ‘effective altruism,’ they have attempted to strong-arm the United States military into submission - a cowardly act of corporate virtue-signaling that places Silicon Valley ideology above American lives. The Terms of Service of Anthropic’s defective altruism will never outweigh the safety, the readiness, or the lives of American troops on the battlefield. Their true objective is unmistakable: to seize veto power over the operational decisions of the United States military. That is unacceptable. As President Trump stated on Truth Social, the Commander-in-Chief and the American people alone will determine the destiny of our armed forces, not unelected tech executives. Anthropic’s stance is fundamentally incompatible with American principles. Their relationship with the United States Armed Forces and the Federal Government has therefore been permanently altered. In conjunction with the President’s directive for the Federal Government to cease all use of Anthropic’s technology, I am directing the Department of War to designate Anthropic a Supply-Chain Risk to National Security. Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic. Anthropic will continue to provide the Department of War its services for a period of no more than six months to allow for a seamless transition to a better and more patriotic service. America’s warfighters will never be held hostage by the ideological whims of Big Tech. This decision is final.”

Department of Energy (DOE)

• On the development of a minimum viable product within Genesis Mission, DOE’s under secretary for science and director of the Genesis Mission, Darío Gil, said, “We’re going to show quite a lot of results this year. We’re going to show results on our progress of building AI supercomputers … the software and the agentic framework.” He added, “We know how capable AI-driven cyberattacks will be, and that’s why from day one in everything that we do, we have a red-team, blue-team element to it. In the demos that the teams were showing me [last Thursday], it was already a built-in thing.” In addition, he said, “We’re going to use the most powerful AI network to attack ourselves, and we’re going to use the most powerful AI to defend ourselves.” (AIScoop)

Department of the Interior

• Interior Secretary Doug Burgum said, “A moratorium on data centers would — would be like, we might as well wave the surrender flag to China right now. I mean, it is, again — that’d be complete capitulation… These data centers, again, they’re not a data center in the traditional sense, these are a place where you manufacture intelligence. We have to manufacture intelligence.” (The Hill)

Federal Reserve

• Governor Christopher Waller delivered remarks on “Operationalizing AI at the Federal Reserve” at the Federal Reserve Bank of Boston 2026 Technology-Enabled Disruption Conference: Shaping the Future of Finance and Payments, saying, “As we see technologies like tokenization and agentic AI coming into view, it’s worth remembering that this isn’t the first time our industry has navigated shifts like this. When ATMs were first introduced, they didn’t eliminate bank tellers. Instead, they changed how banking worked. Routine transactions became cheaper, faster, and more accessible, while human effort shifted toward higher-value activities. The real impact wasn’t automation alone—it was how institutions reorganized around technology. AI is similar. The biggest gains won’t come from simply adding AI to existing processes. They’ll come from rethinking workflows, roles, and systems to take advantage of what this technology makes possible. What we don’t know—and can’t know—is exactly when these technologies will hit their full inflection point. We won’t get a clear signal when AI moves from rapid progress to truly systemic impact. But waiting for perfect clarity isn’t a strategy. If we want to be ready when that moment comes, the work has to start now.” (Remarks)

• Governor Lisa Cook delivered opening remarks for the “AI and Productivity across the Economy” panel at “The Great Realignment: Navigating AI, Demographic, and Geoeconomic Shifts,” 42nd Annual NABE Economic Policy Conference, saying, “To be sure, the AI transition I am contemplating could have profound implications for monetary policy. It is too early to observe the exact contours, but I am carefully studying several aspects of this transition. Allow me to briefly raise two issues for consideration. First, if AI continues to raise productivity, economic growth could remain strong, even as churn in the labor market leads to an increase in unemployment…. Second, I am thinking about how AI might affect the neutral rate of interest in the short run and over time. To recall, the neutral rate is a long-run concept that articulates the equilibrium level of interest rates that is noninflationary and consistent with maximum employment… With investment contributing to strong aggregate demand, it is possible that the current neutral rate is higher than before the pandemic. This could reverse when the AI productivity gains are more fully realized or if the labor market transition leads to a rise in income inequality, such that well-off consumers receive a larger share of income, which could lower the neutral rate, all else equal.” (Remarks)

CONGRESS

Department of Defense vs. Anthropic

• Sens. Elizabeth Warren (D-Mass.) and Andy Kim (D-NJ) released a statement on reports that Secretary of Defense Pete Hegseth told Anthropic’s CEO Dario Amodei that the Pentagon would use the Defense Production Act (DPA) to against the company if it does not agree to Hegseth’s terms, saying, “Congress passed the DPA to mobilize the country’s economic and industrial resources to respond to emergencies and protect our national security, not to give Donald Trump and Pete Hegseth tools to extort American companies that refuse to help the Pentagon to surveil Americans or build killer robots. If Secretary Hegseth weaponizes the DPA against American companies, he will shatter the bipartisan consensus in support of a strong DPA – weakening our hand in competition with China and our ability to ensure American competitiveness.” (Press release)

• Sen. Chris Coons (D-DE) posted “Demanding complete obedience from a private company so the Pentagon has the option to surveil Americans and develop self-firing weapons is chilling and totally inappropriate.”

• Sen. Mark Warner (D-VA) issued a statement, saying, “I’m deeply disturbed by reports that the Department of Defense is working to bully a leading U.S. company, which has already provided enormous utility to the intelligence community and warfighter. Most Americans oppose unsupervised autonomous weapon systems and AI-facilitated surveillance. Unfortunately, this is further indication that the Department of Defense seeks to completely ignore AI governance – something the Administration’s own Office of Management and Budget and Office of Science and Technology Policy have described as fundamental enablers of effective AI usage – and further underscores the need for Congress to enact strong, binding AI governance mechanisms for national security contexts.” (Press release)

• Warner also said, “As one of Congress’ most vocal proponents for the modernization of IC and DoD missions with transformative technology, I have been actively working for years to ensure that the U.S has the compute, models, and talent to seize opportunities provided by AI. At the same time, the intelligence committees have consistently sought – on a bipartisan basis, and across administrations – to ensure that AI usage in the national security context meets rigorous, consistent, and transparent standards for AI governance, particularly in contexts in which AI usage has a significant potential impact on Americans’ core rights or results in the loss of human life. The president’s directive to halt the use of a leading American AI company across the federal government, combined with inflammatory rhetoric attacking that company, raises serious concerns about whether national security decisions are being driven by careful analysis or political considerations. President Trump and Secretary Hegseth’s efforts to intimidate and disparage a leading American company – potentially as the pretext to steer contracts to a preferred vendor whose model a number of federal agencies have already identified as a reliability, safety, and security threat – pose an enormous risk to U.S. defense readiness and the willingness of the U.S. private sector and academia to work with the IC and DoD, consistent with their own values and legal ethics. Indeed, Secretary Hegseth’s loud insistence on the sufficiency of an ‘all lawful purposes’ standard provides cold comfort against the backdrop of Pentagon leadership that has routinely sidelined career military attorneys and challenged longstanding norms and rules regarding lethal force.” (Press release)

• Warner posted “Trump & Hegseth’s bullying of a company to deploy AI-driven weapons without safeguards should scare the hell out of all of us. This is about more than Anthropic – it’s about the responsible deployment of AI everywhere.”

• Warner also posted “Why is Pete Hegseth trying to bully AI companies into giving him maximal control over powerful, potentially autonomous weapons? Does anyone really want the Signalgate King having this sort of power?”

• Warner also posted “Most Americans oppose unsupervised autonomous weapons systems… so why the hell is the Department of Defense bullying an AI company into deploying them?”

• Sen. Kirsten Gillibrand (D-NY) said, “Secretary Hegseth’s attack on AI safety procedures contradicts common sense and undermines our national security. It also raises serious questions about why the DOD seeks to deploy autonomous weapons with an AI model neither designed nor ready to be used for such a purpose, as well to conduct mass domestic surveillance of American citizens. The Department must cease these efforts and provide the American people and Congress with full transparency on its plans to surveil Americans and develop fully autonomous weapons. Lawyers at the Justice Department and Department of Defense have been willing to use secret interpretations of law to put us into armed conflict abroad and the door should not be left open for them to do the same here through secret and novel interpretations of ‘any lawful purpose. Punishing AI safety destroys American leadership and will have a chilling effect on responsible AI development around the world. This is a gift to our adversaries and a strike against American innovation. America should be leading the world in developing international norms surrounding these technologies, ensuring outcomes in our national interest. Instead, Pete Hegseth is consigning us to runner-up status. Removing guardrails doesn’t produce efficiency; it guarantees a future of catastrophic harm. We must have clear AI safety procedures across military and civilian life – with humans in control. The health of our democracy and America’s leadership around the world depend on it not just in the military, but across health care, law enforcement, financial systems, and everything else this technology will touch. This event only underscores that Congress’ continued lack of action on AI legislation is creating a future of devastating consequences. We must create clear rules of the road to promote safety, protect civil rights, and ensure America’s AI innovation leads the world.” (Press release)

• Sen. Mark Kelly (D-AZ) posted “We need the best AI systems to stay ahead of our adversaries and keep Americans safe. That also means strong safeguards. If Hegseth kicks out the most capable provider because they want responsible guardrails, that makes us less safe and raises serious questions about how this administration plans to use AI. Congress must act and set clear rules for AI use to protect Americans and make sure we continue to have the most advanced fighting force in the world.”

• Sen. Raphael Warnock (D-GA) posted “This is out of control. Pete Hegseth wants to use AI to fire weapons without human input. And he’s willing to blackmail a private company in order to do it. He is a threat to our safety and must be fired immediately.”

• Sen. Ed Markey (D-MA) posted “DOD is still coercing Anthropic to allow its AI model to be used for mass surveillance and autonomous warfare. Imagine what they have planned. This can’t happen.”

• Sen. Elissa Slotkin (D-MI) posted “Americans don’t want to be surveilled by their government, with AI or otherwise.”

• Slotkin also posted “The average person does not think we should allow AI systems to get into war and kill people without a human being overseeing that. And I certainly don’t think any American wants AI-assisted mass surveillance on the American people.”

• Rep. Valerie Foushee (D-NC) said, “Reports that Anthropic is stepping back from key safety commitments in the face of pressure from Secretary Hegseth and the Department of War are deeply troubling. AI companies have a responsibility to stand by the safeguards they publicly embraced and should not weaken them in response to political pressure. Doing the right thing should not depend on who is in the White House. Congress is watching. I firmly object to any effort by the Administration to strong-arm AI companies into enabling mass surveillance or developing weapons that operate without meaningful human control. These uses threaten civil liberties and human rights at home and around the world, and they raise profound moral and constitutional concerns. Targeting one of America’s leading AI companies because it refuses to abandon basic safety principles would also be strategically reckless and only strengthens China’s hand. I urge Secretary Hegseth and the Department to withdraw any demands that would undermine established AI safety guardrails. The United States must lead in responsible AI, not in abandoning safeguards or automating life-and-death decisions.” (Press release)

• House Foreign Affairs Committee Dems posted, “The Department of Defense is coercing Anthropic simply because it is standing up for American values. We need to harness American AI innovation, not bully the companies doing it if we are going to win the AI race against China.”

• Rep. Doris Matsui (D-CA) posted, “First it was universities and social media companies. Then it was the press. Now AI companies. Trump has made it clear: no American institution or company is safe from government retaliation if it doesn’t fall in line. Anthropic said no to mass surveillance and autonomous weapons. Look what happened.”

• Rep. Rob Menendez (D-NJ) posted “Important that Anthropic rejected Hegseth’s pressure to allow the DOD to use their technology to enable mass surveillance or the development of weapons without human oversight. Removing necessary AI safeguards for military weapons would shake the conscience of our country. We cannot - and will not - allow it to happen.”

• Rep. Sara Jacobs (D-CA) posted “The Pentagon’s move to bring Grok into its classified systems, while pressuring Anthropic to drop key safeguards, is deeply alarming. Undermining AI safety and civil liberties protections could cause large-scale harm. We can’t let this happen.”

• Rep. Betty McCollum (D-MN) posted “The use of Anthropic’s artificial intelligence technology by the Department of Defense deserves tough scrutiny from Congress. We must understand exactly how DoD intends to use this technology and should hold hearings on the use of artificial intelligence in the military. Congress must ensure that the private data of Americans is protected and that our citizens are free from warrantless government surveillance.”

Data Center Energy Consumption

• In his opening remarks at the House Science, Space, and Technology Committee hearing on “Powering America’s AI Future: Assessing Policy Options to Increase Data Center Infrastructure,” Investigations and Oversight Subcommittee Chair Rich McCormick (R-PA) said, “China is building data center and power infrastructure at considerable speed through centralized planning. Its data center electricity consumption is projected to grow dramatically over the next five years… We should also consider how this conversation extends beyond major metropolitan regions. Much of rural Georgia—and rural America—still operates on cooperative grid infrastructure originally built under mid-20th century electrification policy. That system was not designed for compute-intensive infrastructure. If AI integration expands into agriculture, logistics, and public services, rural grid capacity could become a binding constraint. So what needs to happen? We must evaluate whether a permitting framework largely designed in the 1970s is suited to infrastructure that is now central to national security and economic competitiveness in 2026. That includes reviewing litigation timelines and considering whether AI-related infrastructure warrants differentiated treatment. I am not advocating the elimination of environmental review. But we should ask whether the current process is meeting its intended goals efficiently—or simply creating unnecessary delay. I am not suggesting we adopt their system. But we should acknowledge that our competitors are not operating under the same constraints.” (Press release)

• Sen. Bernie Sanders (I-VT) released a statement following an announcement of a data center moratorium in Denver, CO, “Let’s be clear. AI will likely have a catastrophic impact on the lives of working-class Americans, eliminating tens of millions of blue- and white-collar jobs in every sector of our economy. Further, given the extraordinary speed at which AI is progressing, a number of very knowledgeable AI experts fear that this revolutionary technology could soon become smarter than humans and escape human control — with potentially cataclysmic outcomes. Bottom line: We cannot sit back and allow a handful of billionaire Big Tech oligarchs to make decisions that will reshape our economy, our democracy and the future of humanity. We need serious public debate and democratic oversight over this enormously consequential issue. The time for action is now. We need a federal moratorium on AI data centers.” (Press release)

• Sanders also said, “We need to slow down the development of [artificial intelligence] to give democracy a chance to catch up. A moratorium will give us time to figure out how to make sure AI does not harm our environment or jack up the cost of electricity.” (Politico)

• Senator Ted Budd (R-NC) delivered remarks at The Washington Post Live event “Building America: Powering the AI Age”, saying, “It goes back to a conversation I had with Sam Altman… [where he] made the point that an electron, is an electron, is an electron. And if we are so constrained and protective and don’t build energy, it not only holds back AI, but also holds back manufacturing. It holds back technology. It holds back all sorts of production. I think that’s our main constraint right now when it comes to moving forward. So, if we have more energy, I believe we’ll be safer, more secure, and more resilient.” (Press release)

• Sen. Ted Budd (R-NC) posted “If we don’t build energy, it not only holds back AI, but it also holds back manufacturing, technology, all sorts of production, airports, hospitals, and everyday practices. More energy means we’ll be safer, secure, and more resilient.”

• On his bill with Sen. Richard Blumenthal (D-CT), the Guaranteeing Rate Insulation from Data Centers (GRID) Act, Sen. Josh Hawley (R-MO) said, “Voters are saying ‘We want some protections. We do not want to pay more in energy.’ I think that if we don’t get that message, I think that voters will make sure we get it. It’ll probably be unpleasant.” (Politico)

• Hawley also said, “My bill is based on what the president talked about. It implements it, makes it permanent, makes it guaranteed, and it has bipartisan support. So I think we should do that.” (Politico)

• Blumenthal said, “The administration has shown that it vacillates and loses enthusiasm on so many topics, especially when Big Tech is the adversary or is adversarial. So I think our bill is absolutely necessary, and it meets a really strongly felt need on the part of consumers… Let me be blunt — Big Tech has a lot of sway around here. And I expect they may say they’re for the idea, say they support the idea, but in fact work behind the scenes against it.” (Politico)

• On his Power for the People Act, Sen. Chris Van Hollen (D-MD) said, “We will continue to open it up and reach out to Republicans. All of them say they sort of support the basic idea behind the bill, but we need them to join.” (Politico)

• Energy and Natural Resources Committee Ranking Member Martin Heinrich (D-NM) said, “I would definitely welcome [legislative action], and this is one of those areas where [Chair] Mike Lee [R-Utah] and I have been somewhat aligned in the communications that we’ve signed together to say, ‘Do not do this development on the backs of ratepayers,’” He added, “I think that there are a lot of developers and hyperscalers that are really botching this out of the gate.” (Politico)

• On his Decentralized Access to Technology Alternatives (DATA) Act, Rep. Nick Begich (R-AK) said, “America leads when we provide the private sector the space it needs to move at the speed of innovation. The Data Act makes sure that leadership continues at what may be the most important technological moment in mankind’s history.” (Politico)

• Rep. Adriano Espaillat (D-NY) posted “New Yorkers are feeling the squeeze from skyrocketing energy bills, which can be attributed to corporate greed, data centers, AI, and Trump’s insane policies on tariffs and renewable energy projects. We cannot rely on the market forces or existing authorities to rectify this problem — and everyday Americans need relief now. I wrote a letter to SpeakerJohnson urging him to use the power of his position and the GOP majority to design and advance frameworks for the federal government to regulate — and freeze — the ballooning utility rates, which are straining families, individuals, and small businesses alike.”

• Rep. Bob Onder (R-MO) posted “Missouri led the nation by making sure massive AI data centers pay their fair share, so families aren’t stuck with higher energy bills. Hardworking Americans should never subsidize the cost of powering billion-dollar facilities. HouseGOP stands ready to work alongside POTUS to take this approach nationwide, protecting ratepayers, strengthening our grid, and continuing to put American families first.”

• Rep. Rich McCormick (R-GA) posted “As President Trump announces his rate payer protection pledge, I am leading HouseGOP to help build data centers sustainability and quickly, while keeping our energy prices stable.”

Miscellaneous

• On the GAIN AI Act, Sen. Jim Banks (R-IN) said, “Chairman Scott is having productive conversations with a lot of us. I’m optimistic there will be a markup in the near future on export controls, so we’ll see.” (Punchbowl)

• On the SAFE Chips Act, Sen. Pete Ricketts (R-NE) said, “One of the things I need to do is get a briefing with some of my colleagues in a secure setting with the CIA.” (Punchbowl)

• On the markup of the Chip Security Act, Rep. Bill Huizenga (R-MI) said, “We’re all trying to build towards the certainty of making sure that we know where those chips are.” (Punchbowl)

• Senate Majority Leader John Thune (R-SD) gave remarks at a press conference with Senate Republican leadership, saying, “I think technology and innovation is also something, artificial intelligence, I think there’s a path forward perhaps on some legislation to deal with that. We just heard from some folks who are experts in that field. But there’s just a lot of work to do.” (Press release)

• In his opening statement, at the hearing on “Building an AI-Ready America: Teaching in the AI Age”, Early Childhood, Elementary, and Secondary Education Subcommittee Chair Kevin Kiley (R-CA) said, “Students aren’t just using these tools to get homework done faster; excessive or irresponsible use of AI as a crutch threatens to replace critical thinking, especially when used outside of teacher supervision. These problems have obvious consequences as educators must fundamentally rethink how they design assessments, assign homework, and ensure academic integrity. Unfortunately, teachers report receiving insufficient guidance on how to handle these challenges. For example, according to a recent RAND survey, only 34 percent of teachers reported their school or district has policies on academic integrity and AI.” (Press release)

• In her opening statement at the House Committee on Science, Space, and Technology Investigations and Oversight Subcommittee hearing on “Powering America’s AI Future: Assessing Policy Options to Increase Data Center Infrastructure,” Ranking Member Zoe Lofgren (D-CA) said, “Data center operators and their supporters should appreciate that their social license to operate is a valuable and fragile thing. It is in their own self-interest to be as transparent as possible about data center impacts so that the country can make reasoned judgments about how to sustainably mitigate them.” (Press release)

• House Foreign Affairs Committee Chair Brian Mast (R-FL) told CNBC regarding NVIDIA chip sales to China, “The joke here is, Jensen wants us to trust the CCP. Anybody watching this should laugh.” He added, “We are in an AI arms race, and it’s important that we know where the AI arms dealers are selling.” (CNBC)

• On Congressional oversight of semiconductor deals, Mast said, “when it blends into the world of now, it’s real war, real weapon systems, real casualties at the highest level of all militaries, yeah, we’re going to have a say.” (CNBC)

• On the White House’s AI & Crypto Czar David Sacks retweeting posts against Mast’s bill, the AI Overwatch Act, Mast said, “What he was promoting was literally mercenary influencers, about a dozen of them, telling literal lies.” (CNBC)

• On job displacement, Senator Ted Budd (R-NC) said, “I don’t worry about being replaced because humanity is going to be collaborating with AI. Let’s remember that AI exists inside of human ingenuity.” (Press release)

• Rep. Valerie Foushee (D-NC) posted “Ensuring equity in AI also means ensuring equity in education—communities of color cannot be left behind. I’m introducing the HBCU AI Research Leadership Act to ensure that students at our nation’s HBCUs can also have the opportunity to engage in AI education and research.”

• Sen. Ron Wyden (D-OR) posted “The Trump administration wants you to stop talking about prior authorization so they can let insurance companies use AI to delay and deny your claims while you get sicker and sicker”

• Rep. Greg Casar (D-TX) posted “We must ban surveillance pricing now before even more companies start using AI to charge you more based on your personal data. I’ve introduced the first federal bill to ban it, and I’m glad to see a proposal in New Jersey to do the same.”

• Sen. Todd Young (R-IN) posted “We need to make sure America, not China, leads in AI.”

• House Foreign Affairs Committee Majority posted “More evidence that without US technology, China won’t win the AI Arms Race. Beijing is living off stolen tech and borrowed time.”

• Sen. John Fetterman (D-PA) posted “SecretaryBurgum is correct. I refuse to help hand the lead in AI to China. The AI chassis can either come from China or the USA. That’s an easy choice.”

• Sen. Todd Young (R-IN) posted “We need to boost U.S. innovation in AI and ensure it is developed in a manner that reflects American values and supports our country and people. The Future of AI Innovation Act will help secure American leadership in the global race for AI dominance.”

• House Science Committee posted “The U.S. AI regulatory landscape is rapidly evolving. To ensure America leads in AI innovation and development, we need a clear understanding of how current regulations impact growth and competitiveness. That’s why Chairman RepBrianBabin and Research and Technology Subcommittee Chairman JayObernolte sent a letter to USGAO requesting a comprehensive review of existing AI regulations.”

• Rep. Suzanne Bonamici (D-OR) posted “AI is increasingly present in the classroom, but educators and students are often left to navigate its risks and opportunities without support. While Trump dismantles the Department of Education, House Democrats are dedicated to providing every student and teacher with access to the resources and knowledge they need to succeed in the classrooms and careers of tomorrow.”

• Sen. Ted Budd (R-NC) posted “Utilizing AI has great potential to maximize skills, improve safety, and enhance many experiences Americans encounter daily. When developed and deployed responsibly, these technologies can unlock solutions and improve career outcomes in sectors across our economy.”

• House Committee on Education and the Workforce posted “The President is right—AI could revolutionize schools. We stand with educators who want to use AI safely and responsibly in their classrooms.”

• Sen. Mike Rounds (R-SD) posted “America can’t afford to wait on AI development. President Trump recognizes the importance of developing AI here at home and harnessing its power for good.”

• Sen. Tom Cotton (R-AR) posted “I appreciate HouseForeignGOP RepHuizenga’s continued support for the bipartisan Chip Security Act. Communist China wants to surpass us as the world leader in AI, and will cheat and steal to get ahead. Our most advanced technology can’t fall into the wrong hands.”

• Rep. Brad Sherman (D-CA) posted “Whoever leads in AI may lead this century — but what if AI itself is in control? We’re spending trillions to make AI more powerful and almost nothing to ensure it remains controllable. I’m pushing legislation to change that.”

• House Foreign Affairs Committee Majority posted “China’s AI chips can’t compete with America’s, so Beijing resorts to theft instead. We support the Trump Administration’s efforts to crack down on these smuggling networks.”

• House Foreign Affairs Committee Democrats posted “DeepSeek is circumventing U.S. export controls to steal our most advanced AI technology, yet the Trump administration won’t commit to denying H200 licenses for DeepSeek. Make it make sense.”

• Rep. Warren Davidson (R-OH) posted “This is why the industry wants preemptive immunity. Privacy is the base layer for ethical AI. While massive data theft has already occurred, passing my It’s Your Data Act would recognize everyone’s property right to their own data. Nevertheless, enforcement would likely never occur.”

• Rep. Mark DeSaulnier (D-CA) posted “As our civil rights are under relentless attack from the Trump Administration, I am prouder than ever to receive a 100% scorecard from ACLU. Whether it be standing up for free speech or regulating AI to protect privacy, I’m committed to protecting your rights and freedoms in Congress.”

What I’m Reading This Week

• Artificial Intelligence in Election Campaigns: Perceptions, Penalties, and Implications, Andreas Jungherr, Adrian Rauchfleisch, and Alexander Wuttke, Political Communication.

• Statement from Dario Amodei on our discussions with the Department of War, Anthropic.

• AI and the Data Center Backlash, The Wall Street Journal.

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

This week in AI federal policy, President Trump will deliver the annual State of the Union address to Congress, where U.S. leadership in emerging technology is expected to take center stage. Shaping the week ahead, the White House unveiled a series of international initiatives advancing its AI sovereignty agenda, signaling a bid for global dominance in artificial intelligence.

NIST opened a public comment period on agentic AI, while Treasury released new AI resource guides for the financial sector.

Many of these policy moves were previewed during the India AI Impact Summit, where the White House emphasized its opposition to global AI governance frameworks.

Meanwhile, as the midterm elections draw closer, an increasing number of Congressional Democrats are weaving AI regulation into their campaign platforms.

Read more below

Congress

Hearings

This week

• On February 24, the House Science, Space and Technology Investigations and Oversight Subcommittee holds a hearing on “Powering America’s AI Future: Assessing Policy Options to Increase Data Center Infrastructure.”

• On February 24, the House Education and the Workforce Early Childhood, Elementary, and Secondary Education Subcommittee holds a hearing on “Building an AI-Ready America: Teaching in the AI Age.”

Upcoming

• On March 17, the House Financial Services Committee holds a hearing on “Updating America’s Financial Privacy Framework for the 21st Century.”

• On March 26, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on “Innovation at the Speed of Markets: How Regulators Keep Pace with Technology.”

Legislation

• Reps. Mike Lawler (R-NY) and Josh Gottheimer (D-NJ) introduced the AI Workforce Training Act to safeguard American workers and businesses from being displaced by artificial intelligence (AI) and to ensure they are equipped with the skills needed to work effectively with these emerging technologies. (Text)

• Reps. Don Davis (D-NC) and Ronny Jackson (R-TX) introduced the United States-Israel Framework for Upgraded Technologies, Unified Research, and Enhanced Security (FUTURES) Act to establish a United States–Israel Defense Technology Cooperation Initiative to accelerate the development and deployment of next-generation defense technologies, ensuring that investments in collaborative technologies deliver an operational edge to America’s servicemembers. Sens. Ted Budd (R-NC) and Kirsten Gillibrand (D-NY) introduced companion legislation in the Senate. (Text)

Correspondence

• House Science, Space, and Technology Committee Chair Brian Babin (R-TX) and Research and Technology Subcommittee Chair Jay Obernolte (R-CA) sent a letter to Comptroller General Gene Dodaro requesting the Government Accountability Office conduct a “comprehensive review” of current federal and state laws regulating artificial intelligence to inform future legislative efforts. (Letter)

• Sens. Richard Blumenthal (D-CT) and Marsha Blackburn (R-TN) sent a letter to the Chief Executive Officer of Miko, Inc., launching an investigation into why the company exposed sensitive data involving children through an unsecured, publicly accessible dataset. They also sent letters to FoloToy and Curio Interactive, Inc. following up on their previous letter asking what safeguards these companies have in place to protect kids from sexually explicit, violent, or otherwise inappropriate content. (Press release)

• Reps. Gabe Evans (R-CO) and Nick Langworthy (R-NY) sent a letter to Secretary of Commerce Howard Lutnick highlight concerns with Colorado’s SB 205 and New York’s RAISE Act, warning that a growing patchwork of conflicting state AI laws risks undermining U.S. leadership. (Letter)

Publications, Meetings, and Events

• Rep. Lori Trahan (D-MA) released a staff report entitled “Privacy, Trust, and Effective Government: A Bipartisan Blueprint for Modernizing the Privacy Act” outlining a bipartisan framework to modernize the Privacy Act of 1974. (Report)

• Rep. Rich McCormick (R-GA) published an op-ed in the Washington Times entitled “America’s AI Future Runs on Energy, Not Bureaucracy,” saying, “America risks falling behind not because we lack talent or innovation but because red tape is painfully slowing the process and, too often, stopping projects before they ever break ground. While we struggle with lengthy approvals and uncertainty, China is moving fast. It has rapidly expanded power generation and data center capacity to support industries that require lots of computing power and resources. Experts estimate that China accounted for more than half of global electricity demand growth in 2024 alone. That ability to build quickly gives China a strategic advantage we cannot afford to ignore.” (Op-ed)

Trump Administration

White House

• At the India AI Impact Summit 2026, White House Office of Science and Technology Policy Director Michael Kratsios announced several U.S. initiatives to accelerate global adoption of the American AI stack through the American AI Exports Program:

  • American AI Exports Program’s National Champions Initiative within the Commerce Department to match partner nations’ leading AI companies into customized American AI Export stacks.

  • U.S. Tech Corps within the Peace Corps to provide volunteer technical talent with import partners to provide support in deploying AI applications in public services.

  • International financing funds from the Treasury Department and implemented at the World Bank and programs launched at the Export-Import Bank, the U.S. International Development Finance Corporation, the State Department, and the Small Business Administration.

  • NIST/CAISI’s AI Agent Standards Initiative to facilitate the development of interoperable and secure standards for agentic AI. (Press release)

Treasury Department

• Treasury released two new resources to guide AI use in the financial sector, a shared Artificial Intelligence Lexicon and the Financial Services AI Risk Management Framework (FS AI RMF), to provide common terminology and risk management practices for AI, developed through the Financial and Banking Information Infrastructure Committee and the Financial Services Sector Coordinating Council’s Artificial Intelligence Executive Oversight Group (AIEOG). (Publications)

National Institute of Standards and Technology (NIST)

• The Center for AI Standards and Innovation (CAISI) published an RFI seeking insights regarding the secure development and deployment of AI agent systems. They specifically request information on unique security threats affecting AI agent systems, and how these threats may change over time; methods for improving the security of AI agent systems in development and deployment; promise of and possible gaps in existing cybersecurity approaches when applied to AI agent systems; methods for measuring the security of AI agent systems and approaches to anticipating risks during development; and interventions in deployment environments to address security risks affecting AI agent systems, including methods to constrain and monitor the extent of agent access in the deployment environment. (Request for Information)

Department of Transportation

• On March 10, the National Highway Traffic Safety Administration holds a meeting to provide updates and insights into ongoing vehicle automation activities across NHTSA.

Noteworthy Quotes and Events

ADMINISTRATION

White House

• At the India AI Impact Summit 2026, White House Office of Science and Technology Policy Director Michael Kratsios said, “As the Trump Administration has now said many times: We totally reject global governance of AI. AI adoption cannot lead to a brighter future if it is subject to bureaucracies and centralized control.” (France24)

• Kratsios also delivered remarks saying, “Real AI sovereignty means owning and using best-in-class technology for the benefit of your people, and charting your national destiny in the midst of global transformations. It does not mean waiting to participate in an AI-enabled global market until you have tried and failed to build full self-sufficiency. Complete technological self-containment is unrealistic for any country, because the AI stack is incredibly complex. But strategic autonomy alongside rapid AI adoption is achievable, and it is a necessity for independent nations. America wants to help.” (Remarks)

• At the India AI Impact Summit, White House’s senior policy adviser on artificial intelligence Sriram Krishnan said, “I do think the atmosphere in the EU needs to change and be more focused on innovation, less focused on governance and less focused on doomerism.” He added, “The EU AI Act, which I have ranted about before this job, during this job, maybe after this job ... it’s not really conducive to an entrepreneur who wants to build basic technology.” (Politico)

Treasury Department

• Treasury Secretary Scott Bessent delivered remarks at the Economic Club of Dallas, saying, “The global economy is undergoing a period of rapid transformation with breakthrough advances in artificial intelligence, quantum computing, and advanced manufacturing. The countries that adopt and deploy these technologies most effectively will shape the next era of growth, and the world is counting on America to lead as we always have. For 250 years, American innovation has been our decisive advantage. We are in an existential battle to maintain and accelerate technological dominance. The production and development of AI infrastructure will be crucial to both economic growth and national security in this next industrial revolution. Beyond production, leadership in AI adoption is another crucial component of economic security. At Treasury, through the Financial Stability Oversight Council, we are working with regulators and industry leaders to further responsible AI use in the financial system. We are optimizing regulation for growth: moving from a posture focused solely on constraint toward one that recognizes that failure to adopt productivity-enhancing technology is itself a risk.” (Remarks)

• The Treasury Department posted “In support of the President’s AI Action Plan, which calls for clear standards, shared understanding, and risk-based governance to ensure artificial intelligence is deployed safely and responsibly, the U.S. Department of the Treasury today released two new resources to guide AI use in the financial sector, a shared Artificial Intelligence Lexicon and the Financial Services AI Risk Management Framework (FS AI RMF).”

• Treasury also posted “In support of POTUS’ AI Action Plan, the U.S. Department of the Treasury today announced the conclusion of a major public-private initiative to strengthen cybersecurity and risk management for artificial intelligence in the financial services sector.”

• Secretary Bessent posted “As this Administration has made clear, it is imperative that the United States take the lead on developing innovative uses for artificial intelligence, and nowhere is that more important than in the financial sector. This work demonstrates that government and industry can come together to support secure AI adoption that increases the resilience of our financial system.”

Federal Reserve

• Fed Governor Michael Barr delivered remarks at the New York Association for Business Economics entitled “What Will Artificial Intelligence Mean for the Labor Market and the Economy?“ He concluded, “I expect that AI will have a transformative effect on the economy and affect a large share of workers in ways that will challenge the ability of the private and public sectors to accommodate this adjustment. In the longer run, I expect AI will boost productivity and living standards, and it may even lead to new discoveries. Society will need to be nimble and bold to reduce the pain of short-term dislocations for workers and to ensure that the benefits are broadly shared. Widespread AI adoption will very likely lead to dramatic and sometimes difficult changes in the way many of us work and live, but the long-term benefits could be even more dramatic.” (Remarks)

CONGRESS

• On AI and data center growth, Rep. Pramila Jayapal (D-WA) said, “It’s kind of an incredible opportunity for local organizing, because these communities are coming together and saying, ‘Hey, I don’t want my water contaminated, I don’t want my utility prices going up, I don’t want jobs disappearing.’”

• Rep. Ro Khanna (D-CA) said, “We need to make sure that we’re on the side of people, not automation. Will the AI revolution benefit all of us or will it benefit them?”

• Rep. Yvette Clarke (D-NY) posted, “Welcome to our first post in our series on Digital Blackface in the World of AI. Today, we’re exploring the long history of the exploitation of Black creativity for the sake of someone else’s profits, and the abuse of Black creators by a system built upon their continued control and suppression. The stories of ‘Big Mama’ Thornton, Hattie McDaniel, and Sam Moore offer stunning insight into not only the vast hurdles and hardships that these few Black artists faced in their own lifetimes, but a glimpse into the despicable conditions that have confronted our greatest talents throughout history. We must understand that these are examples of a pattern, and not exceptions to a rule that persists to this day.”

• Clarke also posted “In this next post in our series on Digital Blackface in the World of AI, we turn to the present moment, where the patterns of appropriation have simply evolved with technology. From viral reaction memes built on the faces and expressions of Black creators, to fake accounts made to spread racist, Pro-MAGA agendas through the likeness of non-consenting Black folks, social media has become a new frontier for an old practice. What looks like “internet humor” or “just a trend” often echoes a deeper history: Black expression consumed, exploited, and monetized—while Black people themselves remain underpaid or excluded from the profits our image and culture generates. If we are serious about equity in the age of AI, we must confront how frequently Black identity becomes performance material for clicks, clout, and corporate gain.”

• House Foreign Affairs Committee posted “The Trump administration is working around the clock to win the AI Arms Race. The U.S. Tech Corps brings the Peace Corps into the 21st Century and helps countries experience the prosperity and security of building on the trusted American AI stack.”

• Rep. Steve Cohen (D-TN) posted “Trump is turning the EPA into the Environmental POLLUTION Agency. By killing the endangerment finding, they are endangering all of us. More cities full of smog, more pollution and health problems, more irreversible impacts to nature and wildlife—that’s what they’re giving us. So much for MAHA. It’s another reason why I won’t stop fighting Trump’s EPA. I led Democrats demanding transparency on Clean Air Act violators, I introduced the Clean Cloud Act w/ SenWhitehouse to put real standards and PENALTIES on AI data centers & cryptominers, and we are not slowing down. More to come.”

• Rep. Gabe Evans (R-CO) posted “AI is a game changing technology, and there can be only one global leader. If America does not win the AI race, communist China will. I joined RepLangworthy in sending Howard Lutnick, the US Secretary of Commerce a letter highlighting concerns with burdensome state AI regulations, urging a coherent national framework that protects consumers without stopping innovation.”

• Sen. Bernie Sanders (I-VT) posted “Do you think Elon Musk, Mark Zuckerberg and Jeff Bezos are investing in AI to help the working class of this country? No, they’re in it to accumulate even more wealth and power for themselves. We’ve got to make AI work for working people, not just for billionaires.”

• Sen. John Cornyn (R-TX) posted “AI Can Help Defend Against Cyberattacks”

• Sen. Jerry Moran (R-KS) posted “Rural small businesses face limited resources & workforce shortages, & AI has tremendous potential to fill in the gaps. SenatorCantwell and I introduced a bill to help businesses in KS & across the country utilize AI to meet their needs, expand & innovate.”

• Rep. Mike Lawler (R-NY) posted “The CHAT Act zeros in on AI and the potential harm that it can cause to our youth. We have seen in just the last 2 years how prevalent AI applications have become, how accessible to our kids, and we as elected officials have a responsibility to work with big tech to address these concerns.”

• House Financial Services GOP posted “We welcome USTreasury’s public-private initiative to advance the President’s AI Action Plan. The Committee’s bipartisan resolution highlights the importance of secure AI in financial services to protect consumers, unlock innovation, and ensure U.S. global leadership on AI.”

• Rep. Rich McCormick (R-GA) posted “My staff sent me this picture — my op-ed in print, sitting on the coffee table in my office. The message is simple: the AI race will be won by those who can power it. Right now, red tape is slowing America down. We need reliable, abundant energy to lead. ENERGY, SecretaryWright, housescience, let’s unleash American innovation through comprehensive federal strategy and win the AI race!”

• Sen. Chris Murphy (D-CT) posted “Big tech is trying to buy the 2026 elections. Flooding the airwaves and your feed with ads to elect candidates who won’t protect your kids from online addiction and won’t stand in the way of AI stealing your jobs.”

• Sen. Mark Warner (D-VA) posted “AI has some incredible applications, but it also will likely upend our economy and make it harder for young adults to find jobs. I’m deeply concerned, and I’m focused every week on finding solutions for us to help ease the transition and help folks land in good-paying jobs.”

• Sen. Chris Van Hollen (D-MD) posted “So let’s get this straight: Hegseth wants AI to be programmed to kill people WITHOUT any human authorization or intervention? Is he trying to devise a system to shield himself and others from allegations of war crimes?”

• Rep. Josh Gottheimer (D-NJ) posted “AI is already changing how we work, and we can’t let the American worker get left behind. My bipartisan bill with RepMikeLawler will help workers build critical AI skills, boost productivity, and strengthen our economy — all while keeping the U.S. at the front of the pack.”

• Rep. Nathaniel Moran (R-TX) posted “Creative arts can only touch, move, and inspire the soul if they emanate from the soul. AI is a tool for humans, but it is not a replacement. I co-authored the NO FAKES Act not only to protect artists from the unauthorized use of their voices, likenesses, and identities through AI-generated content, but also to preserve the integrity of creative work in the modern era by keeping it tethered to a human soul.”

• Rep. Victoria Spartz (R-IN) posted “The worst AI does is answer political and policy questions since politicians mainly repeat talking points, BS, and lies — most public data is pretty much garbage, and decisions are made behind closed doors. So it’s garbage in, garbage out.”

• Sen. Kirsten Gillibrand (D-NY) posted “AI tools can offer real benefits for older Americans and people with disabilities, but we must make sure our seniors are protected from potential scams. As ranking member of the Senate Aging committee, I’m pushing make sure older Americans can use this technology safely.”

What I’m Reading This Week

• Is AI sovereignty possible? Balancing Autonomy and Interdependence, Brooke Tanner, Cameron F. Kerry, Andrew W. Wyckoff, Nicoleta Kyosovska, Andrea Renda, and Elham Tabassi, Brookings.

• The Sovereignty Gap in U.S. AI Statecraft, Pablo Chavez, Lawfare.

• AI is global — and regulation is struggling to keep up, Nick Brett, The Times.

• AI Can Help Defend Against Cyberattacks, Anne Neuberger, Wall Street Journal.

• From Davos to New Delhi, Rupture of Global Order Tests AI Governance, Alison Gillwald, Tech Policy Press.

• Democrats Run on AI Policy in 2026 Campaigns, Ashley Gold, 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

The Department of Labor released a new framework for AI literacy, defining five foundational content areas and seven guiding principles for effective delivery.

The partial government shutdown affecting the Department of Homeland Security has resulted in a temporary lapse in funding for CISA, forcing employees to either face furloughs or continue working without pay.

On Capitol Hill, last week’s Senate and House hearings with SEC Chair Paul Atkins on SEC oversight centered on the use of AI agents in financial services and the Commission’s anticipated innovation exemption.

Read more below

Congress

Hearings

Last week

• On February 11, the House Education and the Workforce, Workforce Protections Subcommittee held a hearing on “Building an AI-Ready America: Safer Workplaces Through Smarter Technology.”

• On February 11, the House Financial Services Committee held a hearing on “Oversight of the Securities and Exchange Commission.”

• On February 12, the Senate Banking, Housing and Urban Affairs Committee held a hearing on “Oversight of the U.S. Securities and Exchange Commission.”

Legislation

• The Senate Commerce, Science, and Transportation Committee passed the National Programmable Cloud Lab Network (NPCLN) Act to create a national network of six remotely accessible programmable cloud laboratories (PCLs) for academic research. (Text)

• Sens. Jerry Moran (R-KS) and Maria Cantwell (D-WA) introduced the Small Business Artificial Intelligence Training Act that would authorize the Department of Commerce to work with the Small Business Administration to create and distribute artificial intelligence training resources and tools to help small businesses leverage AI in their operations. (Text)

• Sens. Adam Schiff (D-CA) and John Curtis (R-UT) introduced the Copyright Labeling and Ethical AI Reporting (CLEAR) Act to require companies to disclose their use of copyrighted work to train generative AI models, implementing ethical guidelines and protections to promote transparency. (Text)

• Reps. Josh Gottheimer (D-NJ) and Michael Lawler (R-NY) introduced The AI Workforce Training Act to amend the Internal Revenue Code to establish a federal tax credit for businesses that invest in artificial intelligence training for their employees. (Text)

• Sens. Raphael Warnock (D-GA) and Dick Durbin (D-IL) and Rep. Brad Schneider (D-IL) introduced the Investing In Tomorrow’s Workforce Act to create a grant program through the Department of Labor to support industry partnerships in developing training programs for workers who are, or are likely to become, dislocated because of advances in technology. The bill also increases funding for National Dislocated Worker Grants and amend the Workforce Innovation and Opportunity Act (WIOA) to ensure workers who are dislocated by automation are included in WIOA programs. (Press release)

• Sens. Cory Booker (D-NJ), Mike Rounds (R-SD), and Martin Heinrich (D-NM) and Reps. Ted Lieu (D-CA) and Jay Obernolte (R-CA) introduced bill to authorize the Director of the National Science Foundation to identify grand challenges and award competitive prizes for artificial intelligence research and development. (Text)

Correspondence

• Sens. Marsha Blackburn (R-TN) and Richard Blumenthal (D-CT) sent a letter to the Chief Executive Officer of Miko, Inc., launching an investigation into why the company exposed sensitive data involving children through an unsecured, publicly accessible dataset. (Letter)

• Sens. Adam Schiff (D-CA), Jon Ossoff (D-GA), Chris Van Hollen (D-MD), Richard Durbin (D-IL), John Hickenlooper (D-CO), and Reverend Raphael Warnock (D-GA) sent a letter to Department of Defense (DoD) Secretary Pete Hegseth requesting information about DoD plans to use the xAI chatbot Grok, despite reports that the chatbot has promoted antisemitic and other dangerous content. (Letter)

• Reps. Sydney Kamlager-Dove (D-CA), Gregory Meeks (D-NY), Jim Himes (D-CT), Robert Garcia (D-CA), Adam Smith (D-WA), Grace Meng (D-NY, Lois Frankel (D-FL), Jimmy Gomez (D-CA), Brad Sherman (D-CA), George Latimer (D-NY), Johnny Olszewski (D-MD), Bill Keating (D-MA), Ami Bera (D-CA), Gabe Amo (D-RI), and Julie Johnson (D-TX) sent a letter to the Acting Inspector General for the U.S. Department of Commerce demanding an investigation into financial conflicts of interest surrounding President Trump’s decision to approve the export of 500,000 advanced AI chips to the United Arab Emirates in May 2025. (Letter)

• House Select Committee on China Chairman John Moolenaar (R-MI) and House Foreign Affairs Committee Chairman Brian Mast (R-FL), House Foreign Affairs Ranking Member Gregory Meeks (D-NY), and Reps. Bill Huizenga (R-MI), Sydney Kamlager-Dove (D-CA), Greg Stanton (D-AZ), Michael Baumgartner (R-WA), and Johnny Olszewski (D-MD) sent a letter to Secretary of State Marco Rubio and Secretary of Commerce Howard Lutnick on the need for closer cooperation with partners and allies to restrict China’s access to advanced semiconductor manufacturing equipment. (Letter)

Publications, Meetings, and Events

• House Science, Space and Technology Committee Chair Brian Babin (R-TX) published an op-ed in the Washington Times entitled, “America Must Win the Artificial Intelligence Race with China,” saying, “Our jurisdiction spans the Department of Energy’s National Laboratories, the National Science Foundation’s AI research and the National Institute of Standards and Technology’s leadership on voluntary standards and model evaluations. That places us at the center of America’s AI ecosystem. We are advancing practical legislation to expand access to federal computing resources, strengthen research and development, train the next-generation workforce and promote the consensus-based standards that have made U.S. technology the global benchmark.” (Op-ed)

• Rep. Sam Liccardo (D-CA) published an op-ed in the Wall Street Journal entitled, “Congress Shouldn’t Stop AI Innovation,” saying, “No amount of regulation will stop AI development. Slowing innovation will ensure that China writes the rules for the next century. If the Democrats retake Congress in November, we must advance policies that acknowledge the automation-related job loss and rising utility bills Americans endured long before the arrival of ChatGPT. AI certainly could exacerbate those maladies, but we can better address them by taking advantage of the AI infrastructure build-out to spur overdue policy change.” (Op-ed)

Trump Administration

Department of Labor (DOL)

• DOL’s Employment and Training Administration published a framework for AI literacy, outlining outlines five foundational content areas and seven delivery principles for AI literacy. (Framework)

National Science Foundation (NSF)

• The NSF, in coordination with partner agencies from Australia, India and Japan, announced the first cohort of awards made under the Advancing Innovations for Empowering NextGen AGriculturE (AI-ENGAGE) initiative to support six international research projects that will provide artificial intelligence and critical emerging technologies to farmers across the United States and Indo-Pacific region. (Press release)

National Institute of Standards and Technology (NIST)

• NIST announced funding totaling $3.19 million to eight small businesses in seven states under the Small Business Innovation Research (SBIR) program to support research and development related to artificial intelligence, medical diagnostics, biotechnology, semiconductors, quantum and other key technologies. (Press release)

Cybersecurity and Infrastructure Security Agency (CISA)

• Due to the partial government shutdown of the Department of Homeland Security, funding for CISA has temporarily lapsed and CISA employees are furloughed or working without pay. (Politico)

Government Publishing Office (GPO)

• On March 4, the GPO will hold a virtual meeting of the Depository Library Council to discuss “Understanding AI bias: how it arises and how to respond.”

Noteworthy Quotes and Events

ADMINISTRATION

Cybersecurity and Infrastructure Security Agency (CISA)

• In House testimony, CISA Acting Director Madhu Gottumukkala said, “A shutdown would degrade our capacity to provide timely and actionable guidance to help partners defend their networks.” (Politico)

Commodity Futures Trading Commission (CFTC)

• Chair Mike Selig posted “Innovators are harnessing technologies such as artificial intelligence, blockchain, and cloud computing to modernize legacy financial systems and build entirely new ones. Under my leadership, the Commission will develop fit-for-purpose market structure regulations for this new frontier of finance. The Innovation Advisory Committee will play a critical role in advising the Commission on the commercial, economic, and practical considerations of emerging products, platforms, and business models in the financial markets so that it can develop clear rules of the road for the Golden Age of American Financial Markets.”

CONGRESS

Senate Banking SEC Oversight Hearing Q&A

Sen. Mike Rounds (R-SD)

• Sen. Mike Rounds (R-SD): “I want to move back into an area that I think is really important, and that is the development of artificial intelligence and its use under the Biden Administration we saw secure. Regulation used to achieve some political and social objectives, often at the expense of investors and small businesses. I want to thank you for your commitment to returning the SEC to its core mission. Chairman Atkins, the administration’s 2025 AI Action Plan encourages the development of regulatory sand boxes at independent agencies, including the SEC this venue would allow SEC regulated entities such as broker dealers, investment advisors, to test new AI tools under structured oversight. Now I’ve introduced legislation with Senators Heinrich, Kim, and Tillis that would do just that bipartisan legislation. Do you believe that our legislation would give the SEC the tools it needs to foster responsible AI innovation, and could it serve as a useful model as the SEC implements the AI action plan?”

  • SEC Chair Paul Atkins: “Well, thank you, Senator, I haven’t actually had the opportunity to review your language, happy to do that and discuss it. But the premise, I agree with you very much, that I think it would be very useful, and I’ve been talking about innovation exemption to begin that at the SEC to allow entrepreneurs in a sandbox, like environment that’s cabined by, you know, tie, it’s cabin time limited, transparence, you know, flexible, and then focused on investor protection. So, all of those principles, you know, I think, are important and to allow people to try different things in a particular environment and then prove their concept.”

• Rounds: “It’s not going away, is it?”

  • Atkins: “No, no.”

Sen. Mark Warner (D-VA)

• Sen. Mark Warner (D-VA): “We all know AI is going to transform everything. I think it’s clearly going to transform markets, banking, both at the banker and broker dealer level, but also at the retail level. And one of the things I’m really concerned about is kind of agentic AI where the AI tools can self execute, do trades without any human input. And I wonder, if we don’t have some guard rails, here, are people going to be able to say, Well, my agentic AI agent did something was clearly illegal or bad, but I didn’t you know that was that tool. It was not me as an individual or me as a firm. So, I got a couple questions. First, you know, do you think banks and broker dealers will take it up a level have appropriate guard rails in place today to make sure that that agent, AI, agent, doesn’t commit a malfeasance or something illegal.”

  • SEC Chair Paul Atkins: “Yeah, well, that those are very good questions, and I share your concern with that. And this is a new technology, obviously, and people are still experimenting with it. And so I can’t really say, you know, what’s going on with respect to, you know, individual broker dealers or anything else, but I do agree that, you know, we can’t allow that.

• Warner: “I think there’d be a lot of bipartisan interest in helping on this. And then when we take it down to, like, the retail investor. I just want to make sure that you know that the same fair dealing and conflict of interest standards that exist for the retail investor would also apply to that agentic AI agent who is acting on behalf of the retail investor.”

  • Atkins: “Yes, so I think that’s important. And so whichever way this technology grows and changes, I think we have to be very attuned to those potential problems. So even in this last discussion here about proxies and whatnot, obviously, we’ve seen proxy advisory firms. We’ve seen banks now starting to rely on AI rather than, you know, hiring out, forming it out to third party advisors.”

• Warner: “Yeah, and again, we saw, was it this week or last week or, you know, I think one of the new tools came out, and all the wealth management firms took a huge hit on the marketplace, so they thought AI was going to take over. I, I just think this is moving so quickly, it would be great if we could get a little bit ahead of it, and we’re not trying to chase it after the fact.”

  • Atkins: “Yeah, we have a special task force at the SEC, headed by a former enforcement attorney, Valerie Szczepanik, who’s looking at AI for tools for us, for example, at the SEC, with respect to enforcement, Corporation Finance reviews and things like that.”

House Financial Services on SEC Oversight Q&A

Rep. Bill Foster (D-IL)

• Rep. Bill Foster (D-IL): “Thank you, Mr. Chair and our witness, I presume that you’ve been encouraged to use artificial intelligence and all of your workings from the White House. It was a general directive. And obviously industry is moving very fast that way. Now, in terms of the 1000-page prop that you have there, how long do you think it would take AI to summarize that as in one paragraph, one page, 10 pages, whatever level of detail you wanted, maybe a few seconds. I don’t know. Probably neither of us are an expert on that, but I imagine it could be done in a few minutes. And so that, in terms of a burden on investors, it seems like having a lot of information, there is not a burden on investors in an AI world. And so I think that’s an important thing that should go into your thinking as to what the appropriate level of disclosure materiality, I believe, is the best in the that the investor is the best judge of materiality. And if we err on the side of having a lot of you know, probably 95% of what’s in that stack of paper is not material. But there could be a footnote in there that is absolutely crucial. No human is likely to pick it up. As you point out, no human is going to read that stack of paper, but an AI can and find that footnote. And so it seems like, you know, the whole narrative of, let’s get to less disclosure is going in the wrong direction for an AI world. You know, I imagine that that stack of paper is probably 90% generated by AI, or soon will be if it’s not, and so that, I think that it’s a much better position if we have, you know, the AIS, you know, for IPOs and things like that, generate a lot of information, and then let the AIS of potential investors look at it in great detail, that you’ll end up with a More efficient market and less mistakes being made by investors due to lack of information. So, have you been thinking about that sort of thing when you puzzle through the whole what’s the right level of information?”

  • Atkins: “Oh, absolutely, but again, there’s when you think of the cost and the amount of the of work that goes into this sort of disclosure with the lawyers and everything else. You know, what sort of bang for the buck are we getting?”

• Foster: “But anyway, and lawyers are going to get crushed too with AI, you know. I mean, most companies have everything electronically. They just turn their AI loose on that and generate, you know, it is coming at us fast. Yeah, well, it’s that, that’s a good point. Yeah, anyway, so I really encourage you to think about that, because I think that’s going to be a much safer market where there’s a lot of information and that each investor, or the investor’s personal AI advisor will have access. To that information, but summarize it. You know, just in the case of climate, a lot of investors are going to think climate is material. Others will think it’s immaterial, and it’s we’re in a better position if it is the potential investor talking to their AI advisor saying, I do or I don’t care about climate, and then getting a summary that reflects their preferences.”

Miscellaneous

• Sen. Elizabeth Warren (D-MA) issued a statement on comments by LTG Joshua Rudd, nominee to head U.S. Cyber Command and the National Security Agency, confirming that China is seeking to acquire advanced AI chips to accelerate its development of AI-enhanced weapons. Warren said, “A senior military officer nominated by President Trump is warning that China is aggressively seeking to acquire advanced AI chips to accelerate its development of AI-enhanced weapons. This Administration has failed to take these risks seriously. I will keep working with my colleagues to pass bipartisan legislation to protect U.S. economic and national security.” (Press release)

• Rep. Sarah McBride (D-DE) said she plans to focus on “scalpel solutions, not sledgehammer solutions” for AI, adding, “I don’t think we’re going to figure this all out and get something major on the thorniest of issues passed before January of 2027. These issues… will inevitably bleed into a new Congress, whomever is in the majority.” (Punchbowl)

• Rep. Sam Liccardo (D-CA) intends to focus on “a human in the loop if you’re deploying AI-enabled software to ensure that the outcomes of your lending decisions are not discriminatory and the treatment of the financial data is secure.” (Punchbowl)

• Rep. April McClain Delaney (D-MD) said of AI and quantum, “We should have some standards. I do think that there should be some coordination, and I do think that we should have greater collaboration, including with the National Science Foundation.” She added, “I think NIST is the right place to do much of that framework because it has deep expertise in quantum and many aspects of AI. But I hesitate to limit it only to NIST, because other stakeholders, including universities and private companies, also need to be involved.” She also said, “I think we almost have to have a new deal on infrastructure, AI, data, and platform accountability that comes together, because what we have now does not meet the moment.” (MeriTalk)

• Sen. John Cornyn (R-TX) posted “AI’s energy demands are fueling a nuclear comeback”

• Sen. Chris Van Hollen (D-MD) posted “At this perilous time in our country, we need quality journalism more than ever. Using AI to fill a page and calling it “analysis” is the opposite of that. The Baltimore Sun Guild is right to call this out. It’s a disservice to the Sun’s readers and its reporters.”

• Sen. Mark Warner (D-VA) posted “We’re not ready for the impact AI is going to have on our workforce. Every week in the Senate, I am working to make sure we’re building an economy that can withstand these massive upheavals.”

• Sen. Jack Reed (D-RI) posted “RED ALERT: AI romance scams are up this time of year. Know how to spot red flags from V-Day romance scammers”

• Sen. Marsha Blackburn (R-TN) posted “After we confronted Miko for exposing sensitive data involving children to the public, the company scrubbed this information and denied any wrongdoing. Miko needs to answer to the American people for violating kids’ privacy and putting children at risk.”

• Sen. Bernie Sanders (I-VT) posted “Microsoft AI CEO Mustafa Suleyman says most white-collar work “will be fully automated by an AI within the next 12 to 18 months.” If that’s true, it’s an economic earthquake. We need a moratorium on new AI data centers to make sure AI works for workers, not just billionaires.”

• Sanders also posted “Electricity, the automobile, radio, TV, computers, the internet—all changed the way we live. But they pale in comparison to the revolution AI will bring about. The question is: who benefits? It must work for working families, not just billionaires.”

• Sen. Ed Markey (D-MA) posted “What’s described here isn’t isolated—it’s systemic. Embedded bias in AI has real-world consequences. My AI Civil Rights Act would put strict guardrails on algorithms to prevent bias and discrimination. Innovation without safeguards isn’t progress.”

• Rep. Valerie Foushee (D-NC) posted “It was great to meet with Democrat members of the former bipartisan AI Task Force with my HouseDemocrats Commission on AI colleagues. Republicans are blocking all legislation to prevent AI job cuts and protect civil rights in the age of AI, but we remain ready to pass AI guardrails immediately to protect our communities.”

• House Science Committee posted “Chairman RepBrianBabin lays out why America must lead — and win — the global AI race. AI will shape our economy, our security, and our future.”

• Sen. Dick Durbin (D-IL) posted “The rapid development of AI and other automating technologies will profoundly transform the American workplace. I joined SenatorWarnock and RepSchneider to introduce the Investing in Tomorrow’s Workforce Act to equip American workers for the future and ensure no one is left behind in the age of automation.”

• Rep. Ilhan Omar (D-MN) posted “AI is shaping the future whether we like it or not. Technology itself is not the problem. The problem is deploying powerful tools without guardrails, transparency, or accountability. AI should be a tool that works for people – not one that extracts value and burdens workers.”

• Rep. Zach Nunn (R-IA) posted “Taiwan’s greatest threat? The Chinese Communist Party. Taiwan’s greatest ally? The United States of America. I’ve seen Beijing’s coercion tactics firsthand. Our U.S.-Taiwan Defense Innovation Partnership Act strengthens U.S. coordination on AI to counter the CCP’s malign influence in the Indo-Pacific.”

• Rep. Mark DeSaulnier (D-CA) posted “The wealth gap between big corporations and the working people who make these companies’ success possible has been widening for decades and will only be exacerbated by the unchecked rise of AI. As a senior member EdWorkforceDems, I’m pushing my colleagues in Congress to act now to protect American workers by both implementing commonsense guardrails on AI and ensuring the ultrawealthy pay their fair share.”

• Sen. Adam Schiff (D-CA) posted “As our digital landscape rapidly evolves, it is important that we protect the work of those bring their talents to music, television and film. I’m working with SenJohnCurtis to pass the CLEAR Act, which will guarantee transparency in the development of AI models to ensure that digital creators are fairly compensated for their work.”

• House Homeland Security Committee Chair Andrew Garbarino (R-NY) said, “CISA is defending our networks from relentless adversaries while preparing for midterm elections this fall. It is unacceptable that many of these frontline personnel could lose their paychecks for the second time in six months because of Washington’s dysfunction.” (Politico)

• Sen. Chris Murphy (D-CT) delivered remarks at the Munich Security Conference on “Outsmarting Ourselves? Risks and Rewards of the AI Race,” saying, “Our primary victory, in the short run, is to be able to work together or separately on a regulatory regime that doesn’t collapse our economy as we lose jobs at a pace that creates political disintegration, and that we don’t collapse our cultures spiritually as we transition the human race away from the core basic meanings and purposes - conversation, friendship, creativity, problem solving - to machines too quickly… I wake up every day thinking that victory looks like preventing the worst, more so than capturing the best. But obviously you want that balance in the end, that’s victory to me.” (Press release)

• On unregulated AI and the unchecked power of tech leaders, Murphy said, “What freaks people out in the United States is the idea that there are going to be only a handful of companies that are going to control these enormous data sets and these enormously powerful capabilities, and that one person could wake up one day and decide to make a tweak to the code, the algorithm, the way in which the LLM works, and your existence has fundamentally changed.” (Press release)

• On the impact of political spending on AI regulation, Murphy said, “A mandate for an American leader to prioritize working internationally to regulate AI doesn’t come from nowhere. The industry right now is spending millions of dollars trying to suppress conversation in the United States at the state level, and at the federal level, around a regulatory framework, and so it becomes very difficult for there to be any president who’s going to prioritize bringing this conversation to China or to our allies, if there are hundreds of millions of dollars being spent on our politics in the United States by the AI companies and by the technology companies trying to destroy any enthusiasm or conversation about regulation, that’s the political reality.” (Press release)

• On precedential regulation, Murphy said, “There is plenty of history in the way that the United States regulates emerging industries to show that we actually can prioritize protecting consumers, protecting human beings, rather than allocating who wins in a market or who loses in a market. You know, if you just started with some very easy steps, like requiring watermarks for AI generated content, keeping kids away from these chat bots that doesn’t give advantage to one company or another, it just protects human beings from the immediate abuses.” (Press release)

• Murphy posted “The AI leaders came to the Munich Security Conference acting like they want international regulation. Yet they are spending hundreds of millions of dollars in American elections trying to stamp out any conversation about regulation.”

• Murphy also posted “We need to ask ourselves an important question about our AI future. What happens to the human soul if we outsource basic functions - like friendship, creativity and problem solving - to machines? The answer shouldn’t just be left to industry. It needs to involve all of us.”

What I’m Reading This Week

• Why AI is Central to Federal Identity Assurance, FedScoop.

• IRS Adopts Generative Artificial Intelligence Policy, Benjamin Valdez, Tax Notes.

• AI Raises the Stakes for National Security. Here’s How to Get it Right, Chris Lehane, FoxNews.

• AI’s Bitter Rivalry Heads to Washington, France24.

• AI Is Shaping Up to Be America’s Next Political Fault Line, Matthew Urwin, BuiltIn.

• Beyond the Chips: A Better Strategy for AI Dominance, Sharon Squassoni, National Interest.

• Why are Chinese AI models dominating open-source as Western labs step back?, Dashveenjit Kaur, AI 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

In addition to developing a comprehensive national AI regulatory framework, the White House is also drafting an AI security policy framework aimed at helping organizations better identify and manage risks associated with AI systems.

Treasury Secretary Scott Bessent testified before the Senate Banking and House Financial Services Committees that the Financial Stability Oversight Council is prioritizing the responsible integration of artificial intelligence to enhance financial stability while closely monitoring emerging AI-related risks. At the same time, several Federal Reserve Governors emphasized the Fed’s growing focus on AI’s broader implications for the labor market, productivity, and the overall economy.

Read more below

Congress

Hearings

Last week

• On February 3, the House Education and the Workforce Health, Employment, Labor, and Pensions Subcommittee held a hearing on “Building an AI-Ready America: Adopting AI at Work.”

• On February 4, the Senate Commerce, Science and Transportation Committee held a hearing on “Hit the Road, Mac: The Future of Self-Driving Cars.”

This week

• There are no relevant hearings scheduled this week.

Legislation

• Sens. Cory Booker (D-NJ), Mike Rounds (R-SD), and Martin Heinrich (D-NM) and Reps. Ted Lieu (D-CA) and Jay Obernolte (R-CA) reintroduced the AI Grand Challenges Act to direct the National Science Foundation to establish an AI Grand Challenges Program and administer prize competitions to incentivize researchers, entrepreneurs, and innovators to harness AI to address specific and measurable challenges to benefit the United States and serve the public good. (Text)

• Reps. Rob Menendez (D-NJ) and August Pfluger (R-TX) introduced the AI for Secure Networks Act to direct the federal government to examine how AI can be responsibly used to strengthen the security and resilience of telecommunications networks. (Text)

• Reps. Jennifer McClellan (D-VA), Jay Obernolte (R-CA), and Rep. Bob Latta (R-OH) introduced the National Commission on Robotics Act to establish a national commission tasked with evaluating the United States’ competitiveness in robotics and providing policy recommendations to strengthen American leadership in this critical technology sector. (Press Release)

• Reps. Bill Foster (D-IL) and Pete Sessions (R-TX) introduced the Stop Identity Fraud and Identity Theft Act to establish a government-wide approach to addressing vulnerabilities in online identity verification in financial services. (Text)

• Sens. Elizabeth Warren (D-MA), Andy Kim (D-NJ), Elissa Slotkin (D-MI), and Chris Van Hollen (D-MD) introduced a resolution “condemning and calling for the reversal of President Trump’s decision to allow the export of advanced artificial intelligence chips to the United Arab Emirates, despite significant risks to national security and just months after the United Arab Emirates signed a secret $500,000,000 deal to buy close to a majority stake in the Trump family crypto company World Liberty Financial.” (Text)

• Reps. Rashida Tlaib (D-MI), Pramila Jayapal (D-WA), and Delia Ramirez (D-IL) introduced the Defund the Oligarchs, Fund the People Resolution. The press release said, “The legislation calls for an end to the political and economic dominance of billionaire oligarchs… As wealth concentrates, our democracy becomes less responsive to the needs of everyday people, and necessities like housing and health care have become unaffordable. Campaign contributions allow ultra-rich oligarchs and corporations to purchase influence, winning tax breaks for the oil and gas industry, unrestricted development of artificial intelligence, and industry-friendly crypto legislation.” (Press release)

Correspondence

• Sen. Maggie Hassan (D-NH) sent a letter to bondu, a company that makes interactive AI toys for children, requesting information on its data security practices following a report about a security vulnerability that resulted in the public exposure of bondu users’ personal information. (Letter)

• House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP) Ranking Member Ro Khanna (D-CA) sent a letter to World Liberty Financial (WLF) requesting information on the reported $500 million investment deal with United Arab Emirates (UAE) Royal Family member Sheikh Tahnoon bin Zayed Al Nahyan and potential influence on the diversion of advanced artificial intelligence chips to China from the UAE. The letter also seeks information from World Liberty Financial about its facilitation of a $2 billion investment in a cryptocurrency exchange founded in China by Changpeng Zhao, recently pardoned by President Trump. Khanna sent a related letter to Benjamin Wallace, United States Attorney for the District of Delaware. (WLF Letter)(Wallace letter)

Publications, Meetings, and Events

• Chairman of the House Committee on Energy and Commerce Brett Guthrie (R-KY) published an essay in the Orrin G. Hatch Foundation’s 2025 Hatch Center Policy Review on “Dominance, Deployment, and Safeguards: The Path for American AI Leadership,” saying, “What makes this moment unique is the pending threat to America’s leadership in artificial intelligence (AI) technology by the People’s Republic of China (PRC) and Chinese Communist Party (CCP)–backed companies, many of which have developed advanced technologies nearly at parity with that of American AI companies. Knowing that the AI revolution will define economic growth and global competitiveness for the next century, the United States must choose to innovate. The stakes couldn’t be higher. China already deploys next-generation technologies to advance many of the regime’s most sinister goals focused on enhancing the power of its Orwellian surveillance state utilizing advanced computing. Even more concerning to the American public is the threat of an adversary’s technology stack serving as the building blocks for future advancements or as a strategic chokehold. For example, we have unfortunately learned this lesson the hard way through Chinese bottlenecks related to telecommunications equipment and critical mineral mining and processing.” (Essay)

Trump Administration

White House

• The White House Office of the National Cyber Director, with the Office of Science and Technology Policy, is developing an AI security policy framework to help organizations manage risks that affect how their AI systems function. National Cyber Director Sean Cairncross said the President “is very forward leaning on the innovation side of AI. We are working to ensure that security is not viewed as a friction point for innovation.” (NextGov)

U.S. Commission on Civil Rights

• On February 24, the Commission on Civil Rights holds a meeting on artificial intelligence and its application in voting administration.

Noteworthy Quotes and Events

ADMINISTRATION

Treasury Department

• Treasury Secretary Scott Bessent testified before the Senate Banking Committee and House Financial Services Committee that the Financial Stability Oversight Council “is prioritizing the responsible use of artificial intelligence to strengthen financial stability. The council is working with public and private sector partners, including international counterparts, to enhance system resilience while closely monitoring emerging risk.” (Remarks)

Federal Reserve

• In remarks on Economic Outlook and Supply-Side (Dis)Inflation Dynamics, Fed Vice Chair Philip Jefferson said, “…data through the third quarter and the readings on spending we have received for the fourth quarter suggest that domestic demand held up well last year. It was supported by strong consumer spending and business investment, including investment in artificial intelligence (AI), which could support productivity growth. For 2026, I have revised up my growth forecast modestly in recent weeks, informed by signs of the economy’s continued resilience. Now, I expect the economy to grow at a rate similar to last year’s estimated rate of 2.2 percent.” (Remarks)

• Fed Governor Lisa Cook delivered remarks on the Economic Outlook, saying, “Looking ahead, as I have discussed in several speeches, I see the continued proliferation of artificial intelligence (AI) as likely to have a significant effect on the labor market and the economy. Growing evidence shows that AI has the power to significantly boost productivity. Better productivity gains would support economic output and allow real wages to increase. I also see AI accelerating the generation of ideas, which could lead to the creation of new products, businesses, and jobs. Nonetheless, I am aware that job destruction may precede job creation, such that the unemployment rate might rise as the economy transitions, causing hardship for many workers and their families. I am concerned that there is a dynamic inconsistency problem such that there could be a mismatch between the arrival of costs related to AI investment and the arrival of benefits, including higher productivity that is noninflationary.” (Remarks)

CONGRESS

Senate Banking FSOC Hearing Q&A

Sen. Mike Rounds (R-SD)

• Sen. Mike Rounds (R-SD): “The FSOC 2025 Annual Report recommends that its member agencies use the council’s artificial intelligence working group to identify regulatory impediments to the responsible adoption of AI by financial institutions from your perspective, what are the biggest impediments today that prevent banks from adopting AI responsibly, especially for compliance, fraud detection and risk management?”

  • Treasury Secretary Scott Bessent: “Well, as you know, AI is an exciting and new technology, and there’s a great amount of learning to do here, so FSOC treasury, the regulatory agencies, are working with our private partners to implement in a gradual way, robust usage of AI. AI can be a great tool, but AI, we have to also think that AI can be a risk through state and non-state actors. So, it is a public private partnership, and we are pushing very hard across the agencies and at Treasury.”

• Rounds: “FSOC’s report also recognizes that overly complex and subjective supervision, like reliance on vague concepts such as reputational risk, as you mentioned in your opening statement, restricts valuable activities given FSOC’s push for clearer standards and responsible AI adoption would a time limited AI sandbox for financial institutions with clear guardrails help firms test AI tools in a controlled setting while regulators evaluate risks and benefits.”

  • Bessent: “Senator that is clearly the one very interesting option, and we are considering that moving forward, we’d be happy to work with your staff on that.”

Sen. Mark Warner (D-VA)

• Sen. Mark Warner (D-VA): “Agentic, AI. We got to come back and talk about agentic. AI. Huge possibilities with AI, but we’ve got to be careful about that.”

House Financial Services FSOC Hearing Q&A

Rep. French Hill (R-AR)

• Rep. French Hill (R-AR): “Mr. Secretary I appreciate members on the Republican side allowing you to clarify points on some key discussions back and forth. And we have had some good ones today. There was an exchange you had with my friend from Massachusetts, Mr. Lynch, about artificial intelligence and in your capacity as Chair of FSOC, our view here is that artificial intelligence offers great promise for better consumer service, fighting fraud, more accuracy in providing customer service, but also in providing a more robust compliance process with the rules in banking and the brokerage and securities industry, I wonder if you could talk from an FSOC point of view about a philosophy of overseeing artificial intelligence, both in the financial services industry and among the supervisors of the financial services industry, yes.”

  • Treasury Secretary Scott Bessent: “So again, we are working with our private sector partners to best practices. And Chairman as you said, there are two pieces to this. There is service improvement, which we are, for instance, working on at the IRS. We hope to be able to use artificial intelligence there to get customer weight down and service down on the other side, both financial security, alerting everyone to the risk of what is going on, but this is a transformative change. And as I mentioned to the Congressman, we look forward to working with you on legislation to make sure that the technology does not move too far ahead of the legislation.”

Rep. Stephen Lynch (D-MA)

• Rep. Stephen Lynch (D-MA): “I just want to do a comparison of the FSOC reports. Let’s go back to 2024 and then we’ll talk about the current report. In the previous report, the members of FSOC expressed serious concerns about related to potential risk to financial stability, regarding the lack of explainability and high complexity of AI and the approaches that have a potential to heighten financial instability, especially in the areas of bias and discrimination and credit decisions that was in 2024 your report in 2025 focuses on removing regulatory impediments. So, in 2024 we were concerned about consumer protections, and now, under your leadership, we’re concerned with eliminating regulatory impediments, the dangers. And that was a that was a report during a time where the Chairman and I were Co-chairs of an AI Task Force, those dangers haven’t gone away. In reality, those dangers are still as severe for the American consumer, but they are absent from FSOC report. So, it’s obvious you’ve eliminated or dropped that priority as an issue for FSOC. So can you explain the change from protecting this to consumer and now eliminating regulations?”

  • Treasury Secretary Scott Bessent: “We are charged with financial stability, and we are focused on leveraging AI strength and the financial system resilience, but with economic growth and a security lens.”

• Lynch: “On the issue of explainability, how when people apply for credit and are denied, we don’t have the ability for AI to explain why they were denied. Is that? Is that a concern? I mean, we are talking about the trust within the financial services.”

  • Bessent: “It could be a concern, but we don’t view it as a priority for financial stability.”

• Lynch: “That that’s the truth. That’s the truth, OK.”

Outlook for Comprehensive AI Legislation

• Rep. Ted Lieu (D-CA) said, “The White House has led the industry astray, down a bad path. Steve Scalise is very opposed to any kind of legislation at the federal level. … And that’s now resulted in three things the tech industry wanted to avoid, which is, backlash from the public, backlash from bipartisan members of Congress and multiple states regulating their industry.” (Politico)

• Rep. John Gottheimer (D-NJ) said, “I think Republicans have certainly ceded the turf.” (Politico)

• House Judiciary Chair Jim Jordan (R-OH) said, “I don’t know about moving anything, but we’re definitely talking about AI.” (Politico)

• On his developing bill, Rep. Jay Obernolte (R-CA) said, “Were going to be continuing to monitor AI as it matures, and create a framework that is flexible enough to change and capture these new trends when come online.” (Broadband Breakfast)

Miscellaneous

• Sen. Bernie Sanders (I-VT) issued a press statement saying, “Artificial intelligence and robotics will transform the world. Today, a handful of billionaires in Silicon Valley are making decisions behind closed doors that will shape the future of humanity. Meanwhile, working people have no voice in these discussions, and far too little visibility into the rapid changes already underway. That is why I look forward to visiting California this month to meet with AI leaders and to ask the fundamental questions we need to be asking as a country.” (Press release)

• Regarding his AI Overwatch Act, Sen. Jim Banks (R-IN) said, “Chairman Mast is doing great work and we’re having a lot of conversations about working together.” (Punchbowl)

• Rep. Pete Sessions (R-TX) posted “I introduced bipartisan legislation with RepBillFoster to combat the growing threat of identity fraud and theft. The Stop Identity Fraud and Identity Theft Act strengthens digital identity security, protects taxpayers and consumers, and supports states as they seek to develop additional identity verification methods.”

• Rep. Bill Foster (D-IL) posted “I am proud to introduce this bipartisan legislation with Congressman PeteSessions to protect Americans’ personal information. It is important that Congress responds to the growing wave of identity theft and fraud by giving states the tools to strengthen their digital identity infrastructure.”

• Sen. Richard Blumenthal (D-CT) posted “Profligate Big Tech must bear the societal costs of its skyrocketing AI spending—rising costs of electricity, water, construction, & much more. Companies not consumers should pay. Bipartisan legislation must impose accountability. I’m working on it.”

• Sen. Chris Murphy (D-CT) posted “The AI industry is driving up our electricity prices and ruining our landscapes with these huge data centers not to cure cancer but to do this.”

• Murphy also posted “Twitter’s AI bot is trained with many disturbing instructions like: ‘You’re always a little horny and aren’t afraid to go full Literotica.’ This is what the AI industry is building. It turns out they aren’t curing cancer or solving our energy crisis.”

• Sen. Ed Markey (D-MA) posted “Anthropic has announced that Claude will remain ad-free. I’m glad to see AnthropicAI agrees that ads in AI chatbots can pose serious risks to its users. That’s why I opened an investigation into AI chatbots’ advertising plans. Companies must put consumers first.”

• Sen. Tom Cotton (R-AR) posted “If students from Communist China want to study at our colleges and universities they should be studying the Federalist Papers, not biotechnology and AI.”

• Rep. Greg Landsman (D-OH) posted “With AI data centers, you’re either with big tech or our towns. We need every public official to be with us, not them. They’re fine. They have billions. Our towns need us.”

• Rep. Suzanne Bonamici (D-OR) posted “AI is reshaping the workforce faster than we can respond. I am developing a comprehensive, human-centered framework for AI that will strengthen teaching and learning, prepare workers, and address security and privacy concerns. And I’ve introduced the No Robot Bosses Act to keep humans in the hiring process.”

• Rep. Rob Menendez (D-NJ) posted “AI is being used more & more by hackers to carry out sophisticated cyberattacks on our devices & networks. That’s why I introduced legislation to make sure we’re also using AI to strengthen cybersecurity & protect Americans from foreign threats.”

• Sen. Maggie Hassan (D-NH) posted “I’m very concerned by reports that the maker of a children’s AI chat toy publicly exposed its users’ personal information. As children’s toys become more sophisticated, companies need to do everything they can to protect the safety and privacy of our kids.”

• Rep. Abe Hamadeh (R-AZ) posted “Congressman Hamadeh’s new legislation, the Improving Emerging Tech Opportunities for Veterans Act, aims to connect highly skilled veterans with high-tech jobs, especially as AZ-08 emerges as a hub for semiconductor manufacturing and AI innovation.”

• Hamadeh also posted “’So many people are scared of AI and new technology because they see it as replacing jobs. But I think this is an ability to give veterans high-paying jobs, especially when it’s these foreign direct investments coming into the United States.’”

• Rep. Tim Sheehy (D-MT) posted “A sober take on AI, which is a tool, not a master. AI will create jobs we haven’t even imagined yet. Let’s not let the hysteria drive the narrative.”

What I’m Reading This Week

• Global AI Law and Policy Tracker: Highlights and Takeaways, Will Simpson, IAPP.

• Why AI adoption keeps outrunning governance — and what to do about it, Pat Brans, Computerworld.

• Move Fast, but Obey the Rules: China’s Vision for Dominating A.I., Meaghan Tobin and Xinyun Wu, The New York Times.

• Inside Musk’s Bet to Hook Users That Turned Grok into a Porn Generator, The Washington Post.

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

House Republican leadership is reportedly hosting a series of meetings with rank-and-file Republicans and key Democrats to advance their goal of passing a federal AI regulatory framework by the end of 2026.

Legislation was introduced to use AI to identify outdated regulations for elimination, while the executive branch begins testing AI to write new regulations.

President Trump’s decision to allow China to purchase advanced chips continues to attract concern from lawmakers on both sides of the aisle.

Read more below

Congress

Hearings

Last week

• On January 28, the Senate Armed Services Committee Cybersecurity Subcommittee held a hearing on the Defense Department’s cyber force generation plan and the associated implementation plan.

This week

• On February 3, the House Education and the Workforce Health, Employment, Labor, and Pensions Subcommittee holds a hearing on “Building an AI-Ready America: Adopting AI at Work.”

• On February 4, the Senate Commerce, Science and Transportation Committee holds a hearing on “Hit the Road, Mac: The Future of Self-Driving Cars.”

Legislation

• Rep. Mike Lawler (R-NY) introduced the Children Harmed by AI Technology (CHAT) Act, to protect minors from the risks posed by AI companion chatbots. Sen. Jon Husted (R-OH) introduced companion legislation in the Senate. (Text)

• Rep. Blake Moore (R-UT) introduced the Leveraging Artificial Intelligence to Streamline the Code of Federal Regulations Act to use AI to identify outdated regulations for elimination. Sen. Jon Husted (R-OH) introduced companion legislation in the Senate. (Text)

Correspondence

• Select Committee on China Chair John Moolenaar (R-MI) sent a letter to Secretary of Commerce Howard Lutnick detailing how Nvidia products were used by CCP-backed AI company DeepSeek and then procured by the People’s Liberation Army (PLA) and recommending clarification of H200 restrictions to include measures that would prevent prohibited end users from gaining similar access and tighter restrictions on PRC-origin AI models to address the risks posed by using AI models developed by PRC entities such as DeepSeek, Alibaba, and Tencent in the United States. (Letter)

• Sens. Jack Reed (D-RI), Sheldon Whitehouse (D-RI), Peter Welch (D-VT), Ed Markey (D-MA), Richard Blumenthal (D-CT), and Jeanne Shaheen (D-NH) sent a letter to ISO New England (ISO-NE) about how grid operator plans to protect residential ratepayers from data center-driven price increases. (Letter)

• Sens. Mark Warner (D-VA) and Tim Kaine (D-VA) sent a letter to the Department of Homeland Security’s Inspector General Joseph Cuffari urging an investigation into current and future DHS procurements that enable the collection, retention, and analysis of sensitive personal data. (Letter)

Publications, Meetings, and Events

• Sen. Tom Cotton (R-AR) published an op-ed entitled “The DATA Act Will Unleash A New Energy Era,” saying “My legislation will allow large facilities to build and operate fully isolated, off-grid power systems without the burdensome regulatory requirements that apply to traditional utilities. For Arkansas, the DATA Act offers a direct benefit: by allowing large facilities—such as data centers and advanced manufacturers—to build fully off-grid power systems, the state can attract new industries without forcing expensive grid upgrades that would otherwise show up on Arkansans’ utility bills.” (Op-ed)

Trump Administration

Department of Health and Human Services (HHS)

• HHS published a request for information (RFI) seeking input from the public on the potential adoption of diagnostic imaging technical standards and certification criteria for health information technology under the ONC Health IT Certification Program to better enable the access, exchange, and use of diagnostic images by health care providers and patients. The comment period closes on March 16. (Federal Register)

U.S.-China Economic and Security Review Commission

• U.S.-China Economic and Security Review Commission holds a hearing on “India, China, and the Balance of Power in the Indo-Pacific” to consider economic and technology issues within India-China relations, including India’s efforts to build self-reliance in critical and emerging technology sectors like artificial intelligence, semiconductors and pharmaceutical supply chains. (USCC)

National Oceanic and Atmospheric Administration’s (NOAA)

• The Government Accountability Office published a report on “Weather Safety: Agencies Face Challenges Related to Multilingual Weather Alerts, and AI Project Needs Better Planning” recommending the National Weather Service develop an updated implementation plan for its AI language translation project. (Report)

Noteworthy Quotes and Events

ADMINISTRATION

Department of Transportation (DOT)

• On the use of AI to write federal transportation regulations, DOT general counsel Gregory Zerzan said, “We don’t need the perfect rule on XYZ. We don’t even need a very good rule on XYZ. We want good enough. We’re flooding the zone.” He also said, “It shouldn’t take you more than 20 minutes to get a draft rule out of Gemini.” (ProPublica)

Office of the National Cyber Director

• Alexandra Seymour, principal deputy assistant national cyber director for policy, said the Trump Administration will be “undertaking diplomacy efforts to promote American AI cybersecurity standards and norms, establishing industry best practices for secure AI deployment and harnessing the full potential of AI tools.” She added, “While AI is already helping industries enhance security and address the challenge of escalating cyberattacks, this administration will promote the rapid implementation of AI-enabled cyber defensive tools to detect, divert and deceive threat actors who continue targeting our vital systems and sectors on our federal systems. We must get our house in order. They need rapid modernization, and we’re working on policies to harden our networks, update our technologies and ensure we’re prepared for a post-quantum future.” (AIScoop)

Department of Defense

• U.S. Army posted “The U.S. Army is now an AI-first force. Guided by SecWar’s bold leadership, the USArmy team has integrated http://GenAI.mil in our daily battle rhythm, accelerating our innovation and readiness. The mission for the Army Team is to continue mastering this tool to unleash a new era of operational dominance.”

White House

• AI & Crypto Czar David Sacks posted “The policy debate over AI is overfitted to the social media wars. AI is a completely different form factor. The rise of AI assistants will make this clear.”

CONGRESS

• Sen. Josh Hawley (R-MO) said, “I think we’ve got a moral imperative to make sure that AI is actually good for people. I have no doubt that these companies are going to get filthy rich, but is it going to be good for children? Is it going to be good for parents? Is it going to be good for the American worker? I think we have a moral obligation to see that.” (Axios)

• On AI chatbots and child safety, Hawley said, “I couldn’t believe that this was actually happening. Talking to these parents, seeing the evidence of the chats, seeing the widespread nature of this, just convinced me, to my core, that we’ve got to do something here to protect kids.” (Axios)

• On energy demand, Hawley said, “This is a real thing for folks who already feel their bills are too high. The idea that some Silicon Valley company will come in and jack up utility prices — that’s not speculative.” (Axios)

• In floor remarks, Sen. Bernie Sanders (I-VT) said, “And when we talk about the decline and the standard of living in America, the fact that 60% of the people in our country today are struggling as we speak to put food on the table, we must understand that in our country right now Big Tech oligarchs are working overtime to become even wealthier by throwing American workers out on the street and replacing them with robots or artificial intelligence. Nobody knows exactly what the impact of A.I. and robotics will be, but there are some very sophisticated studies which suggest that tens of millions of jobs will be replaced by A.I. and robotics, and we are in no way prepared for that. And that is why I have called for a moratorium on new A.I. data centers until we make sure that the economic gains of these revolutionary technologies benefit the working families of this country and not just a handful of wealthy billionaires in Silicon Valley. A.I. and robotics are neither good nor bad.”

• On her proposal for a “tech NATO” coordinated body of democratic technology leaders to establish shared rules for emerging technologies, Sen. Maria Cantwell (D-WA) said, “I definitely think we need to use our might to counter China, and the best way to do that is to create an alliance with other smart technology countries. If you just took us, and Japan, and Europe and India and basically a few others and said, ‘Okay, we’re going to say these are the rules of the road for technology: You can’t have a government back door. You have to respect these IP rights. You have to do this.’ And the world should only buy from countries who meet these standards.” (Remarks)

• Ranking Member of the Committee on Homeland Security Bennie Thompson (D-MS) released a statement regarding news reports that Cybersecurity and Infrastructure Security Agency Acting Director Madhu Gottumukkala uploaded sensitive and nonpublic documents into the ChatGPT AI app, saying, “News reports that CISA Acting Director Gottumukkala uploaded FOUO information to ChatGPT follow reports that he failed a counterintelligence polygraph. At best, he’s in over his head, if not unfit to lead. Secretary Noem and her minions are taking a wrecking ball to DHS’s credibility and must be stopped.” (Press release)

• Sen. Dave McCormick (R-PA) posted “Artificial Intelligence is the future — and America must lead. Proud of the USArmy’s push to strengthen their readiness and technological edge through AI”

• Rep. Blake Moore (R-UT) posted “Over the past 50 years, the Code of Federal Regulations has grown to nearly 200,000 pages, including duplicative or outdated rules. These create unnecessary burdens for individuals and businesses. That’s why I introduced the Leveraging Artificial Intelligence to Streamline the Code of Federal Regulations Act of 2026, a modern approach to eliminating outdated regulations.”

• Sen. Tom Cotton (R-AR) posted “American AI dominance shouldn’t mean higher energy prices for Arkansans. My DATA Act will modernize power regulations to keep energy prices down.”

• On his CHAT Act, Rep. Mike Lawler (R-NY) said, “We have a responsibility to make sure our children are protected, not exploited, by AI technology. Parents across the country deserve peace of mind knowing that AI platforms interacting with their kids have real safeguards in place, including age verification, parental consent, and clear boundaries. The CHAT Act puts families first and ensures innovation never comes at the expense of our children’s safety.” (Press release)

• Rep. Josh Brecheen (R-OK) posted “Congress must work to Constitutionally ensure that AI is properly monitored against vulnerabilities.”

• Rep. Mary Gay Scanlon (D-PA) posted “The median age of a first-time home buyer in the US is 40. At this rate, young Americans don’t even have a shot at owning a home. The American Dream gets crushed when a President prioritizes building AI data centers for billionaires over housing for Americans.”

• Rep. Greg Landsman (D-OH) posted “Families and small businesses shouldn’t see their energy bills go up to subsidize massive AI data centers. In states like Ohio, where data centers are rapidly expanding, there has to be a plan that protects ratepayers first.”

• Sen. Marsha Blackburn (R-TN) posted “In Tennessee, AI is powering breakthroughs in health care, manufacturing, nuclear energy, and more. But without strong federal safeguards, it also threatens our children, creators, and communities. That’s why I’m introducing the TRUMP AMERICA AI Act.”

• Sen. Chris Coons (D-DE) posted “Good. If you build an AI that makes child pornography on demand for anyone in the world to use, you should be held accountable. I’m glad the EU is stepping up and investigating if the Trump administration won’t.”

• Rep. Mike Lawler (R-NY) posted “We have a responsibility to make sure our children are protected, not exploited, by AI technology. Parents across the country deserve peace of mind knowing that AI platforms interacting with their kids have real safeguards in place, including age verification, parental consent, and clear boundaries. The CHAT Act puts families first and ensures innovation never comes at the expense of our children’s safety.”

• Landsman also posted “AI is being used to make healthcare decisions — and no one has been told how it works. They need to fully disclose everything. States didn’t volunteer for this program. Providers didn’t volunteer. Patients didn’t volunteer.”

• Rep. Jahana Hayes (D-CT) posted “As a teacher, I recognize the challenges of incorporating new technology into the classroom. While AI is rapidly advancing, we must thoughtfully consider how to implement it in schools to ensure that educators can focus on the strategies that have been proven to promote academic success.”

• Rep. Pat Fallon (R-TX) posted “Biden’s weak foreign policy let our adversaries run wild -- allowing China to surge ahead in AI. President Trump is changing this with massive investment in chips, more secure supply chains, and strong alliances to ensure long-term US leadership. No more playing catch up.”

What I’m Reading This Week

• Vying for Quantum Supremacy U.S.-China Competition in Quantum Technologies, Joseph Federici, U.S.-China Economic and Security Review Commission.

• From Innovation to Impact: AI Adoption in U.S. Financial Services, FinRegLab.

• DeepSeek Was a Warning Shot. China is Building Its Next Surprise, Washington Post.

• AI Risks from Non-State Actors, Kyle Chan, Michael E. O’Hanlon, Qi Haotian, and Zheng Lefeng, Brookings.

• America’s AI Regulatory Patchwork is Crushing Startups and Helping China, James Richardson and Eric Tanenblatt, Fortune.

• The Adolescence of Technology, Dario Amodei, darioamodei.com.

• Geopolitics in the Age of Artificial Intelligence, Jake Sullivan and Tal Feldman, Foreign Affairs.

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