April 20: This week in AI federal policy
DC/ai Decoded: A weekly newsletter on developments in artificial intelligence and quantum federal policy
This week decoded
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
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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.
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