December 15: This week in AI federal policy

DC/ai Decoded: A weekly newsletter on developments in AI federal policy

This week decoded

President Trump issued an executive order to “protect American AI innovation from an inconsistent and costly compliance regime resulting from varying State laws.” The President also announced that the United States will allow NVIDIA to ship its advanced H200 semiconductors to approved customers in China. The Administration signed a declaration with Singapore, Australia, Japan, South Korea and Israel to counter China’s control of critical minerals and power in AI and other emerging technologies.

House Democratic Leader Hakeem Jeffries announced the launch of a new House Democratic Commission on AI and the Innovation Economy.

Read more below

Congress

Hearings

Last week

• On December 9, the Senate Judiciary Intellectual Property Subcommittee held a hearing on Balancing the Interests of Local Radio, Songwriters, and Performers in the Digital Age.

• On December 10, the House Financial Services Committee held a hearing on From Principles to Policy: Enabling 21st Century AI Innovation in Financial Services.

• On December 10, the House Science, Space and Technology Committee held a hearing on the Genesis Mission: Prioritizing American Science and Technology Leadership.

This week

• On December 17, the House Homeland Security holds a Cybersecurity and Infrastructure Protection Subcommittee and Oversight, Investigations and Accountability Subcommittee holds a hearing following a report about an AI-assisted, partially autonomous cyberattack against the U.S. company Anthropic by a state-sponsored cyber actor backed by China.

• On December 17, the House Energy and Commerce Oversight and Investigations Subcommittee holds a hearing on Examining Biosecurity at the Intersection of AI and Biology.

• On December 18, the House Science, Space and Technology Investigations and Oversight Subcommittee holds a hearing on Research Security: Examining the Implementation of the CHIPS (Creating Helpful Incentives to Produce Semiconductors) and Science Act and NSPM-33 (National Security Presidential Memorandum 33).

Legislation

• Reps. Greg Landsman (D-OH) and Don Beyer (D-VA) introduced the Protecting Families from AI Data Center Energy Costs Act requiring the Federal Energy Regulatory Commission (FERC) to hold a conference with major stakeholders on how to protect residents from increased costs. FERC also will be required to submit a report with recommendations and best practices to ensure energy costs associated with AI data centers are not passed onto communities. (Text)

• Reps. Sara Jacobs (D-CA), Jay Obernolte (R-CA), Pat Fallon (R-TX), Shontel Brown (D-OH), and Sens. Andy Kim (D-NJ) and Jon Husted (R-OH) introduced the AI Talent Act to modernize federal hiring for AI and other high-demand technical roles by creating specialized talent teams, enabling skills-based hiring, and providing shared tools that help agencies identify and onboard qualified candidates faster. (Press release)

• Sen. John Cornyn (R-TX) introduced the Growing University AI for Defense (GUARD) Act to codify a portion of President Trump’s AI Action Plan and enable the Department of War (DoW) to establish and lead a National Security and Defense AI Institute to advance defense innovation, workforce development, and AI readiness. (Press release)

• Reps. Bill Foster (D-IL) and Pete Sessions (R-TX) introduced the Responsible and Ethical AI Labeling (REAL) Act require federal agencies and officers to require labeling on any AI-generated images or videos published by an agency, or any AI-generated text that is not reviewed by a human prior to publication. (Press release)

• Reps. Emanuel Cleaver (D-MO), LaMonica McIver (D-NJ), John Larson (D-CT), Dan Goldman (D-NY), and Del. Eleanor Holmes Norton (D-DC) introduced a bill to promote a 21st century workforce, authorize grants to support emerging and advanced technology education, and support training and quality employment for workers in industries most impacted by artificial intelligence. (Text)

Correspondence

• Sens. Maggie Hassan (D-NH) and Josh Hawley (R-MO) sent letters to OpenAI, Anthropic, Meta, Google, Microsoft, xAI, and Perplexity AI requesting information about the steps the companies are taking to prevent scammers from using their services to steal from Americans. (Letter)

• House Committee on Agriculture Ranking Member Angie Craig sent a letter to Instacart requesting information about reporting that the company used customers’ sensitive personal data and artificial intelligence to inflate grocery bills and charge different prices for the same products based on their ability to pay. (Letter)

• Sens. Brian Schatz (D-HI), Katie Britt (R-AL), James Lankford (R-OK) and Chris Coons (D-DE) sent letters to OpenAI, Microsoft, Google, Anthropic, Meta, Luka, Character.AI, and xAI, requesting they improve transparency around the capabilities of their models and the risks they pose to users. (Letters)

Publications, Meetings, and Events

• Sen. Amy Klobuchar (D-MN) published an op-ed in the New York Times entitled, “State A.I. Laws Keep Us Safe. Trump’s Next Move Could Upend That.” In the op-ed, she says, “Once we actually have federal standards passed by Congress, it should be for Congress to decide whether to pre-empt state laws or allow them to go further. And as A.I. continues to evolve, there will always be new applications of the technology that spur states to act before the federal government does. That is something we should encourage — it is how our laboratories of democracy were intended to function. But we can’t supersede state protections until we have strong, enforceable federal standards in place. So A.I. companies should join us in putting meaningful safeguards spearheaded by Congress in place at the federal level — and stop pretending that in the meantime, state standards are too much of a burden to bear. After all, how can you expect us to believe you’re on the precipice of creating groundbreaking superintelligence if you can’t manage to comply with a handful of state laws?” (Op-ed)

• House Democratic Leader Hakeem Jeffries announced the launch of a new House Democratic Commission on AI and the Innovation Economy that will convene throughout 2026. The commission will develop policy expertise in partnership with the innovation community, relevant stakeholders and committees of jurisdiction. Reps. Ted Lieu (D-CA), Josh Gottheimer (D-NJ) and Valerie Foushee (D-NC) will serve as Co-Chairs. (Press release)

• Rep. Valerie Foushee (D-NC), Co-Chair of the House Democrat Commission on AI and Chair of the New Democrat Coalition’s Task Force on Artificial Intelligence, released a report and launched an investigation emphasizing the need for transparency and greater clarity regarding the impact of artificial intelligence on American jobs. Foushee sent letters requesting information on job cuts to Amazon, Salesforce, Meta, Verizon, Microsoft, IBM, Google, Accenture, HP, Intel, Target, UPS, Synopsys, Lenovo. (Press release)(Report)(Letter)

Trump Administration

White House

• President Donald Trump issued an executive order to “protect American AI innovation from an inconsistent and costly compliance regime resulting from varying State laws.” (Executive Order)(Fact sheet)

• President Trump announced that he authorized Nvidia to sell its H200 AI chip in China in exchange for taking 25 percent of the revenue.

• Assistant to the President and OSTP Director Michael Kratsios chaired the third White House Artificial Intelligence Education Task Force meeting with cabinet officials, educators, and parents to discuss AI’s impact in the classroom. The Task Force meeting aimed to connect Administration officials with parents and educators to discuss the opportunities and challenges presented by AI in K-12 education. (Press release)

State Department

• The Trump Administration announced the formation of a coalition to counter China’s control of critical minerals and power in AI and other emerging technologies. Singapore, Australia, Japan, South Korea and Israel joined the US in signing the Pax Silica Declaration. (Pax Silica)

Treasury Department

• In his introduction letter to the Financial Stability Oversight Council annual report, Secretary Scott Bessent said that FSOC would shift its focus to removing red tape in areas like artificial intelligence. The letter details the creation of a “new artificial intelligence (AI) working group will explore opportunities for AI to promote the resilience of the financial system while also monitoring for potential risks to financial stability that might be posed by the adoption of AI. The working group will identify potential high-value AI use cases that Council member agencies can adapt to streamline their own approaches to AI integration, with the aim of improving the efficiency and efficacy of the agencies’ regulation and supervision. The working group will also provide a forum for public-private dialogue to identify regulatory impediments to the responsible adoption of AI technology by entities in the financial services sector.” (Report)

National Institute of Standards and Technology (NIST)

• On January 21-22, the NIST Information Security and Privacy Advisory Board will meet to discuss NIST’s Secure Software Development Framework and agentic artificial intelligence security.

Noteworthy Quotes and Events

ADMINISTRATION

• President Trump posted, “I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security. President Xi responded positively! 25% will be paid to the United States of America. This policy will support American Jo bs, strengthen U.S. manufacturing, and benefit American Taxpayers. The Biden Administration forced our Great Companies to spend BILLIONS OF DOLLARS building degraded’ products that nobody wanted, a terrible idea that slowed Innovation, and hurt the American Worker. Tat Era is OVER! We will protect National Security, create American Jobs, and keep America’s lead in AI. NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal. My Administration will always put America FIRST. The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American companies. MAKE AMERICAN GREAT AGAIN!”

CONGRESS

AI Executive Order

• Senate Committee on Commerce, Science and Transportation Ranking Member Maria Cantwell (D-WA) issued a statement saying, “This executive order’s overly broad preemption threatens states with lawsuits and funding cuts for protecting their residents from AI-powered frauds, scams, and deepfakes—leaving American consumers without any protection. Let’s get it right and pass a bipartisan national AI framework that both leads on innovation and protects consumers.” (Press release)

• Rep. Don Beyer (D-VA), co-chair of the bipartisan Congressional Artificial Intelligence Caucus, issued a statement saying, “President Trump’s AI order is an attempt to kill responsible safety reforms passed by states, which would create a lawless Wild West environment for AI companies that puts Americans at risk. This is a terrible idea. Congress has been slow to respond to the AI revolution and in the absence of a strong federal response, states are wisely taking the lead to create guardrails and protect the public. Trump’s attempt to undo this progress without providing any federal regulatory protections would be extremely harmful. A moratorium on state legislation will reduce the likelihood of Congressional action as well, which is the unstated goal of this Executive Order. Moreover, his attempt to block state laws through federal coercion likely violates the 10th Amendment, and as such constitutes an unconstitutional abuse of power. The first attempt to pass this harmful AI moratorium policy in the One Big Beautiful Bill failed because of robust bipartisan opposition. Trump is using this executive order to bypass this opposition in both chambers of Congress. Hostility on Capitol Hill to this damaging and irresponsible policy remains strong, and I am actively exploring legislative options with members in both chambers and both parties in response to this order.” (Press release)

• Beyer also posted “A moratorium on state AI laws already failed twice with opposition in both chambers of Congress. Now, Trump is bypassing Congress to create a lawless Wild West for AI companies. It’s a bad idea - and I’m actively exploring legislative options in response to this order.”

• New Democrat Coalition Artificial Intelligence Task Force Chair Valerie Foushee (D-NC) issued a statement saying, “This flawed, harmful, and unconstitutional order silences communities, tramples over states’ rights, and represents an overreach of executive authority without any benefit to everyday Americans. New Dems agree that every American deserves an AI future that protects their rights, privacy, and jobs — yet Trump and Republicans have stalled on enacting real AI protections and now want to bulldoze state-level safeguards without any serious national strategy. This order only creates more confusion and risk for the American people, while threatening to hold billions in critical broadband development funds for rural and underserved communities hostage unless states comply with these unconstitutional demands. We welcome the Administration and Congressional Republicans to engage in bipartisan efforts to create a federal regulatory framework that harnesses the potential of AI and protects the rights and privacy of all Americans.” (Press release)

• Sen. Alex Padilla (D-CA) issued a statement saying, “No place in America knows the promise of artificial intelligence technologies better than California. It’s why we are world leaders in A.I. innovation and industry and why we have been able to work collaboratively to adopt some of the strongest consumer protections in the country. But with today’s executive order, the Trump Administration is attacking state leadership and basic safeguards in one fell swoop. To truly unleash innovation in artificial intelligence, the Trump Administration should instead be bolstering federal agencies, investing in research universities, and growing our talent pipeline — both American and foreign born. The Trump Administration may refuse to protect consumers or invest in innovation, but make no mistake: California will continue to lead the A.I. revolution.” (Press release)

• Sen. Edward Markey (D-MA) said, “I will continue to lead a bipartisan coalition to fight any attempt to strip states of their right to protect their citizens. We defeated the AI moratorium last summer, 99-1. This week, we defeated Big Tech’s lobbying to attach the moratorium to the defense bill. We’ll defeat Trump’s Executive Order, too.” (Press release)

• House Majority Leader Steve Scalise (R-LA) posted “Thank you, President Trump. We are in a race against China to lead the world in AI. To win, innovators need certainty and predictability, not a patchwork of state laws. One set of rules will support innovation while also protecting the American people.”

• Sen. Patty Murray (D-WA) posted “Trump did an end run around Congress to try to BAN states from regulating AI by threatening lawsuits or lost funding. No matter how much tech billionaires donate to Trump, he does not have the authority to make laws—Congress does. I’ll fight back against this corrupt move.”

• Rep. Frank Pallone (D-NJ) posted “We should be working together to foster innovation and protect Americans’ privacy and safety—not punishing states for trying to protect people from the harms of AI. Someone should probably tell POTUS that executive orders aren’t magic wands that suddenly erase laws on the books. His AI executive order is both unlawful and counterproductive.”

• Rep. Doris Matsui (D-CA) issued a statement saying, “After Congress repeatedly rejected this idea on a bipartisan basis, Donald Trump has now chosen to try and force it through unilaterally. Trump’s order threatens states enacting responsible safeguards with costly, wasteful federal lawsuits and attempts to hold hostage the broadband funding Congress specifically authorized for our communities. This is illegal federal coercion, plain and simple. With no federal AI framework in place, states like California have stepped up with common-sense safeguards that protect the public while keeping innovation and competition strong. These measures build trust and keep people safe. This order would block states from responding to real, evolving risks. At the same time, it’s a gift to big tech—stripping away accountability when AI is becoming more powerful and deeply embedded in people’s lives. There’s a reason Congress dismissed this approach—it’s bad policy. I’ll keep pushing back against this overreach and defend states’ ability to put meaningful protections in place.” (Press release)

• Rep. Zoe Lofgren (D-CA) said, “This executive order is not lawful. If the President really wants to address contradictory state laws, he can work with Congress on both sides of the aisle to debate and pass a federal standard. Unfortunately, the Republicans in Congress and the White House have been missing in action on creating AI legislation in Congress. I call on Speaker Johnson to make Congress relevant again and engage in a bipartisan conversation on AI governance.”

• Rep. Summer Lee (D-PA) posted “AI regulation has bipartisan support to protect our communities, neighbors, and jobs, but Trump is trying to ban states from doing so. If he wants a national framework, lets start with my AI Civil Rights Act with RepYvetteClarke and SenMarkey to make sure AI cannot discriminate against anyone.”

• Rep. Ayanna Pressley (D-MA) posted “AI is everywhere—and without civil rights protections, it can worsen the discrimination our communities already face. That’s why Congress should pass my AI Civil Rights Act with SenMarkey and RepYvetteClarke. We cannot allow AI innovation without AI protections.”

• Rep. Gabe Amo (D-RI) posted “Trump’s siding with the demands of big tech and billionaires that will profit over the people who could get hurt. His AI executive order will stop actions to keep Americans safe.”

• House Energy and Commerce Committee posted “President Trump is absolutely right that we need one national AI standard, not a patchwork of state laws. We need to understand how burdensome state regulations undermine America’s greatest innovators and cede leadership to China. This EO will help to further that discussion.”

• Rep. Deborah Ross (D-NC) posted “This is a clear overreach of Trump’s executive power and a harmful decision. States are stepping up to enact necessary guardrails to protect people, especially women & children, from the dangers of AI, including stalking, deepfakes, and more.”

Trump Decision to Allow NVIDIA Sales to China

• In remarks on the Senate floor, Democratic Leader Chuck Schumer (D-NY) spoke about President Trump’s decision to allow the export of advanced Nvidia H200 AI chips to China, “Donald Trump is just selling out America for his own ego and his own gain. That’s what he’s doing on chips. Yesterday, Donald Trump announced he was giving the green light for Nvidia to send even more powerful AI chips to China, the H200, which are used to train AI models. Let’s be clear—you can’t claim to be ‘tough on China’ if you willingly sell them some of the most advanced chips in the world so they can use it to strengthen their military. People on both sides of the aisle are aghast that Trump would do this. Does he think it through? Does he care about what will happen tomorrow or just his little announcement today? Donald Trump’s announcement selling these chips to China is dangerous. They’ll use them to strengthen their military and their technological edge, all at the expense of American national security. Even Donald Trump’s own Department of Justice warned about the dangers of these chips making their way to China. Here is what they said, the Department of Justice, when they acted against a chip smuggling operation yesterday. This is Trump’s Justice Department: ‘These chips are the building blocks of AI superiority and are integral to modern military applications. The country that controls these chips will control AI technology; the country that controls AI technology will control the future.’ Donald Trump, you are letting China control our future. You’re selling us out, all so you can have a little one-day ego gain by making some kind of announcement which no one is going to believe anyway. Donald Trump should listen to his own DOJ about the danger of giving China these chips before cutting stupid deals that cost America dearly in the years to come. But, unfortunately, this is textbook Donald Trump. He is so desperate to get a deal with President Xi, so he can get that photo-op, that he will sell out America’s long-term security for a short-term political gain. This sellout is not only going to hurt us, it’s going to hurt our children and our grandchildren as China begins to dominate the world with AI. And then he comes up with this tawdry deal, where he says Nvidia makes money and the U.S. makes money. But the short-term gain of dollars from selling these chips is so much outweighed by the danger when China takes the lead on AI using the chips that were made in America and sold to them by Donald Trump. So, I ask one question: where is the outrage from my Republican colleagues? Are they just going to sit by while Donald Trump sells America out to Xi Jinping? That’s what’s going on here. This chips deal is terrible. It will cost our national security dearly. And the president must reverse course before it’s too late.” (Press release)

• Senate Foreign Relations Committee Ranking Member Jeanne Shaheen (D-NH), Senate Appropriations Committee Ranking Member Chris Coons (D-DE), Senate Armed Services Committee Ranking Member Jack Reed (D-RI), Senate Banking Committee Ranking Member Elizabeth Warren (D-MA), and Sens. Brian Schatz (D-HI), Andy Kim (D-NJ), Michael Bennet (D-CO), and Elissa Slotkin (D-MI) issued a statement in response to the Trump Administration’s decision to allow NVIDIA to sell its H200 AI chips to China, saying, “The Trump administration’s announcement that it will allow the export of advanced H200 AI chips to China is a colossal economic and national security failure. The H200s are vastly more capable than anything China can make and gifting them to Beijing would squander America’s primary advantage in the AI race. Access to these chips would give China’s military transformational technology to make its weapons more lethal, carry out more effective cyberattacks against American businesses and critical infrastructure, and strengthen their economic and manufacturing sector. Chinese AI giant DeepSeek said as recently as last week that the lack of access to advanced American-designed AI chips is the single biggest impediment to its ability to compete with U.S. AI companies. With this decision, President Trump is poised to remove that barrier. Senate Democrats and Republicans both know that the 21st century will be defined by whether the leading AI systems are built on values of free societies and free markets or the repressive, authoritarian values of the Chinese Communist Party. The Trump administration clearly doesn’t grasp the urgency of this contest. President Trump must reverse course and recommit to preserving American dominance in AI.” (Press release)

• Sen. Elizabeth Warren (D-MA) said, “After his backroom meeting with Donald Trump and his company’s donation to the Trump ballroom, CEO Jensen Huang got his wish to sell the most powerful AI chip we’ve ever sold to China. This risks turbocharging China’s bid for technological and military dominance and undermining U.S. economic and national security. Congress must act swiftly. It should pass bipartisan legislation that reins in this Administration, and it should require Mr. Huang to testify publicly and under oath.” (Press release)

• Sen. Brian Schatz (D-HI) released a statement saying, “Embracing the amazing possibilities of AI can’t come at the cost of leaving Americans vulnerable to its profound risks, which is exactly what this executive order does. Preventing states from enacting common-sense regulation that protects people from the very real harms of AI is absurd and dangerous. Congress has a responsibility to get this technology right – and quickly – but states must be allowed to act in the public interest in the meantime. I’ll be working with my colleagues to introduce a full repeal of this order in the coming days.” (Press release)

• Rep. Brad Sherman (D-CA) posted “President DonaldTrump’s decision to allow NVIDIA to sell H200 chips to China puts America last. U.S. companies should not be allowed to hand over to China the very technology it needs to beat America in the AI race – especially when we know that China won’t put any safeguards on AI technology.”

House Financial Services Hearing on AI in Financial Services

• Chairman French Hill (R-AR) said, “AI has shown its transformative potential to reshape how financial institutions operate, from enhancing analysis, to managing risk, mitigating fraud, and, importantly, enhancing customer service. However, as with any innovation, risks give rise to new challenges. ... To move forward, we must embrace and adapt to innovation. … Identifying gaps and obstacles in our regulatory frameworks will help Congress create an AI landscape where innovation can flourish without unnecessary barriers, while ensuring robust consumer protections, and risk-based, technology-neutral regulation.”

• Ranking Member Maxine Waters (D-CA) said, “AI is already embedding in the lives of millions of Americans, and we have a duty to ensure that it benefits society, not harms it. Unfortunately, Republicans have been complicit as Donald Trump by passes Congress directs federal agencies to deploy biased AI with no safeguards and now issuing an executive order that seeks to undermine all state oversight. Republicans in Congress fail to acknowledge that despite all the benefits that AI may bring, it also poses challenges that demand our full attention. We’re already seeing AI systems that hurt children, spread hate and discrimination and amplify systemic risk in the financial system.”

• Subcommittee on Digital Assets, Financial Technology, and Artificial intelligence Chair Bryan Steil (R-WI) said, “Earlier this year, Mr. Chairman Hill and I introduced the bipartisan Unleashing AI Innovation in Financial Services Act, which enables regulatory sandboxes at the federal financial agencies that are targeted in size and scope. These sandboxes, they have a handful of things. They have to be approved and overseen by federal regulators. They require compliance strategies and risk management … they must not impose systemic or national security risks. … Additionally, fraud and unsafe and unsound practices will remain prohibited under the sandboxes. … the sandboxes provide a more secure environment to experiment with AI, enabling innovation with built in guardrails and federal oversight.”

• Subcommittee on Oversight and Investigations Chair Dan Meuser (R-PA) said, “… Many of us, the leadership of this Committee, as well as the Trump Administration, is committed to unleashing AI’s full potential, so the United States wins the AI race with investment and energy dominance to support the AI infrastructure. My home state of Pennsylvania is doing everything we can to draw in as much AI infrastructure as possible. However, it brings risks that we’re talking about and exposing here, which are happening now, and we want to mitigate for the future. They definitely include fraud, scams, profiling, and seem to be growing more sophisticated. AI is proving to be an incredibly strong tool for detecting and shutting down these very threats but as well creating them.”

• Subcommittee on Capital Markets Chair Ann Wagner (R-MO) said, “NASDAQ was an important player in the creation of electronic trading. And, while rapid growth over the last few years in generative artificial intelligence, or AI, has brought this technology center stage for the general public, NASDAQ has been quietly using AI for years and years to fight fraud and increase market efficiency, liquidity, and transparency.

• Rep. William Timmons (R-SC) said, “If the United States is going to remain a global leader in innovation, we must adopt clear and harmonized rules that support technological progress while also protecting consumers and preserving market integrity. Industry leaders are increasingly concerned about the growing patchwork of state laws related to artificial intelligence. These state requirements often conflict with one another, whether in the form of impact assessments, documentation, standards, or definitions of high-risk systems for firms that operate across the country. These inconsistencies can create significant operational challenges, especially when artificial intelligence supports critical functions such as fraud detection and cyber defense. Without a unified federal framework that replaces duplicative and contradictory state rules, we risk higher compliance costs, slower innovation, and weaker protection for consumers.”

• In Q&A, Subcommittee on Digital Assets, Financial Technology, and Artificial intelligence Ranking Member Stephen Lynch (D-MA) asked, “…there’s much faith being put on AI but, but from this committee’s perspective, we’re seeing a small handful of AI firms that are really going to dominate, and so, so their products will be used by hundreds, maybe thousands of banks. So, they’re all be going to be operating off the same the same recommendations, the same algorithms. Doesn’t that create a concentration risk, if multiple banks, perhaps hundreds of banks, are actually making decisions based on the same recommendations?”

  • Simon Johnson, Professor of entrepreneurship in the MIT Sloan School of Management: “Yes, we’ll see concentration risk exactly there, where banks make decisions. But also what Dr. Foster was talking about, which was agentic AI on the on the part of investors. So investors will be coming into assets and leaving assets really very fast. They’ll be interacting with other AI. They’ll be gaming the system. This is all volatility, Congressman, and the only way to ensure the system against volatility is with more capital.”

• Rep. Marlin Stutzman (R-IN) said, “During the Biden Administration, AI innovation was viewed primarily as a threat to the American people. While President Trump has set the country back on track towards innovation and American AI dominance on the world stage, we cannot have Biden’s allies in anti-innovation states like California and Massachusetts setting the trend on overregulating AI.”

• Rep. Young Kim (R-CA) said, “Earlier this year, the state of California, where I’m from, they passed S.B. [53] that would unfairly regulate AI and impose heavy compliance burdens on companies. Now, states across the country are looking to this California model as a basis for developing their own artificial intelligence regulations. Therefore, there is an urgency for congress to establish a federal framework for AI. That’s why I support legislation like Chairman French Hill’s Unleashing AI Innovation in Financial Services Act that would create federal regulatory sandboxes.”

Miscellaneous

• At a Semafor event for Architects of the New Economy, Sen. Mark Warner (D-VA) said, “Ten years ago, if we put some guardrails on social media, we would have a hell of a lot healthier group of young people. The transformation brought about by social media is tiny compared to what AI will do.” (Semafor)

• At the same Semafor event, Sen. Josh Hawley (R-MO) said, “Our kids are not safe online, and there’s no amount of corporate profiteering that can justify that. Let’s be honest. Why hasn’t more social media legislation passed Congress? Money.” (Semafor)

• In remarks on the Senate floor, Sen. Elizabeth Warren (D-MA) said, “I am deeply concerned that Donald Trump will target the work at the Department of Justice in a cynical attempt to hide the truth from the American people. And in case Donald Trump directs his Department of Justice to take down the public evidence or to cover it up, I’m going to read into the Senate record exactly how senior law enforcement officials warned about the dangers of allowing these chips to power the development of cutting-edge technology in China.” (Press release)

• In a keynote speech at Stanford University’s AI & the Economy: Opportunities, Risks, and Policy for Shared Prosperity forum, Sen. Mark Kelly (D-AZ) said, “My goal with AI for America is to raise important questions about how the AI boom and its continued development can put workers at the forefront, strengthen our public infrastructure, protect the landscapes we cherish, benefit communities as it expands, protect users, and ensure that this new, exciting chapter benefits all Americans, not just a wealthy few.” (Press release)

• Rep. Pat Fallon (R-TX) posted “Our adversaries are rapidly advancing their AI capabilities while we tie our own hands with outdated hiring rules. The AI Talent act creates skill-based hiring, permanent positions, and shared talent pools so that our agencies can get the best minds through their doors and secure our lead in AI.”

• Sen. Bernie Sanders (I-VT) posted “Congratulations to the people of Chandler, AZ, who — despite a fierce lobbying campaign — defeated a massive AI data center that would have raised utility bills and drained scarce water. Oligarchs want working Americans to foot the bill while they profit. Not gonna happen!”

• Sen. Mark Kelly (D-AZ) posted “America’s workforce, infrastructure, and innovation built our leadership in tech and they will shape where AI takes us next. AI for America is my roadmap to make sure the AI boom benefits workers and communities, not just a handful of tech billionaires.”

• Sen. Katie Britt (R-AL) posted “There are too many heartbreaking stories with AI and social media harming children. Tech companies must be honest about the risks their platforms pose to children and take responsibility for the harm they cause. I will continue to hold Big Tech and AI accountable. Protecting our nation’s children must always be a priority.”

• Sen. James Lankford (R-OK) posted “Proud to join a bipartisan group of colleagues calling on AI companies to commit to real transparency and safety disclosures. As AI becomes more powerful, we need to protect children and vulnerable users. Innovation comes with responsibility.”

• Rep. Valerie Foushee (D-NC) posted “As Co-Chair of the HouseDemocrats Commission on AI, I am proud to share my AI Jobs Report and subsequent launch of an investigation into major companies to gain clarity on AI’s impact on American jobs. In 2025 alone, we’ve seen over 50,000 jobs lost which were specifically cited as AI-related reductions. Overall, total layoff announcements for 2025 have surpassed 1.1 million job cuts, the most since the 2020 pandemic. All this, despite major companies seeing record profits. Meanwhile, marginalized communities are feeling the brunt of Trump’s economy that prioritizes oligarchs over working families, and wondering what “Winning the AI Race” really means for them. The unemployment rate for Black Americans has increased to 7.5%, up from 5.7% a year ago. With many major companies seeing record profits despite this surge of layoffs, it’s time for Congress to step up. As the only Woman of Color on the House Democrat Commission on AI, I’m proud to lead this effort and will keep pushing for answers for the American people.”

• Rep. Nathaniel Moran (R-TX) posted “China’s expanding power grid is now an AI weapon. America leads in chips, but we need the energy infrastructure to match it, and we cannot allow China access to our chip technology. The stakes for America’s future are real. We must win in chips and in power.”

• House Judiciary Dems posted “Advances in AI have transformed the surveillance landscape. As more aspects of our lives move to phones, apps, and online platforms, both government and private companies now have an unprecedented ability to track and profile Americans. Congress must modernize privacy protections before these AI-driven analytic tools outpace the law.”

What I’m Reading This Week

• California Enacted AI Bills. Now Officials Must Define Them., Justin Curl, Lawfare.

• AI Backlash Could Shape US Election in 2028, The National.

• China’s AI Power Play: Cheap Electricity from World’s Biggest Grid, The Wall Street Journal.

About Zero One Strategies

Zero One Strategies is a boutique 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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