March 30: This week in AI federal policy
DC/ai Decoded: A weekly newsletter on developments in artificial intelligence and quantum federal policy
This week decoded
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.
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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