May 18: This week in AI federal policy

DC/ai Decoded: A weekly newsletter on developments in artificial intelligence and quantum federal policy

This week decoded

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.

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