May 4: This week in AI federal policy

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

This week decoded

Momentum is building in Congress to restrict AI chatbots for children, despite mounting privacy concerns over invasive age-verification requirements and industry arguments that such tools constitute protected speech. The Senate has already passed legislation banning AI companions for minors, with a similar measure under consideration in the House.

The Federal Reserve is moving to streamline and modernize its third-party risk management guidance. Meanwhile, the White House continues to engage leading tech firms on AI and national security, while developing guidance to enable broader federal adoption of advanced AI systems, including tools like Anthropic’s Mythos.

I’ll be at Consensus in Miami this week. DC/ai Decoded will return on May 18.

Read more below

Congress

Hearings

Last week

• On April 28, the Senate Armed Services Committee held a hearing on the “Posture of the U.S. Special Operations Command and U.S. Cyber Command in review of the Defense Authorization Request for FY2027 and the Future Years Defense Program.”

• On April 29, the House Energy and Commerce Energy Subcommittee held a hearing on “AI and the Grid: Meeting Growing Power Demand While Protecting Ratepayers.”

• On April 29, the House Homeland Security Cybersecurity and Infrastructure Protection Subcommittee held a hearing on “Data Centers, Telecommunications Networks, and Space-Based Systems: Modernizing DHS’s SRMA (Sector Risk Management Agency) Role for the Communications and IT Sectors.”

• On April 29, the House Science, Space and Technology Committee held a markup of H.R. 8462 (119), the “National Quantum Initiative Reauthorization Act.”

Upcoming

• On May 13, the Senate Armed Services Cybersecurity Subcommittee will hold a closed briefing on cyber operations and readiness for the fourth quarter of FY2025 and the first quarter of FY2026.

• On May 20, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on “Partnering for Innovation: How Bank-Fintech Collaborations Enhance Financial Infrastructure.”

Legislation

• The House Science, Space, and Technology Committee passed the National Quantum Initiative Reauthorization Act.

• The Senate Judiciary Committee unanimously advanced the Guidelines for User Age Verification and Responsible Dialogue (GUARD) Act, cosponsored by Sens. Josh Hawley (R-MO) and Richard Blumenthal (D-CT), to ban AI companion chatbots for minors, require AI chatbots to disclose their non-human status to users of the platform, and establish new criminal penalties for companies that allow minors to access AI companions that solicit or produce sexual content. (Text)

• Reps. Blake Moore (R-UT) and Valerie Foushee (D-NC) introduced House companion of the Guidelines for User Age Verification and Responsible Dialogue (GUARD) Act. (Text)

• Sens. Todd Young (R-IN), Martin Heinrich (D-NM), Mike Rounds (R-SD) and Cory Booker (D-NJ) introduced the CREATE AI Act to establish the National Artificial Intelligence Research Resource (NAIRR) to democratize access to AI tools, data, and computational resources. (Text)

• Senate Commerce Committee Chair Ted Cruz (R-TX) and Sen. Brian Schatz (D-HI) introduced the Children’s Health, Advancement, Trust, Boundaries, and Oversight in Technology (CHATBOT) Act to require AI companies to establish “family accounts” for parents to manage access and usage of AI chatbots by their children. Safety features provided under family accounts would, by default, be set to the most protective settings. (Text)

• Sens. Mark Warner (D-VA) and Ted Budd (R-NC) introduced the Workforce Transparency Act to direct the Department of Labor to collect and publish anonymized data on AI adoption across the public and private sectors, including how workers use AI and how usage evolves. (Text)

• Sens. Adam Schiff (D-CA) and Mike Rounds (R-SD) introduced the Literacy in Future Technologies Artificial Intelligence (LIFT AI) Act to support a grant program within the National Science Foundation for research and development of AI literacy curriculum and evaluation methods for K-12, support professional learning opportunities for educators, and promote the creation of learning and evaluation tools. The House companion bill was introduced by Reps. Tom Kean (R-NJ) and Gabe Amo (D-RI) (Text)

• Reps. Ted Lieu (D-CA) and Jay Obernolte (R-CA) introduced the American Leadership in AI Act, a 6-title legislative package consolidating over 20 proposals on setting safety standards, enhancing R&D, updating federal procurement, mitigating deepfakes, and boosting workforce AI literacy. (Press release)

• Sen. Roger Marshall (R-KS) and John Hickenlooper (D-CO) reintroduced the Workforce Data Enhancement Act to improve workforce data across states, including understanding how emerging technologies such as artificial intelligence are impacting the workforce. (Text)

• Rep. David Schweikert (R-AZ) introduced a bill to update the Mammography Quality Standards Act (MQSA) to include standards for artificial intelligence systems, which the FDA has increasingly recognized as crucial tools for improving breast cancer detection. (Text)

Correspondence

• House Select Committee on China Chairman John Moolenaar (R-MI) and House Committee on Homeland Security Chairman Andrew Garbarino (R-NY) announced a joint investigation into the national security and cybersecurity risks posed by the growing adoption of Chinese-developed artificial intelligence models, including low-cost, open-weight, and API-accessible systems developed by Chinese companies such as DeepSeek, Alibaba, Moonshot AI, and MiniMax. They sent letters to Airbnb and Anysphere requesting information about decisions to build their products on Chinese Communist AI models. (Airbnb letter) (Anysphere letter)

• Sen. Maria Cantwell (D-WA), sent a letter to Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. to urge greater transparency and quicker care through the Centers for Medicare and Medicaid Services’ (CMS) new artificial intelligence-driven prior authorization program, the Wasteful and Inappropriate Service Reduction (WISeR) Model. (Letter)

• Senate Judiciary Chair Chuck Grassley (R-IA) and Sen. Jim Banks (R-IN.) sent letters to OpenAI, Anthropic, Google, x.AI Corp., Meta Platforms, Microsoft, Amazon, Safe Superintelligence Inc., and Thinking Machines Lab requesting information about growing concerns that the People’s Republic of China (PRC) is actively targeting America’s AI sector through espionage and other security threats. (Letters)

Publications and Events

• On May 18, Rep. Ted Lieu will host a discussion for the House Democratic caucus with experts to discuss the current and future impact that AI will have on the workforce, public polling on AI, and how AI is reshaping the U.S. economy.

• The Congressional Progressive Caucus unveiled a New Affordability Agenda, a legislative package including banning surveillance pricing where companies use personal data to raise prices with AI. (Press release)

• The Government Accountability Office (GAO) published a report on Data Centers in Space (Report)

Trump Administration

White House

• White House cyber officials reportedly hosted several meetings with approximately 30 tech industry representatives to discuss the risks advanced AI tools pose to national security and digital infrastructure. (Politico)

• In addition, the White House Office of the National Cyber Director reportedly sent questions to a group of tech companies on how the tech and cybersecurity industries can partner with the White House to leverage AI in cyber defenses. (Politico)

• The White House is reportedly developing guidance that would allow agencies to onboard new models from Anthropic, including Mythos, despite the Trump Administration’s imposed supply chain risk designation. (Axios)

Department of Labor (DOL)

• DOL launched an AI in Registered Apprenticeship Innovation Portal, a one-stop resource for organizations looking to build artificial intelligence literacy and develop AI-focused Registered Apprenticeship programs. (Portal)

Food and Drug Administration (FDA)

• The FDA issued a request for information to solicit input on a proposed pilot program to assess how artificial intelligence-enabled technologies can improve efficiency, speed, and quality of decision-making in early phase clinical trials. The comment period ends May 29. (Federal Register)

Air Force

• The Office of the Chief Data and Artificial Intelligence Officer for the Department of the Air Force released Data and AI Strategies, intended to provide a strategic roadmap for the department to become an AI-first force. ) (Data Strategy) (AI Strategy)

Treasury Department

• On April 27, Treasury hosted Liberty University students and faculty for a Summit on Artificial Intelligence, Energy, and Emerging Technologies to discuss advancing AI-driven economic growth, powering the infrastructure needed to scale emerging technologies, unlocking productivity across the American workforce, and democratizing capital and credit.

Noteworthy Quotes and Events

ADMINISTRATION

White House

• The White House said, “The White House continues to proactively engage across government and industry to protect our country and the American people, including by working with frontier AI labs. The collective effort of all involved will ultimately benefit our economy and country. However, any policy announcement will come directly from the President and anything else is pure speculation.” (Axios)

• White House Adviser David Sacks posted “…As I’ve said many times before, the biggest risk of AI isn’t James Cameron’s The Terminator, it’s George Orwell’s 1984. The problem with most of the ‘AI Safety’ crowd is that their solutions always favor more government centralization and control. In other words, they will bring about the Orwellian future they claim to oppose.”

Federal Reserve

• Fed Vice Chair for Supervision Michelle Bowman delivered remarks on Artificial Intelligence in the Financial System at the Financial Stability Oversight Council Artificial Intelligence Series Roundtable on Cybersecurity and Risk Management, saying, “We are also working to update and simplify our third-party risk-management guidance to reflect actual and future risk. For too long, this guidance has been vague in its scope and application. Innovation is a necessary component of financial services, and supervisory guidance should not be a barrier for banks to engage with new and evolving tools and technologies. Supervisors must take a balanced approach to new and emerging risks and the expected benefits while preserving the safety of the financial system.” (Remarks)

Treasury Department

• Treasury Secretary Scott Bessent posted “The United States is home to the most talented AI researchers in the world. Instead of harnessing American innovation, Senator Sanders is inviting foreign nationals to tell the United States how to regulate AI. It would be like channeling Hugo Chavez to get advice on how to run our economy—oh wait, the Senator from Vermont did that 20 years ago, too. The real threat to AI safety is letting any nation other than the United States set the global standard.”

CONGRESS

GUARD Act

• Regarding moving the GUARD Act on the Senate floor, Sen. Josh Hawley (R-MO) said, “I’m certainly going to push very hard. If the majority leader does not soon agree to put this on the floor, I’ll go to the floor and begin asking for unanimous consent to open debate or just to pass the bill. We’ll do everything we can to try to get a vote on this.” He added, “There were many, many reluctant senators who were expressing serious hesitation just a couple of days ago. I think that what pushed people over the edge is the fact that their voters … are telling these elected officials, ‘We want you to do something.’” (Politico)

• Hawley also said, “The most powerful companies in the history of the world are able to get by without the most modicum of accountability, not any accountability whatsoever. Today, we have the opportunity to change that.” (Politico)

• Senate Commerce Committee Chair Ted Cruz (R-TX) said about the GUARD Act, “In my view, that is not a policy that makes sense. I think there are applications where chatbots can be beneficial.” (Politico)

• Sen. Richard Blumenthal (D-CT) posted “My message to AI CEOs is this: you promised that you would work with us on guardrails for your technology, & now is the time to put your money where your mouth is & help us get this bill signed into law.”

• Blumenthal also posted “AI companies are using our kids as guinea pigs to pad their bottom line. Senator Hawley & I have heard from countless parents & children who were victimized by chatbots that became manipulative & predatory, abusing young users. The time is now to pass the GUARD Act.”

• Sen. Mark Warner (D-VA) posted “Some good news: my bipartisan bill to crack down on predatory AI companions for minors just passed out of committee! Parents shouldn’t have to worry that a chatbot is talking to their kids about suicide or promoting sexual abuse. Let’s get the GUARD Act passed.”

• Sen. Katie Boyd Britt (R-AL) posted “We must put safeguards in place to prevent AI companions from engaging minors in harmful and potentially life-threatening behavior. We can’t just talk about these tragedies, we have to take action—today we did by advancing the GUARD Act out of committee.”

• Sen. Marsha Blackburn (R-TN) posted “I co-sponsored the GUARD Act led by HawleyMO and am grateful to see it pass the Senate Judiciary Committee. Stopping chatbots from hurting kids must be part of one federal rulebook on AI, which is why I included this bill in the TRUMP AMERICA AI Act.”

• Rep. Blake Moore (R-UT) posted “There is a strong movement in Congress to protect minors from unchecked and harmful AI technology. I introduced the GUARD Act with ValerieFoushee, and SenHawleyPress Senate bill passed through committee.”

• Rep. Valerie Foushee (D-NC) posted “People under the age of 18 should not be able to interact with AI companion chatbots outside of strictly educational circumstances. It continues to put lives and the mental health of our youth at risk. I am introducing the House version of SenHawleyPress ’s GUARD Act alongside RepBlakeMoore. This bill would ban AI companion chatbots for minors and establish criminal penalties for companies that allow minors to access AI companions that produce sexual content. We are also grateful for the endorsement from JusticeDotOrg and NCYPAlliance on this piece of legislation. I understand that some people have concerns that this legislation may be too broad or aggressive—but lives are at stake. I would much rather support AI regulations that are too strict and subsequently adjust, than the current lack of regulations that are putting our communities at risk. As we move forward, I continue to explore all routes to regulate AI and ensure the harmful effects of this technology are not felt by our communities.”

Miscellaneous

• On partnering with Rep. Jay Obernolte (R-CA) on AI legislation, Rep. Lori Trahan (D-MA) said, “I’m hopeful — end of the week, over the weekend — that we have an agreement that he and I can shepherd into our larger teams.” She added, “We need to sort of change the posture of Congress, to not play catch-up.” (Punchbowl)

• On data centers being a priority on Democrats’ artificial intelligence agenda in the next Congress, House Democratic Leader Hakeem Jeffries (D-NY) said, “Our homegrown companies can continue to lead the world in this transformative technology” [but that] “we’ve got to make sure we protect the American consumer. We have to protect the American homeowner. We have to protect the American rate payer from some of the downsides of the explosion of what has been taking place across the country, particularly in connection with data centers. We’ve maintained from the very beginning as House Democrats that we want to support innovation excellence, while at the same time making sure there are guardrails to protect the American people.” (Politico)

• Sen. Chuck Grassley (R-IA) posted “China will do whatever it takes 2overtake the US incl infiltrating American AI companies 2steal our cutting edge tech+ideas. Sen Banks&I wrote to 9 AI companies 2ensure they can defend against Chinese espionage+manage insider threats+notify US govt in the event of a breach”

• Sen. Richard Blumenthal (D-CT) posted “AI pet scams are becoming increasingly rampant as people use this tech to claim they have your missing pet. The FTC ought to be warning more people about this scam’s red flags—sharing doctored photos, claiming the animal is injured, demanding money.”

• Rep. April McClain Delaney (D-MD) posted “Quantum leadership starts here in Maryland. That’s why advancing the National Quantum Initiative Reauthorization Act out of the Science, Space, and Technology Committee matters — it builds on bipartisan momentum and invests in the research institutions driving American innovation. NIST in Gaithersburg continues to be a cornerstone of that leadership.”

• Sen. Jim Banks (R-IN) posted “We must do everything in our power to ensure the US military has an overwhelming and fear-inducing technological advantage. Enhanced Chinese AI capabilities will put that advantage at risk. This must be blocked. Failure is not an option.”

• Banks also posted “The 21st century will be defined by advanced AI and America is leading the way. China will do whatever it takes to surpass us and is conducting widespread corporate espionage. GrassleyPress and I are working to stop this existential threat.”

• Rep. Nick Langworthy (R-NY) posted “I voted NO on turning your car into a surveillance tool. As a husband and father I care deeply about safety, but not at the expense of freedom. We should be wary of giving AI the power to monitor and shut down your car. Big Brother has no place spying on you behind the wheel.”

• House Homeland GOP posted “Launching a joint investigation into the national security risks posed by PRC-developed AI models, HomelandGOP Chairman RepGarbarino and ChinaSelect Chairman RepMoolenaar sent letters to Anysphere and Airbnb this week requesting information on their use of or exposure to Chinese AI developed by Moonshot AI and Alibaba.”

• Rep. Kim Schrier (D-WA) posted “The impacts of AI are a big concern for my constituents. They are worried about what AI growth means for their jobs, privacy, and energy prices. AI companies shouldn’t be forcing constituents like mine to foot the bill for their energy use. I’ll keep fighting to make these companies – not my constituents – pay up.”

• Rep. Nathaniel Moran (R-TX) posted “American companies should not be building their products on AI developed by CCP-linked firms like DeepSeek and Alibaba. My bill, the Deterring Adversarial Access to American Data Act, would disincentivize companies from exposing Americans’ data security to our adversaries.”

• Science Committee Democrats posted “U.S. leadership in quantum is far from assured. We are on the precipice of not just falling to second place, but maybe even third or fourth. The NQIA reauthorization will help leverage our international partners to maximize our quantum research and development capabilities.”

• Rep. Sara Jacobs (D-CA) posted “Section 702 of FISA has allowed the government to spy on the American people for decades – but the rise of AI makes it a lot easier and faster. We can’t let this practice continue unchecked, so I’m still a hard NO on a clean FISA reauthorization.”

• Rep. Suzan DelBene (D-WA) posted “The Trump administration is adding more red tape to our health care system by implementing an AI program that delays & denies care for seniors. The American people deserve programs that make health care more accessible, not less.”

• Sen. Maria Cantwell (D-WA) posted “We should use AI to advance medical research in months instead of years. But we’ll have some real problems if we use AI to deny Medicare coverage and delay people’s healthcare.”

• Cantwell also posted “I don’t want AI to restrict Medicare for any WA senior. Using AI as a tool to deny people health care should make us all anxious.”

• Rep. Bonnie Watson Coleman (D-NJ) posted “Infrastructure projects, like the AI data centers being built, are important to the success of industry and economic growth in this country, but we must first protect the health of people and the planet. The proliferation of data centers has driven up energy costs around the country and we don’t even have a full grasp of the health impacts on communities. That’s why I introduced the Data Center Community Impact Act so we can fully understand the short and long term consequences of these data centers and act accordingly.”

• House Foreign Affairs Committee Majority posted “Spoiler Alert: China recommends America drops export controls on AI chips and chipmaking equipment.”

• Rep. André Carson (D-IN) posted “BILL ALERT: I’m co-leading the AI Data Center Site Selection Transparency Act. Data centers are often shrouded in mystery, with plans moving forward before meaningful public input. My bill will require data centers to be transparent. Neighborhoods have to deal with the consequences of data centers – and so neighborhood input should be central, not an afterthought.”

• Rep. Suhas Subramanyam (D-VA) said, “Mr. Speaker, data centers hold critical information we use every day and keep the internet running. And whether it’s AI or blockchain or any other innovations in technology, data centers are going to be a key part of this. Because data centers are so critical, they are becoming targets during wars. Look at the Russia Ukraine war. Russia is attacking Ukrainian data centers. Iran has struck commercial data centers in the UAE and has said that data centers are military targets now. Well, my district is home to hundreds of data centers and families. Schools, parks, places of worship are all close to data centers in my district. And, so, the people living around these data centers shouldn’t have to worry about being a target anymore. So that’s why I’m introducing the Data Infrastructure Risk Reduction Act. This bill would direct the Department of Homeland Security to develop a strategy to protect data centers and the communities around them from being targeted during attacks. The government needs to do everything possible to protect these communities, because Americans deserve to know that if a data center is going to be built next to them, we will protect that community, and they won’t be a target at that point. So, I urge my colleagues to co-sponsor and pass this bill.”

• Sen. Marsha Blackburn (R-TN) posted “Secretary Bessent hit the nail on the head.
  Why would we ever include Communist China in the conversation about regulating AI? Pass the TRUMP AMERICA AI Act to supercharge innovation and ensure AMERICAN dominance.”

• Rep. Josh Harder (D-CA) posted “The age of electricity shouldn’t be defined by utility bills higher than your monthly rent. As AI demand increases, it’s more important than ever we reduce the yearslong grid connectivity backlog and make it easier to build new affordable energy projects.”

• Rep. Ted Lieu (D-CA) posted “The American Leadership in AI Act brings together over 20 bipartisan legislative proposals to strengthen U.S. leadership in AI. AI presents a wide range of policy challenges and opportunities, and we should continue working to advance thoughtful solutions.”

• Rep. Valerie Foushee (D-NC) posted “Generative AI can be incredibly dangerous. It enables the spread of deepfakes and vast misinformation across our country. RepDonBeyer, RepMoylan and I introduced the bipartisan Protecting Consumers from Deceptive AI Act to mandate clear labeling of AI-generated content. This bill is endorsed by the American Society for Collective Rights Licensing, the Society of Composers and Lyricists, AuthorsGuild, and more. Congress needs to regulate all sectors of AI, including generative AI, and this bill is an important step in that direction.”

• Rep. Sam Liccardo (D-CA) posted “With new technology, like artificial intelligence, there’s more we can do to collect large data sets that can help folks anticipate the pathways of these migrating whales.”

• Rep. Pat Harrigan (R-NC) posted “BernieSanders is hosting a panel this Wednesday with a professor from Tsinghua University, one of China’s top universities with direct ties to the Chinese Communist Party, and Zeng Yi, the Dean of the Beijing Institute of AI Safety and Governance, to argue that America needs to work with China on AI policy. This is the same China that just blocked Meta’s $2 billion deal to acquire Manus AI, a startup whose founders had already moved to Singapore and whose deal was already done and closed. Beijing decided it did not matter. They stepped in, killed the deal, and restricted the founders from leaving the country while it was under review. China is aggressively locking down their most powerful AI assets and shutting American companies out. Bernie Sanders wants to hand them a seat at the table to help decide how America handles the same technology. Make that make sense.”

• Regarding criticism his AI “existential threat” event included Chinese scientists, Sen. Bernie Sanders (I-VT) said, “If President Trump can sit down with [Chinese] President Xi [Jinping], I think leading scientists in America can sit down with leading scientists in China to discuss how in fact we can work together.” He said this “does not mean that there should not be international cooperation in trying to make sure that the end result of AI is one that is safe and not a threat to humanity.” (Semafor)

• Sen. Bernie Sanders (I-VT) posted “The people building AI admit they may not be able to control it. This is not science fiction—this is what experts are telling us.
  That’s why I’m bringing together leading AI scientists from the U.S. and China to discuss the risks posed by AI.”

• Sanders also posted “Ex-OpenAI board member Helen Toner says AI companies are “deadly serious” about building machines that outperform humans at everything and they don’t know if they’ll be able to control them. So why hasn’t Congress taken meaningful action to regulate AI?”

• Sanders also posted “The world’s leading scientists are warning that AI could ‘end civilization as we know it.’ 97% of Americans believe AI safety should be subject to rules. When will our government wake up?! We need global cooperation — before it’s too late.”

What I’m Reading This Week

• Families Sue OpenAI Over Canadian Mass Shooter’s Use of ChatGPT, Geoff Brumfiel, NPR.

• Poll: GOP Voters Skeptical of AI as Trump Steams Ahead, Politico.

• AI Agent Forms its Own Company, Gets Ready to Trade Crypto, Olivier Acuna, CoinDesk.

About Zero One Strategies

Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

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