November 24: This week in AI federal policy
DC/ai Decoded: A weekly newsletter on AI federal policy
This week decoded
The state AI moratorium is back under debate in the White House and Congress. The White House was expected to issue an executive order to block states from regulating AI, but House Republican leadership asked the Trump Administration to delay the rollout as they debate codifying the policy in the must-pass National Defense Authorization Act (NDAA).
AI-led espionage, cyberattacks, and terrorism were a major focus for policymakers, as well as protecting Americans from the impacts of a potential AI bubble.
At the FinRegLab 2025 AI Summit, Sen. Mike Rounds (R-SD) said the U.S. is pursuing launching critical AI hardware into space for its unlimited power and cooling capabilities. He also previewed he will be introducing in the coming weeks a series of bills focused on accelerated science using AI.
Read more below
Congress
Hearings
Last week
On November 18, the House Energy and Commerce Subcommittee on Oversight and Investigations held a hearing on Innovation with Integrity: Examining the Risks and Benefits of AI Chatbots.
On November 18, the House Ways and Means Subcommittee on Work and Welfare held a hearing on Leaving the Sticky Notes Behind: Harnessing Innovation and New Technology to Help America’s Foster Youth Succeed.
On November 18, the Joint Economic Committee held a hearing on Frontier Technologies, Industrial Efficiency, and Pro-Innovation Policies.
On November 20, the House Foreign Affairs Subcommittee on South and Central Asia held a hearing on Export Control Loopholes: Chipmaking Tools and their Subcomponents.
This week
Congress is in recess for the Thanksgiving holiday.
Upcoming
On December 10, the House Financial Services Committee holds a hearing on From Principles to Policy: Enabling 21st Century AI Innovation in Financial Services.
Legislation
The House passed the Generative AI Terrorism Risk Assessment Act sponsored by Rep. August Pfluger (R-TX), which requires the Department of Homeland Security (DHS) to conduct annual assessments of threats to the U.S. posed by terrorist organizations, such as ISIS and al Qaeda, utilizing generative artificial intelligence (GenAI) applications for terrorist activity. (Text)
The House Small Business Committee passed the AI for Main Street Act sponsored by Reps. Mark Alford (R-MO) and Hillary Scholten (D-MI), and the AI-WISE Act sponsored by Reps. Troy Downing (R-MT) and Scholten.
Sens. Mark Kelly (D-AZ) and Todd Young (R-IN) the Advanced Artificial Intelligence (AI) Security Readiness Act to direct the National Security Agency (NSA) to develop and disseminate security guidance to protect America’s advanced technology from foreign adversaries. (Text)
Sens. Ron Wyden (D-OR), Peter Welch (D-VT), Amy Klobuchar (D-MN), Cory Booker (D-NJ), Richard Blumenthal (D-CT), Chris Van Hollen (D-MD), Tina Smith (D-MN), Andy Kim (D-NJ), Jean Shaheen (D-NH), John Fetterman (D-PA), Bernie Sanders (I-VT), and Sheldon Whitehouse (D-RI) reintroduced the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act to prevent companies help landlords collude to set prices via software and price-setting algorithms. Rep. Becca Balint (D-VT) introduced the House version of the bill. (Press release)
Reps. Brian Fitzpatrick (R-PA) and Brendan Boyle (D-PA) introduced the Strengthening Essential Manufacturing and Industrial (SEMI) Investment Act to expand the CHIPS Act tax credit to include upstream materials essential to semiconductor production, provide clear statutory definitions for direct and indirect production materials and annual materials qualification lists from Treasury and Commerce, and extend the Advanced Manufacturing Investment Credit through 2031. The Senate companion is sponsored by Sens. Michael Bennet (D-CO), Marsha Blackburn (R-TN), Thom Tillis (R-NC), and Chris Coons (D-DE). (Press release)
Rep. Nanette Barragán (D-CA) introduced a bill to amend the Public Health Service Act to ensure that medical students, medical residents, and medical faculty receive education and training in the deployment of artificial intelligence in the medical profession. (Text)
Rep. Rob Menendez (D-NJ) introduced the Strategic Task Force on Scam Prevention Act to create a federal interagency task force to address scams by developing a comprehensive national strategy that includes leveraging existing consumer reporting systems, public education campaigns, coordination with industry sectors like AI, cryptocurrency, and social media, and enforcement actions related to fraud and money laundering. (Text)
Sens. Dave McCormick (R-PA), Chris Coons (D-DE), and Adam Schiff (D-CA) introduced a bill to direct the Comptroller General of the United States to conduct a technology assessment focused on liquid cooling systems for artificial intelligence compute clusters and high-performance computing facilities. (Text)
Rep. Luz Rivas (D-CA) introduced the Artificial Intelligence for Advancing Literacy and Learning Act (AI for ALL Act) to establish a Artificial Intelligence (AI) Literacy and Education Commission within the Office of Science and Technology Policy (OSTP) to develop a national strategy for the federal government to improve and promote AI literacy and education and to coordinate AI literacy and education efforts across the federal government. (Press release)
Sens. Mark Kelly (D-AZ) and John Curtis (R-UT) introduced the Algorithm Accountability Act to amend Section 230 of the Communications Decency Act of 1996 to impose a duty of care on the companies that utilize recommendation-based algorithms. (Text)
Correspondence
Rep. Suhas Subramanyam (D-VA) sent a letter to the Chair of the Federal Reserve and the Chair of the Securities and Exchange Commission (SEC) urging an investigation into the existence of an AI bubble and its potential impact on the American economy. (Letter)
Sens. Adam Schiff (D-CA), Ed Markey (D-MA), Chris Van Hollen (D-MD), Elizabeth Warren (D-MA), Peter Welch (D-VT), Raphael Warnock (D-GA), and Richard Blumenthal (D-CT) sent a letter to Federal Energy Regulatory Commission (FERC) Chair Laura Swett urging FERC to ensure that energy demand from data centers does not result in rate hikes for American households. (Letter)
Ranking Member of the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP) Raja Krishnamoorthi (D-IL) sent a letter to the Department of Education urging they raise awareness among American educators and families about the data privacy and child safety risks posed by AI-enabled toys manufactured by companies based in the People’s Republic of China (PRC). (Letter)
Senate Democratic Leader Chuck Schumer (D-NY), and Sens. Ron Wyden (D-OR), Elizabeth Warren (D-MA), Catherine Cortez Masto (D-NV) Andy Kim (D-NJ), Sen. Jeff Merkley (D-OR), Chris Van Hollen (D-MD), and Sen. Ben Ray Luján (D-NM) sent a letter to President Donald Trump on his decision to suspend critical export controls that helped prevent Chinese companies from accessing American-made advanced technology. (Letter)
Sen. Marsha Blackburn (R-TN) sent a follow-up letter to Google CEO Sundar Pichai requesting additional information about its large language model, Gemma, fabricating criminal allegations against her. (Letter)
Reps. Bill Foster (D-IL), Brad Sherman (D-CA), Stephen Lynch (D-MA), Al Green (D-TX), Emanuel Cleaver (D-MO), Joyce Beatty (D-OH), Nydia Velázquez (D-NY), Gregory Meeks (D-NY), David Scott (D-GA), Jim Himes (D-CT), Juan Vargas (D-CA), Josh Gottheimer (D-NJ), Vicente Gonzalez (D-TX), Sean Casten (D-IL), Ayanna Pressley (D-MA), Rashida Tlaib (D-MI), Ritchie Torres (D-NY), Sylvia Garcia (D-TX), Nikema Williams (D-GA), Brittany Pettersen (D-CO), Cleo Fields (D-LA), and Janelle Bynum (D-OR) sent a letter to Treasury Secretary Scott Bessent requesting the Financial Stability Oversight Council (FSOC) convene a working group of financial, technology, and economic experts to assess the vulnerability of the U.S. financial system to a potential sharp drop in the value of AI-related assets and infrastructure. (Letter)
Sens. Ed Markey (D-MA) and Elizabeth Warren (D-MA) sent a Dear Colleague letter to Senate Democrats urging them to oppose the addition of a state AI regulation moratorium to the National Defense Authorization Act (NDAA) for Fiscal Year 2026. (Letter)
Sens. Chris Murphy (D-CT) and Elizabeth Warren (D-MA) sent a letter to The White House and Office of Government Ethics (OGE) requesting information about inconsistencies in U.S. Special Envoy to the Middle East Steve Witkoff’s ethics disclosure forms, concerns related to a deal that allows the United Arab Emirates (UAE) to acquire U.S.-made AI chips, and potential crypto-related conflicts of interest. (Letter)
Sen. Elizabeth Warren (D-MA) sent a letter to David Sacks, White House Special Advisor for AI and Crypto, and Michael Kratsios, Director of the White House Office of Science and Technology Policy, requesting information about the Trump Administration’s potential plans to use tax credits and loan guarantees to support OpenAI and other AI companies. (Letter)
Rep. Debbie Dingell (D-MI) sent a letter to Michigan Public Service Commission chair Dan Scripps requesting transparency, accountability, and frequent clear communications with the public throughout the approval and construction processes of the Stargate data center in Saline Township, MI. (Letter)
Publications and Events
Sen. Bernie Sanders (I-VT) delivered remarks with Nobel laureate Dr. Geoffrey Hinton on “the transformative effects that artificial intelligence (AI) and robotics will have on our country, the world economy and the working class” during an event at Georgetown University.
Trump Administration
U.S.-China Economic and Security Review Commission
The U.S.-China Economic and Security Review Commission released a staff report on Vying for Quantum Supremacy: U.S.-China Competition in Quantum Technologies, finding quantum technologies in computing, sensing, and communications have the potential to be transformational; quantum supremacy will be a critical national asset; America still leads the world in most quantum research, but China has deployed industrial-scale funding and centralized coordination to seize dominance in quantum systems; China leads the world in quantum communications and is making rapid progress in quantum computing and sensing; and China’s pursuit of quantum technologies closely aligns with its national security goals. (Report)
Treasury Department
The Treasury Inspector General for Tax Administration (TIGTA) released its semi-annual report to Congress highlighting audit and evaluation reports with unimplemented corrective actions, including several reports pertaining to artificial intelligence. (Report)
Health and Human Services (HHS)
HHS Secretary Robert F. Kennedy Jr. announced the Caregiver Artificial Intelligence Prize Competition calling for engineers, scientists and entrepreneurs to use AI to “make caregiving smarter, simpler and more humane.” (FedScoop)
Noteworthy Quotes and Events
ADMINISTRATION
White House
President Donald Trump posted “Investment in AI is helping to make the U.S. Economy the ‘HOTTEST’ in the World – But overregulation by the States is threatening to undermine this Growth Engine. Some States are even trying to embed DEI ideology into AI models, producing ‘Woke AI’ (Remember Black George Washington?). We MUST have on Federal Standard instead of a patchwork of 50 State Regulatory Regimes. We can do this in a way that protects children AND prevents censorship!”
Health and Human Services (HHS)
In his announcement introducing the Caregiver Artificial Intelligence Prize Competition,
HHS Secretary Robert F. Kennedy Jr. said, “Many caregivers work around the clock, 24 hours a day, seven days a week, taking care of their loved ones with lifelong disabilities, dementia or chronic illness. Too many lose their income, their job, their aspirations and ambitions for themselves and even their own health in the process.” (FedScoop)
Federal Reserve
Fed Governor Christopher Waller delivered remarks on The Case for Continuing Rate Cuts
at the Society of Professional Economists Annual Dinner in London, in which he said, “The rise in the stock market is substantially driven by artificial intelligence (AI)–related businesses that only account for a small share of employment. Even while AI’s share of stock market growth and corporate profits grew significantly from 2021 through 2024, employment in AI-related firms held steady at less than 3 percent of nonfarm employment. While I believe AI will create jobs in the medium term, the AI boom on Wall Street isn’t doing so yet.” (Remarks)
Fed Governor Michael Barr delivered remarks on AI and Central Banking at the Singapore Fintech Festival, saying, “Given AI’s current and prospective role in economic activity, we are devoting the necessary resources to understanding it, including by analyzing not only AI’s economic and financial implications, but also exploring how AI can enhance our financial stability work, strengthen supervisory and regulatory capabilities, and ensure the smooth functioning of our payment systems.” (Remarks)
Fed Governor Lisa Cook delivered remarks on A Policymaker’s View of Financial Stability at Georgetown University’s McDonough School of Business Psaros Center for Financial Markets and Policy, saying about AI, “…Unlike pre-programmed algorithms with limited flexibility, generative AI is able to quickly review large amounts of data and then autonomously deploy trading strategies that could be opaque to humans. Used without careful testing and human oversight, generative AI may create risks that are difficult to monitor or mitigate. The use of generative AI in trading may also improve on current algorithmic trading activity, especially if the less rigid models prove able to adjust in ways that stabilize rather than destabilize prices. There is early evidence for both.” (Remarks)
Treasury Department
Secretary Scott Bessent delivered remarks before the Treasury Market Conference on Parallel Prosperity: Strengthening the Treasury Market to Build America’s Golden Age, saying, “At the most recent TBAC meeting, the Committee determined that the current issuance mix is ‘well-positioned to balance a low cost of debt with the low volatility of a productivity boom.’ While keeping proper risk management in mind, our long-term economic outlook is consistent with an expectation of increased productivity stemming from an additive boost of artificial intelligence, increased investment into the United States, and elevated capital expenditure investment.” (Remarks)
CONGRESS
State AI Moratorium Executive Order
Rep. Lori Trahan (D-MA) posted “Let me get this straight. Instead of protecting our kids from the obvious dangers posed by AI, Trump is going to try to block all state laws that have been passed to limit the harms of this emerging technology. This is a handout to Big Tech.”
Rep. Yassamin Ansari (D-AZ) posted “The Trump Administration is preparing an executive order to punish states that try to set basic guardrails on AI. Not only is this likely illegal, it puts Americans’ privacy in danger and could lead to even higher energy costs. States have been leading to protect families against AI discrimination, deepfakes, data misuse, and AI-driven harm. But of course, Republicans only believe in “states’ rights” when it’s politically convenient. The minute corporations complain, that federalism disappears.”
Sen. Amy Klobuchar (D-MN) posted “This unlawful Executive Order would attack states for enacting AI guardrails that protect consumers, children, and creators—including by threatening high-speed internet for rural communities. This was already rejected by the Senate 99 to 1, and it must be rejected again.”
Rep. Don Bacon (R-NE) posted “The Federal Government has role to regulate national commerce right? Do you want 50 different standards on beef? If we want to dominate the AI competition we can’t have 50 different standards.”
Sen. Ed Markey (D-MA) posted “Big Tech bet big on Trump. Now, they’re getting a return on their investment. Trump’s AI order would create a golden age for Big Tech Billionaires and a dark age for kids, workers, and our planet. We must stop it.”
Sen. Chris Van Hollen (D-MD) posted “Must be a total coincidence this announcement came the day after these guys were seen at Trump’s ritzy dinner party. Trump doesn’t have this authority. States are filling the void left by the federal govt’s failure to create an accountability structure for AI companies.”
Rep. Marjorie Taylor Greene (R-GA) posted “There should not be a moratorium on states rights for AI. States must retain the right to regulate and make laws on AI and anything else for the benefit of their state. Federalism must be preserved.”
Sen. Jack Reed (D-RI) posted “AI is a complex, powerful, evolving technology that deserves careful scrutiny & balanced oversight. There should be no deal that gives Big Tech free rein & takes away states’ rights & ability to protect their citizens.”
Sen. Richard Blumenthal (D-CT) posted “Make no mistake: Trump is working for Mark Zuckerberg—not you. The President’s AI agenda is raising your electrical bills, supercharging China’s tech sector, putting predatory chatbots in your child’s hands & risking an AI bubble. Big Tech owns this White House, literally. Trump is once again weaponizing the White House on behalf of Big Tech. This E.O. would punish & coerce states for commonsense AI safeguards against deepfakes, child sexual exploitation, & elections interference. The receipts for this unlawful & corrupt ploy are in Silicon Valley.”
Rep. Doris Matsui (D-CA) posted “When Republicans were trying to jam through Donald Trump’s big ugly bill they also tried to impose an AI moratorium that would have shut down state and local AI safeguards. I fought back against it, and it never made it into Trump’s disaster of a bill. Despite overwhelming opposition, they want to bring it back. The American people know how irresponsible and corrupt this is, and so do I. I will use every available tool to make sure their second attempt at gross overreach fails again. AI can’t be a free-for-all. It needs firm rules and real accountability to promote innovation and safety.”
Rep. Yvette Clarke (D-NY) posted “It’s painfully clear that Trump resurrected the failed AI moratorium as a gift to his billionaire donors whose profits depend on their unfinished technology remaining unregulated. While Congress wastes precious time, every scammed senior, every ripped-off artist, every deepfaked teenager, and all the countless other victims of AI-powered abuse across the country are relying on their states to pick up the slack and protect them. A moratorium does nothing but throw them to the wolves.”
Rep. Don Beyer (D-VA) posted “Congress has been slow to respond to AI; in the absence of action states are taking the lead to create guardrails and protect the public. Trump’s ban would kill responsible safety reforms to give AI companies a Wild West environment, putting Americans at risk. A terrible idea. I’ve been working hard to help educate my fellow Members of Congress on artificial intelligence and leading the way on developing AI policy responses to protect Americans’ safety and jobs. The House may have been in recess for two months, but we didn’t stop. More on this soon.”
State AI Moratorium in NDAA
On including a state AI moratorium in the final NDAA, House Republican Whip Steve Scalise (R-LA) said, “We’re still looking at trying to do that. We obviously tried on preemption in the One Big Beautiful Bill. It got removed.” (Punchbowl)
Senate Armed Services Ranking Member Jack Reed (D-RI) said, “Historically, we’ve allowed states to experiment with legislation and approaches, and I think it’s necessary in AI to come up with some type of formula.” (Punchbowl)
Sen. Elizabeth Warren (D-MA) said, “Every single Democrat [on the Armed Services panel] has said not only no, but hell no.” (Punchbowl)
Sen. Josh Hawley (R-MO) said, “It’s terrible. Some states are starting to move on [AI kids safety legislation], are we going to tell them no?” (Punchbowl)
Sen. Brian Schatz (D-HI) said, “This is a poison pill and we will block it.” (Punchbowl)
Sen. Dick Durbin (D-IL) posted “Republicans already tried to ban states’ ability to regulate AI in their Big, Ugly Bill. That ban was voted down 99-1. Their new political maneuver would be a free pass to Big Tech, and it must be stopped again.”
Senate Judiciary Committee Democrats posted “BREAKING: House Republicans are trying to sneak a BAN on states regulating artificial intelligence into the NDAA, a disastrous idea that would make tech platforms even more dangerous for kids.”
Sen. Adam Schiff (D-CA) posted “AI has the potential to improve our lives and fundamentally change the way we work and live, but we need strong guardrails to mitigate potential harms. While Congress should take the lead on crafting the rules of the road, in the absence of federal leadership, the states must have the power to protect constituents. I am concerned about potential poison pill provisions being added to the NDAA that would block states from passing their own laws on AI. In California, that would undermine laws protecting workers, privacy and safety.”
Rep. Warren Davidson (R-OH) posted “There must be a standalone bill, subject to amendment and debate - not some paragraph of blanket amnesty jammed into a must pass bill on other subjects. AI deserves honest debate and thoughtful consideration by Congress.”
Davidson also posted “Nevertheless, there must be a standalone bill, subject to amendment and debate - not some paragraph of blanket amnesty jammed into a must pass bill on other subjects. AI deserves honest debate and thoughtful consideration by Congress. The failed effort to add AI to HR1 should make it obvious, but apparently not... Also, privacy is the base layer for ethical AI, and privacy should be addressed in conjunction with AI.”
Sen. Ed Markey (D-MA) posted “Big Tech is trying to sneak an AI moratorium into the defense bill. Democrats can’t let them. I’m urging my colleagues to hold firm against this ridiculous attempt to undermine states’ abilities to regulate AI. We beat it once—we can beat it again.”
Markey also posted “First, Donald Trump sided with his billionaire Big Tech buddies and endorsed the AI regulation moratorium. Now, MAGA Republicans are trying to sneak it into the defense bill. Democrats must stand up to this all-out attack on AI regulation.”
Rep. Rob Menendez (D-NJ) posted “Republicans are once again trying to pass a sweeping provision that would block states from creating responsible AI regulations. States like New Jersey are already leading with common sense guardrails on AI, and this would shut that progress down. We’ve fought this before - and we’ll do it again.”
Sen. Richard Blumenthal (D-CT) posted “States have been the frontline against election deepfakes & other AI abuses. Any ‘moratorium’ on state safeguards would be a dire threat to our national security. Senate Democrats will block this dangerous hand out to Big Tech from being attached to the NDAA. Anthropic’s disclosure that China used its AI tools to orchestrate a hacking campaign is enough warning that this AI moratorium is a terrible idea. Congress should be surging ahead on legislation like the AI Risk Evaluation Act—not giving China & Big Tech free rein.”
GAIN AI Act in NDAA
Sen. Jim Banks (R-IN) said, “At this point, it’s passed out of the Senate. It’s going to be a discussion for the conference committee.” (Punchbowl)
House Foreign Affairs Committee Chair Brian Mast (R-FL) said the GAIN AI Act is “good legislation” but added, “It’s unfortunate they’re trying to move everything through NDAA.” (Punchbowl)
AI Cyberespionage
Rep. Brian Fitzpatrick (R-PA) posted “This was more than a cyber breach—it was a warning shot. A reported Chinese state-sponsored group used AI to autonomously execute an espionage operation—rapid targeting, independent execution, almost no human touchpoints—showing just how quickly the battlefield is evolving and why we must stay ahead. From my work in the FBI to my role leading CIA oversight on the House Intelligence Committee, I know AI security cannot sit on the margins of our national defense strategy—it must be a core requirement. This incident makes that unmistakably clear. We must bring the full weight of our national security apparatus to this challenge and ensure the United States stays ahead of any adversary seeking to weaponize AI.”
Rep. August Pfluger (R-TX) posted “While AI is a transformational tool with immense potential for good, it can also be dangerously weaponized in the wrong hands and pose a serious threat to our national security. Our policy must be proactive to keep up with the emerging threat and ensure the technology is harnessed for good. This is exactly what my legislation does.”
Sen. Chris Murphy (D-CT) posted “Guys wake the f up. This is going to destroy us - sooner than we think - if we don’t make AI regulation a national priority tomorrow.”
Sen. Richard Blumenthal (D-CT) posted “China’s hacking Anthropic should be a break the glass alarm—showing our nation’s security under escalating threat. Adversaries will turn American AI against us unless we pass my & Sen. Hawley’s AI Risk Evaluation Act & other safeguards.”
Rep. Ben Cline (R-VA) posted “Chinese hackers used AI to automate a cyberattack with almost no human involvement. China continues to conduct large-scale hacking operations, and the threat is only growing. America must remain vigilant and invest in defenses to safeguard our interests from the CCP.”
Rep. Darin LaHood (R-IL) posted “America’s global AI leadership matters. The CCP is engaged in a coordinated AI campaign to replace the U.S. as the world’s tech leader. Congress must continue to fortify U.S. technological leadership and constrain the CCP’s ability to develop advanced AI.”
Hearings
In his opening statement at a House Energy and Commerce Subcommittee on Oversight and Investigations hearing on Innovation with Integrity: Examining the Risks and Benefits of AI Chatbots, Subcommittee Chair John Joyce (R-PA) said, “Americans are increasingly engaging with chatbots for mental health support. For some, turning to a chatbot for therapy can be helpful in limited circumstances when they have nowhere else to go. Under the wrong circumstances, however, these chatbot relationships can go wrong. First, users can feel a false sense of anonymity with chatbots, sharing personal or sensitive information that is not protected by confidentiality obligations. Moreover, chatbots retain data to enhance their ‘memory,’ which improves the quality of their interactions with users. This data is also used to train the chatbot’s base model to improve the accuracy of responses across the platform. In addition to chatbots retaining data to improve their models, AI chatbots have been subject to data breaches and if conversation data falls into the wrong hands, sensitive personal information can be obtained by malicious actors. Second, chatbots are designed to maximize engagement with users. As a result, sycophantic chatbots have been found to affirm harmful or illogical beliefs, providing vulnerable users with perceived support for unhealthy behaviors such as self-harm, eating disorders, and suicide. For children and adults with a propensity for mental illness, this can be particularly problematic.” (Press release)
Miscellaneous
Rep. Ted Lieu (D-CA) delivered a TedX Talk in Los Angeles in which he calls on Congress to regulate AI to avoid “three kinds of even more urgent AI dangers: AI that can destroy the world; AI that can kill individuals; and AI that can cause a large number of other significant kinds of harm.” (Press release)
About his planned letter to request the Financial Stability Oversight Council (FSOC) to publish a report and convene a working group on a potential AI bubble, Rep. Bill Foster (D-IL) said he is “increasingly concerned about the collapse of the AI bubble.” He also said, “The total amount of mispriced assets is several trillion dollars, which is the same amount or equivalent to the global financial crisis.” He added, “Assuming that FSOC still has a staff, this would be an excellent thing for them to look at. It’s why we created them in the first place.” (Punchbowl)
Rep. Rob Menendez (D-NJ) posted “CHCI’s Tech Summit to discuss AI. As AI innovates, we must ensure our communities benefit with affordable access and stronger digital skills. Tech can be a bridge, but only if we close the digital divide. Important conversation, with more work ahead.”
Rep. Luz Rivas (D-CA) posted “As AI becomes more widely used in our everyday life, it’s important that the federal government and public understands how to use this tool both safely and effectively. My AI for ALL Act meets the demands of our ever changing world, especially when it comes to emerging technologies like AI.”
Rivas also posted “As AI becomes more prevalent in every aspect of daily life, it is important for all communities to learn how to become proficient in how it works. I spoke at CHCI’s Tech Summit to talk about AI and how my AI for ALL Act will improve AI literacy and education across the country.”
Rivas also posted “Legislative Update I introduced the AI for ALL Act. My bill would develop an Artificial Intelligence (AI) national strategy from leading experts and the federal government. AI literacy and education across the country will better prepare our communities to handle the vast opportunities and potential challenges. My bill is the critical step to ensure that the U.S. remains a global leader in innovation and AI.”
Sen. Bernie Sanders (I-VT) posted “Is AI inherently bad? Of course not. The question is: WHO controls it & for what purpose? Does anyone believe that the richest people on Earth are investing hundreds of billions in AI to improve life for ordinary people, eliminate poverty & solve global warming? I doubt it.”
Sanders also posted “jonstewart and I agree: AI must work for everybody, not just a handful of billionaires.”
Sen. Marsha Blackburn (R-TN) posted “This was a catastrophic failure of oversight for an AI model that was downloaded by more than 200M people. Google has no excuse for the patently false material generated by Gemma, and their word salad response to my concerns will not suffice.”
Sen. Dave McCormick (R-PA) posted “Proud to support the launch of the AI Infrastructure Coalition. AI infrastructure will determine whether America leads or follows in the years ahead. That’s why it’s important to work together to create the policy agenda and critical connections to advance innovation and ensure continued US leadership in AI.”
Rep. Scott Frankin (R-FL) posted “As AI evolves, so do the threats. RepPfluger’s Generative AI Terrorism Risk Assessment Act takes a practical step toward understanding how terrorists may try to exploit this technology. Vigilance like this helps protect Americans from future AI-enabled threats.”
House Foreign Affairs Committee posted “To ensure the free world wins the defining AI race, we MUST close loopholes China is currently exploiting. It’s critical that the center of AI revolution remains in Silicon Valley, not Shenzhen.”
Sen. Mark Warner (D-VA) posted “An AI teddy bear that talks to your kid about kinks and the glory of dying? This stuff is freaky and dangerous. I’m working in the Senate to try and crack down on our kids’ interactions with AI.”
Rep. Steve Cohen (D-TN) posted “I introduced the Clean Cloud Act today. Cryptominers & AI data centers are growing fast and straining grids—and Memphis families already face some of the highest energy burdens in the country. My bill ensures new data-center growth is powered by real clean energy, not higher bills for ratepayers.”
Rep. Bill Foster (D-IL) posted “Today, I led 21 of my House Financial Services Committee colleagues in asking the Financial Stability Oversight Council (FSOC) to assess the vulnerability of the U.S. financial system to a potential AI bubble.”
Rep. Warren Davidson (R-OH) posted “Privacy is base layer for ethical AI.”
Sen. John Cornyn (R-TX) posted “Manufacturers in Taiwan produce hardware critical to the AI industry in the U.S. Much of the tech we use in data centers throughout the nation come from Taiwan. Ensuring support for this ally against Chinese aggression not only benefits the U.S. AI sector but ensures the world’s AI future is not in the hands of the CCP.”
Sen. Amy Klobuchar (D-MN) posted “It’s about time corporate landlords are held accountable for using algorithms to price-gouge renters. Tech like AI should be used to drive prices down, not help corporations collude to charge you more. I’ll keep working to make housing more affordable.”
Sen. Mike Lee (R-UT) posted “Proud to partner with SenatorHeinrich
in backing SecretaryWright’s proposal and urging FERC to strengthen interconnection rules so the grid can handle rising electricity demand from AI without raising costs for families.”
Rep. Sarah Elfreth (D-MD) posted “As Congress looks to regulate AI and other emerging technologies, we must continue to work with our state partners who are actively delivering solutions and tackling these issues. I sat down with Senator Hester to discuss how I can best support the bipartisan work of the Maryland General Assembly to address the impacts of AI in classrooms, workplaces, health care systems, and local communities here in Congress.”
Rep. August Pfluger (R-TX) posted “I just spoke on the House floor in favor of my legislation, the Generative AI Risk Assessment Act. We must pass this bill to counter terror threats posed by the rapid rise of artificial intelligence, and I urge all of my colleagues to support it.”
Rep. Alexandria Ocasio-Cortez (D-NY) posted “Trump’s economy is being held up by a massive AI bubble. A recent study found that of 300 companies that owned generative AI tools, 95% reported zero return on their investments. We will not entertain a bailout of these companies should this bubble pop.”
House Energy and Commerce Committee posted “ENERGY just announced a $1 billion loan to help restart a nuclear power plant in Pennsylvania funded by Republicans’ Working Families Tax Cuts. This funding supports reliable and affordable energy to secure our grid, lead the world in AI development, and power domestic manufacturing.”
Rep. Andy Ogles (R-TN) posted “I am honored to announce that I have been appointed as the Chairman for the House Committee on Homeland Security’s Cybersecurity and Infrastructure Protection Subcommittee. I pledge to shut down the Chinese cyber criminals, AI hacker mills, and internet predators stealing American data for subversive foreign governments. This is an America First mission, and I intend to carry it out with total focus and strength.”
Rep. Jahana Hayes (D-CT) posted “AI is the future of technology. We must be forward-thinking about how we can best teach students and ensure educators have the necessary training and resources to facilitate that learning.”
Rep. Ted Lieu (D-CA) posted “Let’s make sure AI doesn’t destroy the world. We need to pass robust laws to mandate testing for frontier AI models, put in guardrails, and ensure AI does not become an accomplice to mass murder in the future.”
Lieu also posted “It is insane to not regulate AI. Did a TEDx Talk on how Congress must take a proactive approach to make sure we harness the power of AI safely for the future.”
Rep. Mark Takano (D-CA) posted “Corporations are cashing in on AI, not workers and certainly not young Americans.”
House Homeland Security GOP posted “Ten years ago, Islamist terrorists carried out attacks across Paris, murdering 130 people in cold blood. Today, we remember the victims of that horrific day and continue to stand with our allies against terrorism. A decade later, foreign terror networks still remain a grave & enduring threat to the West, America, and the world. Emerging technology has given terrorists new weapons and tools for radicalization––from cloud-based apps & generative AI to drone warfare.”
House Foreign Affairs Committee Majority posted “U.S. export controls on the CCP’s advanced chip industry are essential for winning the AI Arms Race. We support the Trump Administration’s AI Action Plan recommendations to maintain and expand export controls on China.”
Sen. Richard Blumenthal (D-CT) posted “Another sport betting scandal—baseball pitch fixing—highlights the need for my SAFE Bet Act. Guardrails are vital on use of AI, which has opened vast new opportunities to target & exploit gamblers. The twin dangers are addiction & corruption.”
Sen. Katie Britt (R-AL) posted “AI chatbots are infiltrating our children’s spaces. We need real guardrails so kids can be online safely without the risk of chatbots targeting them. Leading bipartisan legislation along with several of my colleagues to hold Big Tech accountable.”
What I’m Reading This Week
The EU Promised to Lead on Regulating Artificial Intelligence. Now It’s Hitting Pause, Pieter Haeck, Politico.
EU to ease AI, privacy rules as critics warn of caving to Big Tech, Supantha Mukherjee and Foo Yun Chee, Reuters.
What’s Driving the EU’s AI Act Shake-Up?, Raluka Besliu, Tech Policy Press.
Goldman Sees China Power Push Giving It Edge Over US in AI Race, Bloomberg.
A.I. Agents Usher in a New Era of Cyberespionage, The New York Times.
ChatGPT Generates a Novel Tax Strategy, Andrew Blair-Stanek, Nils Holzenberger, and Benjamin Van Durme, Tax Notes.
AI-Related Anxiety is Rising in the U.S. – Regulation and Privacy Top the List, Cybernews.