Report from Politico
In Brief – A bipartisan proposal from Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA) to establish a comprehensive federal framework for AI regulation was met by significant resistance on both sides of the partisan divide, illustrating the major hurdles facing meaningful AI legislation in the current environment. The duo’s draft proposes national AI safety and transparency standards while also funding research, education, and workforce development. Many Democrats and “AI safety” advocates rejected the bill’s proposal to block states from adopting new AI-development regulations for three years as part of the federal regulatory process. Republican leaders were similarly skeptical of the draft bill, with concerns that the comprehensive regulatory regime would undermine innovation, and the Trump Administration has not endorsed the framework. Although some industry advocates praised the compromise approach, none of the major companies have endorsed the proposal.
Context – The Trump Administration’s commitment to AI investment and innovation has pushed global AI policy away from “safety” towards deregulation in most major markets. Even the EU is delaying some AI Act rules and exempting AI in industrial machinery. However, US voter polls show Democrats and Republicans, inundated by science fiction AI speculation, are worried and many US states are advancing regulatory proposals. Democratic officials are especially enthusiastic. In Congress, they have proposed a surge of AI legislation, including ideas for taxing and owning AI firms, regulating advanced models, and directing how the military uses the technology. And while most Republican officials are reticent about regulating, there is a cadre of conservatives, activists along with some Republican governors and Members of Congress, stoking AI fears and calling for regulation as well. The political resonance of aggressive AI proposals will seriously undermine moderate action, probably for three years at least, with the issue worth more as a political football than an accomplishment. But the industry should prepare for a major regulatory push should a unified Democratic federal government emerge in 2029.