Good morning, friends.
Artificial intelligence (AI) has become one of the most prominent policy issues on Capitol Hill, as policymakers grapple with questions about AI safety, national security, innovation, consumer protection, intellectual property, and the growing patchwork of state-level regulation. Policymakers are also increasingly focused on the infrastructure supporting AI development, including the energy and data center capacity needed to power increasingly sophisticated models.
The debate has grown more urgent as leading AI companies and technology executives are increasingly calling for greater regulatory clarity and, in some cases, targeted federal rules governing the development and deployment of advanced AI systems. At the same time, the limited number of legislative days remaining in the 119th Congress is constraining the opportunity for Congress to reach agreement on federal AI policy while the midterm elections – which are less than 50 days away – are incentivizing partisan rhetoric instead of bipartisan compromise.
Below, we review congressional action on AI during the 119th Congress and assess the key issues that could shape the debate in 2027.
Congressional Action on AI and Data Centers
In 2024, then-Senate Majority Leader Chuck Schumer (D-NY) established a bipartisan Senate AI Working Group, including Senators Todd Young (R-IN), Mike Rounds (R-SD), and Martin Heinrich (D-NM). The group developed a bipartisan AI policy framework focused on maintaining U.S. leadership in AI innovation, addressing national security implications, supporting research and development, and establishing safeguards to mitigate potential risks associated with the technology.
The House also established the Speaker’s AI Task Force, led by Representatives Jay Obernolte (R-CA-23) and Ted Lieu (D-CA-36). The task force’s 2024 report examined how Congress could maintain American leadership in AI while addressing the technology’s implications for areas including education, healthcare, the workforce, and national security.
In the 119th Congress, lawmakers have introduced and considered numerous AI-related bills covering issues ranging from AI safety and innovation to national security, intellectual property, workforce development, children's online safety, and government use of AI. Although several targeted AI measures have advanced, particularly in defense applications and the government's use of AI, Congress has not reached agreement on a comprehensive federal framework governing the development and deployment of AI.
The Senate Commerce Committee, chaired by Senator Ted Cruz (R-TX), has been a central venue for the debate. The committee has considered a range of targeted AI legislation, including measures addressing children's use of AI chatbots and AI-related privacy and safety issues. For example, earlier this year, the Senate Committee advanced Senator Blackburn’s (R-TN) Kids Online Safety Act, which aims to protect children under 13 from online harms of covered platforms, including AI chatbots, by establishing guardrails for use and a duty of care for technology companies. The bill is now waiting for full Senate consideration.
The committee has also continued to debate broader questions surrounding AI safety and federal oversight. In September, Ranking Member Maria Cantwell (D-WA) called for stronger federal guardrails for testing and releasing frontier AI models, while Chairman Cruz and Cantwell continued discussions over how legislation should balance AI safety with protections for speech, innovation, and government-industry engagement. However, the committee has repeatedly delayed votes on AI legislation because policymakers and industry disagree on the right approach.
Congress has also debated how to regulate data centers, specifically who should bear the additional grid infrastructure costs that power AI. The House overwhelmingly passed the bipartisan Ratepayer Protect Act, which would require data centers to pay the full cost of the grid infrastructure upgrades needed to meet their electricity and water demands. This bill would codify a White House initiative that seeks to require companies to cover energy and infrastructure costs to protect American consumers from higher electricity and water bills driven by increased use and demand from data centers and AI companies. Senator John Thune (R-SD) has said that the Senate may vote on this bill this week, potentially giving Republicans a legislative win on the issue before the midterm elections.
A significant policy debate during the 119th Congress has centered on the appropriate role of states in regulating AI. During consideration of the 2025 budget reconciliation legislation, House lawmakers advanced language that would have restricted states from enforcing certain AI regulations for 10 years. The proposal generated significant opposition from state officials and Democrats in Congress, while its proponents argued that a consistent national approach was necessary to prevent a fragmented regulatory environment. The Senate ultimately did not retain the provision in the final reconciliation legislation.
The debate over federal preemption remains unresolved and is likely to be one of the most consequential outcomes of any future federal AI legislation. Policymakers continue to weigh the benefits of a national framework against arguments that states should retain authority to address emerging AI-related risks, particularly in areas where Congress has not established federal standards.
Republican and Democratic Approaches
Republican policymakers have generally emphasized the importance of avoiding regulations that could unnecessarily constrain AI development and U.S. competitiveness with other countries, particularly China. Many Republicans have nevertheless acknowledged a federal role in establishing targeted rules or safeguards, emphasizing innovation and limiting regulatory burdens. President Donald J. Trump and his Administration remain the most vocal pro-AI and data center voices in Washington.
Democratic policymakers have generally placed greater emphasis on establishing federal guardrails addressing AI safety, consumer protection, transparency, privacy, civil rights, and accountability. There is also significant debate within the Democratic caucus over the appropriate scope of federal regulation and how aggressively Congress should address the risks associated with increasingly capable AI systems, including proposals to halt development altogether.
If Democrats regain control of the House of Representatives, House Democratic Leader Hakeem Jeffries (D-NY-8) has said AI policy could be a major legislative priority. In September 2026, Jeffries called for “decisive action” on AI safety and said Congress should consider measures to slow the pace of AI development in response to public-safety concerns. He has also emphasized the need for a bipartisan and comprehensive approach and expressed support for drawing on the bipartisan House AI Task Force model.
Jeffries has opposed a blanket moratorium on state AI regulation, instead emphasizing the need to consider state and local approaches as Congress develops a federal framework. This approach differs from Speaker Mike Johnson (R-LA-4), who has generally emphasized maintaining U.S. leadership in AI by limiting regulatory barriers to innovation while relying on existing regulatory structures and industry self-regulation to address emerging risks.
Outlook for 2027
The remaining legislative calendar will limit Congress's ability to resolve the broader AI policy debate before the end of the 119th Congress. Nevertheless, AI provisions could continue to move through narrower legislative vehicles, including the Fiscal Year 2027 appropriations process and the National Defense Authorization Act, particularly on issues involving federal AI procurement, national security, research and development, and government use of AI.
Looking ahead to 2027 and the incoming Congress, the outcome of the November midterm elections will shape future congressional leadership, committee jurisdictions, and legislative priorities governing the next phase of the AI debate. Regardless of the balance of power, several issues are likely to remain central to congressional discussions, including federal preemption of state AI laws, AI safety and testing requirements, national security, children's online safety, data center and energy infrastructure, transparency, and the government's role in regulating or overseeing advanced AI systems.
The central policy question for the next Congress will be how to establish a federal framework that addresses emerging AI risks while maintaining U.S. technological leadership and providing greater certainty for businesses, consumers, and state and local governments.
We will closely monitor this issue through the rest of this year and throughout the 120th Congress. We look forward to working with you to engage Congress and the administration on your policy priorities related to technology and AI.
Sincerely,
Bridge Public Affairs
###