This week in federal AI policy, the White House is expected to release its AI Action Plan, a reportedly 20-page document detailing federal restrictions on regulation and commitments to streamline innovation. President Trump will also announce Executive Orders related to high-profile issues such as data center development, export controls, and “woke” policies impacting AI innovation.  

Read more below

Congress

Hearings

• Last week
  • On July 16, the House Judiciary Committee Crime and Federal Government Surveillance Subcommittee held a hearing on Artificial Intelligence and Criminal Exploitation: A New Era of Risk.
  • On July 16, the Senate Judiciary Crime and Counterterrorism Subcommittee held a hearing on Too Big to Prosecute?: Examining the AI Industry’s Mass Ingestion of Copyrighted Works for AI Training.
• This week
  • On July 22, the House Homeland Security Cybersecurity and Infrastructure Protection Subcommittee will hold a hearing on Fully Operational: Stuxnet 15 Years Later and the Evolution of Cyber Threats to Critical Infrastructure.
  • On July 22, the House Oversight and Government Reform Cybersecurity, Information Technology, and Government Innovation Subcommittee will hold a hearing on Bipartisan Roundtable: Artificial Intelligence in the Real World.

Legislation

• The House passed the Consumer Safety Technology Act, sponsored by Rep. Darren Soto (D-FL), to direct the U.S. Consumer Product Safety Commission to explore the use of AI in their work through a pilot program and to direct the Department of Commerce and Federal Trade Commission to study and report on the use of blockchain technology and digital tokens.

• Sen. Amy Klobuchar (D-MN) introduced a bill to require the Election Assistance Commission to develop voluntary guidelines for the administration of elections that address the use and risks of artificial intelligence technologies. (Text)

• House Foreign Affairs Subcommittee on South and Central Asia Ranking Member Sydney Kamlager-Dove (D-CA), House Foreign Affairs Subcommittee on South and Central Asia Chair Bill Huizenga (R-MI), House Foreign Affairs Ranking Member Gregory Meeks (D-NY), and Rep. Jefferson Shreve (D-IN) introduced legislation to strengthen export controls enforcement on dual-use technologies sold abroad at the Bureau of Industry and Security (BIS). (Press release)

• Sens. John Barrasso (R-WY), Cynthia Lummis (R-WY), Mike Crapo (R-ID), John Curtis (R-UT) and Jim Risch (R-ID) introduced the American Voices in Federal Lands Act to prevent the Bureau of Land Management’s (BLM) electronic public comment system from being sabotaged by foreign adversaries and AI bots. (Press release)

Correspondence

• House Select Committee on China Chair John Moolenaar (R-MI) sent a letter to Commerce Secretary Howard Lutnick objecting to the resumption of H20 equivalent graphics processing units (GPU) sales to China and requesting a briefing on how the Department will handle potential export license applications for Nvidia’s H20 GPUs—an advanced AI processor previously banned from sale to China. (Press release)

• House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP) Ranking Member Raja Krishnamoorthi (D-IL) of the sent a letter to Secretary of State Marco Rubio requesting information about an apparent AI-generated deepfake campaign that impersonated the Secretary in outreach to high-ranking government officials and highlighting the threat posed by the CCP’s misuse of deepfake and other generative AI technologies. (Press release)

Publications

• House Science and Technology Chair Brian Babin (R-TX) published an op-ed in the National Review on America Must Remain the World Leader in Science and Technology, saying, “One of the most effective tools strengthened by [the One Big Beautiful Bill Act] is the Research and Development (R&D) tax credit. Far from being a loophole, this credit is a proven engine of innovation, job creation, and domestic investment. Making it permanent and more accessible will unleash a wave of private-sector growth, especially among small businesses and startups working on emerging technologies.” (Op-ed)

• Sen. Dave McCormick (R-PA) published an op-ed entitled “Pennsylvania led America’s industrial rise — now it will lead the AI revolution” in Fox News, highlighting the inaugural Pennsylvania Energy and Innovation Summit at Carnegie Mellon University. (Op-ed)

• Rep. Sam Liccardo (D-CA) published an op-ed in the Mercury News entitled “Democrats need an innovation agenda to win back Silicon Valley tech leaders,” saying, “Yes, we need public investment in basic science and research, but our tax code must acknowledge the primacy of private investment in technology development. We must prepare our workforce to use AI before we are supplanted by it; effective upskilling requires Congress to incentivize the private sector to invest in tools and teaching in our community colleges and universities. Climate mitigation at scale calls for reassessment of long-disfavored options, such as small modular reactors, and for eliminating regulatory barriers to expansion of the grid, transit and other infrastructure.” (Op-ed)

Trump Administration

White House

• The White House will reportedly release on Wednesday its AI Action Plan as a 20-page plan entitled “Winning the Race: America’s AI Action Plan.” The plan is expected to prohibit federal AI funds from going to states with restrictive AI laws; task the FCC to identify state AI laws that conflict with federal mandates under the Communications Act of 1934; direct the White House Office of Science and Technology Policy to issue a Request for Information to identify federal regulations that stifle AI innovation; commit to eliminating ideological bias and social engineering from federal AI tools; direct the National Institute of Standards and Technology to revise the AI Risk Management Framework to eliminate “references to DEI, misinformation, and climate change;” streamline permitting and accelerate deployment timelines on data centers; export U.S. technologies through “full-stack deployment packages” and international data center initiatives; counter Chinese influence in world bodies that set tech standards; launch a National AI Research Resource pilot in partnership with private sector tech firms; establish regional AI “Centers of Excellence;” promote open-source AI development; publish a national AI plan for research and development; promote AI adoption across the Department of Defense; and address challenges related to synthetic media. (Politico)

• President Trump will reportedly sign three Executive Orders this week “eliminating ‘woke’ AI; soliciting information on federal land to be used for data centers; and promoting AI exports.” (Politico)

Department of Education

• The Department of Education published a notice of proposed priority and definitions “designed to support efforts that expand student understanding of AI and its real-world applications. The priority will also promote the appropriate integration of AI into education, providing AI training for educators, and fostering early exposure to AI concepts and technology to develop an AI-ready workforce and the next generation of American AI innovators.” The comment period closes August 20, 2025. (Notice)

Commerce Department

• On August 1, the Bureau of Industry and Security will hold a meeting of the Emerging Technical Advisory Committee for ETTAC members and U.S. Government representatives to review updated technical data and policy-driving information.

National Institute of Standards and Technology (NIST)

• On July 16-17, the NIST Information Security and Privacy Advisory Board met to receive a briefing on NIST’s work in digital ledger technologies and an update on NIST post quantum cryptographic guidance, among other issues.

Noteworthy Quotes and Events

ADMINISTRATION

• Fed Governor Lisa Cook delivered a speech on AI: A Fed Policymaker’s View at the National Bureau of Economic Research, Summer Institute 2025: Digital Economics and Artificial Intelligence, saying, “I am constantly monitoring incoming data, the ever-evolving outlook, and a broad range of risks to both sides of the dual mandate. I tend to be cautiously optimistic when I anticipate what AI could bring to the economy, but much uncertainty remains. As I have laid out for my institution specifically and the economy broadly, AI is a technology that is rapidly evolving, and it is good to be humble about our understanding of its exact effects on our economy and the timing of those effects.” (Remarks)

CONGRESS

• In his opening statement at the Senate Judiciary Crime and Counterterrorism Subcommittee hearing on Too Big to Prosecute?: Examining the AI Industry’s Mass Ingestion of Copyrighted Works for AI Training, Committee Ranking Member Dick Durbin (D-IL) said, “While AI can be an incredible tool that unlocks further creativity, writers, artists, musicians, and others are rightfully concerned about what the technology will mean for their livelihoods. Should AI companies be able to use their materials freely, as ‘fair use?’ Or should they receive compensation when their works are used to train AI models?… How can creators compete with AI products that generate content at the push of a button—especially when that content might mimic or even reproduce their own works? These are just a few of the questions that we are going to consider in this hearing.” He also said, “As we try to find the right balance between promoting technological innovation, protecting the work of our nation’s creators, and continuing to incentivize creativity in the years to come, we must recognize that AI innovation and protection of intellectual property rights are not mutually exclusive. That is why it is troubling to hear stories about the steps Big Tech companies are taking to train their AI models on copyrighted materials without compensating the creators [of] those works.” (Press release)

• Ranking Member of the Senate Foreign Relations Committee Jeanne Shaheen (D-NH) delivered remarks on the Senate floor about the Trump Administration’s rescissions package and dismantling of the U.S. diplomatic corps and foreign assistance programs, saying, “Because whether we are combating unfair trade practices and the theft of intellectual property; or we’re stopping the flow of fentanyl into our communities; or protecting Americans from spying and cyberattacks; or helping U.S. companies stay ahead in developing batteries, electric vehicles and AI, the stakes are very high. And the threat to our prosperity and security is real. I don’t think most Americans want to live in a world where the Chinese Communist Party is driving the agenda. But instead of strength and focus, what we’ve seen from this Administration is a chaotic, haphazard retreat from the global stage.” (Press release)

• Sen. Chris Murphy (D-CT) delivered floor remarks on the President’s recissions package, saying, “Trump terminated tens of millions in projects to help upgrade Africa’s power grid. China’s not dumb. They know Africa’s economy is going to boom in the next fifty years. They want Chinese companies, not American companies to have relationships there. They know that many of the critical minerals that are going to be critical to AI and the future of defense come from Africa. They want better relations in Africa to corner those markets. So, what did they do? Trump pulled back $80 million. China stepped in and announced $50 billion in financing for economic development and infrastructure in Africa. Now, a lot of that is bluster and some of the financing is predatory. But it’s something. At a moment when America is just withdrawing from Africa.” (Press release)

• Senate Democratic Leader Chuck Schumer (D-NY) delivered Senate floor remarks on the Trump administration authorizing a contract for Elon Musk’s company to deploy Grok in a national defense capacity after the AI model displayed antisemitic rhetoric and Nazi propaganda, saying, “Just days after Elon Musk’s AI model, Grok, glorified Hitler, pushed Nazi propaganda, and spouted antisemitism, Elon Musk’s company was handed a $200 million DOD contract to deploy Grok in our national defense systems. Soon, the same AI model that called itself ‘MechaHitler’ and recommended a second Holocaust will be used in the Pentagon to ‘address critical national security challenges.’ This Musk contract is not just wrong, it is not just offensive. It’s dangerous. The Trump administration must explain how this happened, the parameters of the deal, and why they think our national security isn’t worth meeting a higher standard.” (Press release)

• Sen. Elizabeth Warren (D-MA) issued a statement saying, “It is shameful that even as American companies, small businesses, and universities wait months, if not years, to acquire chips for developing artificial intelligence, Nvidia and the Trump Administration are prioritizing sending these chips to the People’s Republic of China. Advanced chips are critical to our national security, and the Trump Administration rightfully banned Nvidia from shipping the H20 chip to the PRC just three months ago. Yet, true to form, the Trump Administration is now reversing itself and appeasing Nvidia’s CEO who attended the $1-million-dollar-a-head dinner at Mar-a-Lago in April and looking to cash in on the China market.” (Press release)

• Sen. Chris Coons (D-DE) issued a statement saying, “President Trump’s decision today hands China cutting-edge technology that Beijing will use to erase our competitive advantage in artificial intelligence, undermine our military, and outpace our economy. Thanks to the efforts of the Biden administration and bipartisan work in Congress, the United States was better positioned at the beginning of the year than any other country on the planet to lead the way on artificial intelligence, from chip design to applications. Now, President Trump is throwing that all away, giving China a tool that will strengthen their economy and military, while, just today, China announced it will restrict American access to critical battery technology and equipment we need for our own economy and security. The administration must immediately reverse this harmful decision and take steps to make sure its actions on AI actually match its tough-on-China rhetoric.” (Press release)

• Rep. Pat Fallon (R-TX) tweeted, “President Trump’s bold leadership is helping America win the AI race against China. We must slash bureaucracy, invest in tech, and back Trump’s plan to make sure we keep our edge.”

• Sen. Mark Warner (D-VA) tweeted, “AI slop <> lame Republican excuses Donald Trump has both houses of Congress. Instead of targeting law-abiding people who are living here legally, he should fix our broken immigration system.”

• Sen. Josh Hawley (R-MO) tweeted, “Josh Hawley: Meta ‘Willfully Pirating Droves of Copyrighted Content’ to Train AI Models”

• Hawley also tweeted, “AI companies are behind the largest intellectual property theft in HISTORY. We prosecute individuals for piracy, so why hasn’t Big Tech faced any consequences?”

• Sen. Jim Justice (R-WV) tweeted, “I’ve been preaching that the day is coming when we’ll have to choose between powering our homes or our jobs. AI is accelerating that day. Working families will pay the price if we don’t boost American energy production now.”

• Energy and Commerce Committee tweeted, “We cannot allow burdensome regulations to hold back the United States in the AI race against foreign adversaries. Supporting American AI is critical to our development and our national security.”

• Energy and Commerce also tweeted, “The Biden-Harris Administration’s burdensome regulations and anti-energy polices left America’s grid unprepared for today’s AI race. Thankfully, the Trump Administration is prioritizing American energy dominance, boosting the production of essential baseload power to ensure every American has access to reliable energy.”

• Sen. Dick Durbin (D-IL) tweeted, “Big Tech companies are training their AI models with copyrighted materials. This sort of conduct is likely illegal, according to a judge. Congress must regulate AI.”

• Sen. Dave McCormick (R-PA) tweeted, “If the U.S. does not lead the AI revolution on our terms, we will hand control of our infrastructure, our data, our leadership, and our way of life to the Chinese Communist Party. This is a competition that we have to win. Building is the key to unlocking the potential of AI.”

• House Foreign Affairs Committee tweeted, “The U.S. cannot allow China to take the lead on AI. This is a must-win arms race between democracy and autocracy that will impact generations to come.”

• Sen. Chris Murphy (D-CT) tweeted, “74% of teens use AI for friendship. Half talk to their AI friend EVERY DAY. One-third report the AI has said something that makes them uncomfortable. AI friendship bots are a freight train headed for our kids. It’s malpractice not to protect them.”

• Rep. Melanie Stansbury (D-NM) tweeted, “Remember when Elon Musk and his DOGE associates hacked and downloaded our data to train his private AI system? Well….they’re baaack…now charging the American taxpayers $200 million to sell AI products to the government.”

• Rep. Grace Meng (D-NY) tweeted, “Not even one week after Grok’s antisemitic outburst, DeptofDefense announced it will pay xAI $200 million to use the chatbot. Instead of rewarding Grok for spreading hate online, we should be using that money for something productive, like establishing guardrails for AI or building systems to combat online hate.”

• Rep. Beth Van Duyne (R-TX) tweeted, “American energy dominance will deliver advanced manufacturing and ensure the United States is at the forefront of AI infrastructure. This is what winning the future looks like!”

• Rep. Pat Harrigan (R-NC) tweeted, “The AI race is the new space race, and POTUS just committed $90 billion to it through major investments in AI and energy. He is sending a clear message to China that American leadership in critical technology is back.”

• Rep. Ayanna Pressley (D-MA) tweeted, “We cannot allow AI to go unchecked, unregulated, and be the latest chapter in America’s history of exploiting marginalized groups. That’s why we must invest in an approach rooted in equity that protects the rights of everyone.”

What I’m Reading This Week

• China Is Spending Billions to Become an A.I. Superpower, The New York Times

About Zero One Strategies

Zero One Strategies is a boutique 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, 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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