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January 27, 2025

This week decoded

On his first day in office, President Trump repealed Biden’s 2023 Executive Order on AI, followed later in the week with three executive announcements: an Executive Order on Removing Barriers to American Leadership in Artificial Intelligence; an Executive Order establishing a President’s Council of Advisors on Science and Technology; and the creation of a partnership between OpenAI, Softbank and Oracle to invest up to $500 billion in AI infrastructure. Elon Musk, advisor to President Trump, publicly cast doubt on the partnership’s investment capabilities in a series of high-profile tweets.

Multiple Senate Committees considered the confirmation of Trump cabinet nominees, with hearings and Senate confirmation votes continuing next week.

Read more below

Congress

Hearings

  • Last week
    • On January 22, the House Homeland Security Committee will hold a hearing on Unconstrained Actors: Assessing Global Cyber Threats to the Homeland. Reps. Carlos Gimenez (R-FL), Dan Goldman (D-NY), and Marjorie Taylor Greene (R-GA) asked about AI.
  • This week
    • On January 28, the Senate Armed Services Committee will hold a hearing on Defense Innovation and Acquisition Reform.On January 29, the Senate Commerce, Science and Transportation Committee will hold a hearing on the nomination of Howard Lutnick to be Commerce Secretary.
    • On January 30, the Senate Foreign Relations Committee will hold a hearing on The Malign Influence of the People’s Republic of China at Home and Abroad: Recommendations for Policy Makers.

Legislation

  • Sens. Todd Young (R-IN), Ted Cruz (R-TX), and Amy Klobuchar (D-MN) and Reps. Madeleine Dean (D-PA), María Elvira Salazar (R-FL), August Pfluger (R-TX), Stacey Plaskett (D-VI), Vern Buchanan (R-FL), and Debbie Dingell (D-MI) reintroduced the Tools to Address Known Exploitation by Immobilizing Technological Deepfakes on Websites and Network (TAKE IT DOWN) Act. (Senate Text)(House Text)

Correspondence

  • There was no relevant correspondence this week.

Reports

  • The House Budget Committee released a commissioned CBO report on the impact of AI on the federal budget and issued a press release connecting President Trump’s Executive Order on the Department of Government Efficiency (DOGE) with the CBO report’s findings, “Earlier this week, President Trump signed an executive order officially establishing the Department of Government Efficiency (DOGE) to modernize and streamline the federal government. It is anticipated that key technologies like artificial intelligence (AI) will help maximize government productivity while reducing government spending. However, in order to use these revolutionary technologies to ensure sound fiscal governance, much research needs to be done on how to best apply AI. In order to give Congress a better understanding of the benefits of AI the House Budget Committee commissioned the first-ever Congressional Budget Office (CBO) report on AI. In a new era of Republican leadership, AI and DOGE will be critical to understanding the implications of technology’s impact on the federal government, which is now larger than ever.” (Report)(Press release)
  • The Senate Finance Committee released Treasury Secretary-nominee Scott Bessent’s answers to committee questions for the record.
    • Senate Finance Ranking Member Ron Wyden (D-OR): “AI-driven data center expansion and broad-based electrification will further drive sustained electricity demand growth and the need for quickly deployable electric generation and storage. Modern digital technologies rely on modern energy technologies. Do you think the U.S. can achieve energy dominance if it doesn’t lead on batteries, critical mineral production, solar manufacturing, and other key energy technologies?”
      • Bessent: “The world’s thirst for energy will continue unabated. The United States’ power needs for AI and data centers will stress supply, with projections that they will increase from 3 percent of total U.S. power consumption in 2022 to 8 percent by 2030. In addition, any increases in electric vehicle use will put even more pressure on the grid. The United States should be pursuing an all-of-the-above energy strategy; economic security cannot be achieved without affordable, reliable, and secure energy. While many of these renewable technologies were invented in the United States, manufacturing was offshored to the point that our biggest economic adversary, China, now controls the supply chains for many important technologies. Permitting reform is key; it will allow us to extract and process our own minerals and decrease our dependence on foreign sources of energy from China.” (QFRs)

Trump – Vance Administration

White House

  • President Trump issued an Executive Order on Removing Barriers to American Leadership in Artificial Intelligence that “directs the development of an AI Action Plan to sustain and enhance America’s AI dominance, led by the Assistant to the President for Science & Technology, the White House AI & Crypto Czar, and the National Security Advisor” and “directs the White House to revise and reissue OMB AI memoranda to departments and agencies on the Federal Government’s acquisition and governance of AI to ensure that harmful barriers to America’s AI leadership are eliminated.” (Executive Order) (Fact sheet)
  • Trump issued an Executive Order establishing a President’s Council of Advisors on Science and Technology (PCAST) of 24 non-Federal members with “diverse perspectives and expertise in science, technology, education, and innovation.” (Executive Order)
  • Trump announced a joint venture from OpenAI, Softbank and Oracle, called “Stargate,” which will collectively commit an initial investment of $100 billion, for a potential total $500 billion, in AI infrastructure investments, including data centers and energy development in the U.S. (AP)

Department of Homeland Security (DHS)

  • DHS issued a directive prohibiting the use of AI in certain activities, including “relying on outputs of AI as the sole basis for a law enforcement action…, a civil enforcement action…, or denial of government benefits;” “using data associated with the use of AI at DHS, or deploying AI, to make or support decisions based on the unlawful or improper consideration of race, ethnicity, gender, national origin, religion, sexual orientation, gender identity, age, nationality, medical condition, disability, emotional state, or future behavior predictions;” “improperly profiling, targeting, or discriminating against any individual or entity based on the individual characteristics identified above or in retaliation for exercising Constitutional rights;” and “using AI for unlawful or improper systemic, indiscriminate, or large-scale monitoring, surveillance, or tracking of individuals.” (Directive)

U.S. Trade Representative (USTR)

  • On March 11, USTR is scheduled to hold a public hearing on China’s Acts, Policies, and Practices Related to Targeting of the Semiconductor Industry for Dominance. 
  • On February 19, USTR is scheduled to hold an annual review of the global state of intellectual property.

Noteworthy Quotes and Events

ADMINISTRATION

White House

  • In response to the announcement of the Stargate Project, Elon Musk, advisor to President Trump, tweeted, “They don’t actually have the money.”

  • Retweeting a headline about Stargate “running on hopes and hot air,” Musk tweeted, “Exactly.”

Commodity Futures Trading Commission (CFTC)

  • CFTC Commissioner Kristin Johnson delivered remarks at the University of Chicago Law School on Charting the Future of Financial Regulation. On AI, she said, “Attendant risks associated with the increase in use of AI, however, deserves equal attention, particularly for regulators tasked with safeguarding the integrity and stability of financial markets and the global economy. In testimony before Congress and academic work prior to my service at the Commission, I have encouraged regulators and market participants to also consider the following risks fraud and market manipulation, bias and discrimination, and privacy and data protection risks… to that end, it will be imperative for regulators to understand, track, and be poised to address emerging cybersecurity, third-party, concentration, and human capital risks.” (Prepared remarks)

  • CFTC Commissioner Kristin Johnson delivered remarks at the Global Blockchain Business Council in Davos on Collaboration for the Intelligent Age, calling for “multi-stakeholder dialogues” on artificial intelligence and blockchain technologies, including “deeper learning and enhanced dialogue” and “enhanced supervisory resources.” (Prepared remarks)

CONGRESS

Executive Order on AI

  • Sen. Ed Markey (D-MA) tweeted, “Trump’s reversal of the Biden administration’s AI agenda may usher in a ‘Golden Age’ for tech billionaires’ bank accounts, but it will be a Dark Age for workers, marginalized communities, and the environment.”

  • Rep. Jay Obernolte (R-CA) tweeted, “I commend President Trump for making the development and deployment of artificial intelligence a top priority for the United States. Advancing AI technology is critical for maintaining our nation’s global leadership and ensuring our economic and national security. I’m looking forward to working with David Sacks and Michael Kratsios as we shape comprehensive and forward-thinking AI policy. I encourage them to use the recommendations in the recent House AI Task Force report as a resource as we collaborate in developing a robust framework that maintains America’s leadership in this revolutionary technology. Together, we can ensure that AI innovation serves the best interests of the American people.”

  • Rep. Raja Krishnamoorthi (D-IL) tweeted, “When we talk about building an economy of the future, that means supporting American innovation and outworking our global competitors. That’s why we must responsibly utilize AI, blockchain, and other advanced tech to stay at the cutting edge.”

  • Rep. Vern Buchanan (R-FL) tweeted, “President Trump’s recent AI executive order will establish American dominance in AI for years to come. I look forward to working with the new Trump administration to advance policy that will allow AI to thrive without unnecessary constraints.”

Stargate Project

  • In Senate floor remarks, Senate Minority Leader Chuck Schumer (D-NY) said, “Yesterday, a group of AI and tech companies announced their pledge to invest as much as $500 billion to ramp up our nation’s AI and data center infrastructure. Of course, if AI becomes one of the central technologies of our lives as is expected, we must build the capacity to support that demand, no question about it. But already, President Trump is tying himself into knots and talking out of both sides of his mouth. On one hand, he goes on and on about how we need more power, we need more electricity, to meet the demands of AI. And on the other hand, he spent his first day in office proposing executive orders that cut clean energy investments, halting wind and solar, and putting those jobs at risk. These AI data centers will depend on more clean energy production and transmission, and cutting clean energy will cut a good chunk of the new energy that’s about to come on board. So, for President Trump to cut clean energy investments is tantamount to cutting AI’s potential. One hand doesn’t seem to know what the other hand is doing. If President Trump wants to help AI’s growth instead of hurt it, he should revoke his promise to kill the clean energy jobs we are going to need to support America’s energy needs.” (Press release)

  • House Science, Space, and Technology Committee Chair Brian Babin (R-TX) issued a press release saying, “As AI innovation rapidly progresses across the globe, it is essential for the United States to solidify its position at the forefront. President Trump’s announcement represents a significant step in the right direction, unleashing the talent and resources of our private industry right here at home. As we have seen over the past four years, overregulation and the threat of overregulation by the federal government only slows progress. This support from the Administration highlights the importance of fostering strong partnerships between the government and private industry, enabling a collaborative environment where innovation can thrive. I am confident these critical investments by the private sector will advance progress and help us maintain our status as the world leader in artificial intelligence without falling behind.” (Press release)

  • Sen. John Cornyn (R-TX) tweeted, “Grateful for the leadership of POTUS in bringing private investment to Texas and supercharging the AI industry in the Lone Star State.   This investment will help the U.S. & Texas maintain the lead in technology & AI innovation.”

  • Sen. Todd Young (R-IN) tweeted, “It is critical that America leads the future on AI. This is the type of private investment needed to maintain U.S. leadership.”

  • Sen. Mike Rounds (R-SD) tweeted, “This is exactly the type of investments we need in AI infrastructure, utilizing private investments to keep America on top. AI has the potential to improve the quality of life for every American and save taxpayer dollars. Thank you President Trump!”

  • Sen. Lindsey Graham (R-SC) tweeted, “I’m very excited about President Trump’s announcement of a massive AI investment in the United States. This will give America an edge against China and other competitors. In many ways, AI is the future of the economy, warfare and healthcare. I’m glad to see President Trump aggressively pursuing a winning strategy in the AI space.”

  • Rep. Jason Smith (R-MO) tweeted, “For too long, adversarial nations, like China, have dominated the artificial intelligence field. Today, President Trump is shepherding in a new era of American leadership in AI. Stargate will support American companies competing in the modern economy and create good paying jobs here at home. Promises made, promises kept!”

Miscellaneous

  • Senate Minority Leader Chuck Schumer (D-NY), when asked in Senate Democratic Caucus weekly press conference about the future of the AI Safety Institute, said, “Yeah, look, I believe in the AI Safety Institute. I believe in it. We’re working with our Republican colleagues to try and have a good, good legislation that allows innovation in AI but has safeguards to prevent the very bad things from happening.”

  • Schumer tweeted, “If President Trump wants to help AI’s growth instead of hurt it, he should revoke his promise to kill the clean energy jobs we are going to need to support America’s and AI’s energy needs.”

  • Schumer also tweeted, “Trump goes on and on about how we need more power and electricity to meet the demands of AI data centers. But he’s also cutting clean energy investments—and it’s tantamount to cutting AI’s potential. One hand doesn’t seem to know what the other hand is doing.”

  • Schumer also tweeted, “President Trump is tying himself into knots and talking out of both sides of his mouth. On one hand, he goes on and on about how we need more power and electricity to meet the demands of AI data centers. On the other, he spent his first day halting clean energy projects that produce low cost and reliable power and putting those jobs at risk.”

  • On Trump rescinding the Biden AI EO, Rep. Bill Foster (D-IL) tweeted, “Our government has a responsibility to protect Americans from the dangers and economic disruption of AI. The fact that Trump revoked one of the Biden Administration’s first steps to protect people from AI is not a good sign. We must protect our leadership in AI by responsibly regulating this new and high-powered technology.”

  • Sen. Mike Rounds (R-SD) tweeted, “I had a fascinating meeting with RFK Jr. today ahead of his committee hearings. We had an excellent discussion on the need to incorporate AI in our health care. We agree that improving quality of life is critical and that AI can help in the development of vaccines as well as curing chronic illnesses in the near future. We also had a very frank discussion about South Dakota farmers and ranchers being concerned on any actions impacting their ability to feed and fuel the world that the Secretary of HHS might have a role in.”

  • Rep. Julie Fedorchak (R-ND) delivered her first speech on the House Floor on “North Dakota’s priorities, her goals for the 119th Congress, and the need to unleash American energy,” stating, “Our two biggest industries in the state are Agriculture and Energy. And we are very proud of those, but we have so much other innovation taking place—autonomous systems, artificial intelligence, defense technology, and more.”  (Press release)

  • Rep. Valerie Foushee (D- ) tweeted, “AI has the potential to improve rail safety, but needs to be utilized in conjunction with rail safety professionals, not in place of them. At the TransportDems hearing, I asked experts about how they’re ensuring AI-facilitated data is being used to support rail safety workers.”

  • Rep. Dan Crenshaw (R-TX) tweeted, “This week’s SITREP: Biden pardons his family. Trump secures the border, revitalizes energy, and strengthens U.S. AI leadership. Marco Rubio steps in as Secretary of State, and SpaceX launches two lunar landers. All this and more—your one-stop shop for real news and straight forward analysis on the latest moves shaping America’s future.”

  • Sen. John Cornyn retweeted a Wall Street Journal article, “A South Carolina power provider is counting on AI demand to restart construction on two nuclear reactors.”

  • Sen. Angus King (I-ME) tweeted, “I’m all for finding efficiencies where we can, but we can’t leave it to AI to determine whether veterans receive the benefits and health care they earned. I made clear to VA nominee Doug Collins that our veterans deserve better than machines making their claims decisions.”

  • Sen. Bill Cassidy (R-LA) tweeted, “DougCollins will be a fabulous Secretary of the VA, and he has my support. I look forward to working with him on ways to use AI to make sure our veterans have the best care possible.”

  • Rep. Michael McCaul (R-TX) tweeted, “The future of warfare, economics, and daily life all depend on high-tech industries like semiconductors and artificial intelligence. That’s why I chair the AI Caucus and why I founded the Congressional High-Tech Caucus more than a decade ago — because our advancements in these fields will determine whether our nation leads or shrinks back on the world stage.”

  • Retweeting remarks about COVID-related AI tools, Rep. Warren Davidson (R-OH) tweeted, “If we had a dystopian government, this is the sort of project they would be promoting. Maybe coupled with a Central Bank Digital Currency, digital ID, and a surveillance state.”

  • Rep. Troy Balderson (R-OH), as chair of the House Energy Action Team (HEAT), issued a press statement on a HEAT-sponsored energy roundtable saying, “America’s energy demand is at an all-time high. We have the capacity to fuel the AI boom happening in Central Ohio and across the country and provide critical energy supplies to our allies in Europe and across the globe. The past four years have shown how poor policymaking can undermine our energy security. When our domestic energy sector faces uncertainty and hostility from Washington, our adversaries abroad benefit while American consumers pay the price. Now that President Trump is back in office, Republicans have the incredible opportunity to lead on energy policy and get our country back on track.”

Highlights of the Week

What I’m Reading This Week

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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