December 16, 2024
This week decoded
This coming week should be the final week of the 118th Congress, assuming Congress can fund the government by its December 20 deadline. The House passed the FY 2025 National Defense Authorization Act (NDAA) by a 281-140 vote, with most Democrats voting against the measure’s transgender health care provision; the Senate is expected to pass the bill this week.
Looking ahead to the 119th Congress, Rep. Rep. Brett Guthrie (R-KY) was chosen by the GOP steering committee to lead the House Energy & Commerce Committee, with current Chair Cathy McMorris Rodgers (R-WA) retiring at the end of this Congress. The full Republican conference will next vote to ratify the steering committee selections.
Politico reported President Joe Biden is considering issuing an executive order to fast-track the construction of AI data centers, potentially using the Defense Production Act emergency powers to “allow data centers to exceed pollution limits, open federal lands to data center construction and give data centers priority access to available power supply.”
Read more below
Congress
Hearings
- Last week
- On December 11, the Senate Banking, Housing and Urban Affairs Committee held a hearing on CFPB Oversight in which CFPB Director Rohit Chopra said, “We’re scrutinizing reputation based algorithms and artificial intelligence.”
- This week
- On December 18, The House Administration Committee is scheduled to hold a hearing on “American Confidence in Elections: Prohibiting Foreign Interference.”
- On December 18, the House Judiciary Courts, Intellectual Property, and the Internet Subcommittee will hold a hearing on “IP and Strategic Competition with China: Part IV – Patents, Standards, and Lawfare.”
- Next week
- There are no relevant hearings scheduled next week.
Legislation
- The Senate passed by unanimous consent the “Detection Equipment and Technology Evaluation to Counter the Threat of Fentanyl and Xylazine Act of 2024 (DETECT Fentanyl and Xylazine Act of 2024)” which would require use of “technologies that use machine learning or artificial intelligence” and that the Under Secretary for Science and Technology follow the Artificial Intelligence Risk Management Framework (NIST AI 100-1) or any successor document published by the National Institute of Standards and Technology (NIST).
- Sens. James Lankford (R-OK), John Cornyn (R-TX), Mark Warner (D-VA), and Mark Kelly (D-AZ) introduced the “Enable IC Partnerships Act,” which would encourage acquisition leaders within the intelligence community to explore partnerships with federal lending agencies, such as the US Department of Defense Office of Strategic Capital, and private capital partnerships. It would also support talent and workforce development in technology-related fields, including computing, artificial intelligence, cybersecurity, and others. (Press release)
Correspondence
- Reps. Jay Obernolte (R-CA) and three additional Republican members of Congress sent a letter to the Federal Energy Regulatory Commission urging rules to allow the development of data centers directed connected to power plants, co-located AI data centers. (Reuters)(Axios)
- Rep. Tom Kean (R-NJ) sent letters to the CEOs of OpenAI, Google, Meta, Amazon, Anthropic, Microsoft, and Inflection AI, calling for requesting “a detailed overview of their efforts to prevent security breaches and safeguard AI technologies.” (Letters)(Press release)
Biden-Harris Administration
Consumer Financial Protection Bureau (CFPB)
- CFPB issued a proposed rule to amend Regulation V to apply FCRA to sensitive consumer information, including information sold by data brokers. The comment period ends March 3, 2025. (Proposed rule)
Department of Defense (DOD)
- DOD Chief Digital and Artificial Intelligence Office Radha Plumb announced the formation of an AI Rapid Capabilities Cell (AI RCC) to implement a “rapid experimentation approach” to “test and identify where these cutting edge technologies can make our forces more lethal and our processes more effective. But equally critically, the AI RCC will define the requirements for enterprise infrastructure and support scaled AI development. That includes compute, development, environment and AI ready data.” (Remarks)
Departments of Health and Human Services (HHS) and Defense (DOD)
- HHS and DOD published a final rule implementing parts of the Trusted Exchange Framework and Common Agreement (TEFCA) to amend information blocking regulations to facilitate information-sharing interoperability and access, exchange, and use of electronic health information. (Federal Register)
Department of Energy (DOE)
- DOE is reopening the public comment period on its September 12, 2024 request for information on the Frontiers in AI for Science, Security, and Technology (FASST) Initiative and “how DOE and its 17 national laboratories can provide a national AI capability in the public interest.” The new comment period ends February 17, 2025. (RFI)
Department of Commerce
- The National Telecommunications and Information Administration (NTIA) published a notice seeking public comment on “the potential writing of ethical guidelines for the use of ‘pervasive data’ in research. ‘Pervasive data’ refers to data about people gathered through online services…Such guidelines, if warranted, would detail how researchers can work with pervasive data while meeting ethical expectations of research and protecting individuals’ privacy and other rights.” (Federal Register)
Trump-Vance Transition
- President-elect Donald Trump announced Federal Trade Commissioner Andrew Ferguson to chair the Federal Trade Commission (FTC).
- Trump also nominated Mark Meador, a partner at law firm Kressin Meador Powers and former antitrust counsel to Sen. Mike Lee (R-UT) to serve as an FTC commissioner.
Noteworthy Quotes and Events
ADMINISTRATION
White House
- The White House released a readout of President Joe Biden’s virtual meeting with G7 leaders, stating, “Leaders also discussed addressing a range of global challenges, including non-market practices, climate change, artificial intelligence, and support for developing countries.” (Readout)
- On reports of an executive order on data centers, a White House spokesperson said, “This administration is continuing to work with all stakeholders to ensure the U.S leads the world in AI and AI data centers are powered by clean energy without raising electricity costs for consumers.” (PoliticoPro)
Consumer Financial Protection Bureau (CFPB)
- Director of the CFPB Rohit Chopra tweeted a link to his appearance on Marketplace saying, “Data brokers pull together massive amounts of data on us without our knowledge or consent. I joined Marketplace to discuss the CFPB’s new rule to stop these companies from selling your data to scammers, stalkers, and spies.”
Department of Energy (DOE)
- The Office of Inspector General released two reports on the mitigation of risk at the DOE Office of Intelligence and Counterintelligence. Special Project Report: The Department of Energy Should Invest in and Implement Enterprise-Wide Data Analytics to Identify and Mitigate Risk found DOE conducts risk assessments “in a fragmented fashion by aggregating risks identified by each element rather than by examining risks from an enterprise-wide perspective.” (Report) Audit Report: Progress is Needed to Support the Department of Energy’s Integration of Artificial Intelligence into Intelligence Activities found DOE was unable to meet most of the requirements under the Intelligence Authorization Act for Fiscal Year 2023 “until actions were taken by the Director of National Intelligence.” (Report)
- DOE published a press release celebrating the five U.S. Department of Energy (DOE) National Quantum Information Science Research Centers (NQISRCs) working to expand “the frontier of what’s possible in quantum computing, communication, sensing and materials in ways that will advance basic science for energy, security, communication and logistics.” (Press release)
Department of Defense (DOD)
- The Defense Science Board will hold a closed meeting on January 15, 2025 to discuss “Deliberate and vote on the classified findings and recommendations of the DSB Task Force on 21st Century Industrial Base for National Defense; Briefing from National Reconnaissance Office Director Christopher Scolese on his views of current NRO strategy, challenges, and priorities; Discussion to deliberate and vote on the findings and recommendations of the DSB Task Force on Balancing Security, Reliability, and Technological Advantage in Generative Artificial Intelligence for Defense; Discussion to deliberate and vote on the findings and recommendations of the DSB Task Force on Emerging Biotechnologies and National Security; and U.S. Transportation Command Commander Air Force Gen. Randall Reed on his views of current U.S. Transportation Command strategy, challenges, and priorities.”
Department of Commerce
- Alan Davidson, administrator of the National Telecommunications and Information Administration (NTIA) announced he would step down on January 20, 2025, stating, “It’s been an incredible honor and a privilege to serve alongside the men and women of NTIA at this moment and delivering this work. This is our generation’s big infrastructure moment, this is our chance to connect everybody in the country with what they need to thrive in the modern digital economy.” (PoliticoPro)
CONGRESS
Enable IC Partnerships Act
- Sen. James Lankford (R-OK) said, “Innovation is key to protecting America’s cybersecurity and national security. As adversaries from across the globe attempt to undermine the United States, our intelligence community needs to be prepared with the technology, training, and programs to stay one step ahead.” (Press release)
- Sen. John Cornyn (R-TX) said, “Artificial Intelligence, machine learning, and data sciences are on pace to revolutionize intelligence gathering and analysis. Through IC partnerships with federal lending agencies like DOD’s Office of Strategic Capital and fostering greater IC public-private partnerships, we can better equip collectors and analysts with the tools to meet workforce demand and strengthen our national security.” (Press release)
- Sen. Mark Warner (D-VA) said, “As Chairman of the Senate Intelligence Committee, I’m acutely aware of the challenges our Intelligence Community faces to combat the threats posed by our adversaries. As our adversaries rapidly advance their technological capabilities, it’s crucial that we streamline our processes in order to keep up. This legislation would help give the IC the support, funding, and flexibility needed better protect our national security.” (Press release)
- Sen. Mark Kelly (D-AZ) said, “Our intelligence community is stronger when they’re given the tools needed to anticipate national security threats. This bipartisan effort will make it easier for our intelligence agencies to leverage partnerships to secure state-of-the-art technology and talent, ensuring the U.S. maintains an edge over adversaries.” (Press release)
Miscellaneous
- Senate Majority Leader Chuck Schumer (D-NY) delivered remarks on the Senate floor on “Senate Republicans Walking Away from Negotiations on Bipartisan AI Legislation,” stating, “…no matter how difficult it may be, my commitment to members in both chambers remains steadfast – I will work with anyone, regardless of party, to get meaningful, sustainable, and transformational AI done. Transformational because of what AI could do, to cure heart disease, to educate young people around the globe, to deal with our climate crisis. And sustainable so that we have guardrails that prevent AI, if some bad force, whether it’s a country or rogue group get hold of it, we prevent them from doing bad things and keep AI sustainable. We must get both done. Our outline and our work are a good step in that direction. We must continue to move forward.” (Remarks)
- Schumer tweeted, “For over a year, I’ve worked with Senators of both parties to find a way forward on bipartisan AI legislation. But Senate Republicans have chosen to walk away. If we want America to lead the world in innovation—we can’t turn a blind eye to AI. I won’t walk away from AI talks.”
- Schumer also tweeted, “Today, I’ll meet with the President-elect’s nominee for Commerce Secretary—Howard Lutnick of NY It’s vital the next Commerce Secretary is willing to build on progress from the last few years and ensure the US out-competes the Chinese Communist Party on AI, semiconductors, & more”
- Rep. Josh Gottheimer (D-NJ) published a press release calling for the FBI, DHS, and FAA to brief the public on reports of unidentified drone sightings, saying, “New Jersey cannot become the wild west for drone activity — and Americans shouldn’t have to worry about what’s flying overhead, especially as technology like AI advances at an unprecedented clip.” (Press release)
- Senate Select Committee on Intelligence Chair Mark Warner (D-VA) released a statement on Open AI’s new safeguards against malicious misuse of AI products, stating, “I’m pleased to see OpenAI heed my call for additional safeguards as it releases powerful new features like video generation – including specific measures I have advocated for, including adding new detection mechanisms for violative outputs, clear mechanisms to identify and catalogue synthetic content, and public-facing reporting mechanisms for victims of impersonation campaigns and other Terms of Service violations to seek redress. Ultimately the efficacy of these new policies will be measured in the kinds of resources OpenAI invests in enforcing them, but I appreciate these new steps.” (Press release)
- Sen. Tommy Tuberville (R-AL) published an op-ed on AL.com saying, “AI is no longer something on the horizon, a thing of the future. AI is here, and here to stay. The implications of its introduction to the world will be massive. Conservatives shouldn’t shy away from it. We should embrace the possibilities that this technology can create for future generations. But we must make sure that our students know how to use it appropriately. Let’s give our kids a better world than we had, by giving them the tools, knowledge, and technology needed to succeed.” (Op-ed)
- Tuberville tweeted a link to his op-ed, saying, “AI learning tools cannot be a substitute for our children’s education – it should be used to aid their education.”
- Sen. Ted Cruz (R-TX) tweeted, “Big Tech companies have the ability and manpower to remove content almost instantaneously. It took 9 months for Elliston Berry’s AI deep-fake to be removed. The TAKE IT DOWN Act will force social media companies and similar websites to comply with users requests to remove nonconsensual imagery. The House must pass this important legislation before the new Congress.”
- Cruz also tweeted, “It shouldn’t take 9 months and a call from a sitting US Senator to remove AI deep-fake nude images from a social media platform of a 14 year old girl. Elliston Berry is the reason we introduced and passed the bipartisan TAKE IT DOWN Act. Nobody should ever have to experience what Elliston went through.”
- Cruz also tweeted, “Reports of AI deepfake explicit images have skyrocketed in the last year. 95% of internet deepfakes depict non-consensual intimate imagery — with the vast majority targeting women and girls. Congress must act and put the TAKE IT DOWN Act on the President’s desk.”
- Rep. French Hill (R-AR) said, “Fintech should be able to partner with banks in a safe and sound way and allow their knowledge of AI or fintech applications to either find new customers or serve customers better or do compliance in a more effective way,” Hill said. “That ought to be available to small- and medium-sized and regional banks, because that will make them more competitive.” (PoliticoPro)
- Sen. Mike Rounds (R-SD) tweeted, “Congratulations to Rep French Hill on his selection to be the next House Financial Services Committee Chair! Looking forward to continuing our work together on financial services issues – especially getting the Unleashing AI Innovation in Financial Services Act into law. Good things to come!”
- Rep. Tom Kean (R-NJ) tweeted, “Today I sent letters to the CEOs of major U.S. AI companies, urging them to take immediate action to address serious security breaches including data leaks and unauthorized access by foreign actors. These lapses threaten not only our technological leadership but also national security. It is crucial they take the necessary steps to secure their systems and protect user data from future threats. This will ensure we foster a culture of safety, security, and trust across the U.S. AI sector.”
- Sen. Elizabeth Warren (D-MA) tweeted a Washington Post article and commented, “The DeptofDefense awards billions in AI and cloud computing contracts to a few huge companies. All our eggs are in one giant Silicon Valley basket. My new bill ensures that DoD is making good deals that keep our data secure and our government resilient.”
- Rep. Yvette Clarke (D-NY) tweeted, “While SORA’s possibilities are exciting, its terrifying power to create unprecedentedly deceptive disinformation must be the focus of any conversation on this new AI tool. The pursuit of progress cannot overshadow our duty to American lives, our democracy, and truth itself.”
- Financial Services GOP tweeted, “The CFPB’s eleventh-hour final rule governing overdraft fees is a bad faith attempt to extend its authority based on faulty economics and threatens to harm the very consumers the agency is tasked with protecting. This is the latest in a series of last-minute efforts to assert the agency’s influence even as other regulators have vowed to halt rulemakings in anticipation of the coming administration. Today, Director Chopra showed why he is not fit to lead the CFPB into 2025.”
- House Financial Services Chair Patrick McHenry (R-NC) retweeted Financial Services GOP and commented, “An order to supervise Google, a proposed rule on data brokers, and now this. Director Chopra shows no signs of stopping his runaway regulatory agenda that ignores sound economics and harms consumers–despite Americans rejecting this Administration at the ballot box.”
- Rep. Mariannette Miller-Meeks (R-IA) tweeted, “Had a great meeting with Dexcom to discuss the future of AI in continuous glucose monitors and the importance of device interoperability.”
- Rep. Ben Cline (R-VA) tweeted, “China’s latest cyberattack on U.S. telecoms directly undermines our national security and threatens the privacy of all Americans. We must stand firm against the CCP’s aggression and protect Americans’ data.”
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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