This week decoded

Congress returned from August recess and immediately began considering AI-related policy across multiple sectors, including healthcare, defense, speech, safety, fraud, and global competition.

The White House announced a new Presidential AI Challenge for student innovators. The NSF announced a solicitation for proposals to establish the National Artificial Intelligence Research Resource Operations Center.

Read more below

Congress

Hearings

• Last week
  • On September 3, the House Energy and Commerce Subcommittee on Health held a hearing on Examining Opportunities to Advance American Health Care through the Use of Artificial Intelligence Technologies.
  • On September 3, the House Judiciary Committee held a hearing on Europe’s Threat to American Speech and Innovation.
• This week
  • On September 10, the Senate Commerce, Science and Transportation Science, Manufacturing, and Competitiveness Subcommittee holds a hearing on Winning the Race: America’s AI Action Plan.
• Next week
  • On September 18, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on Unlocking the Next Generation of AI in the U.S. Financial System for Consumers, Businesses, and Competitiveness.

Legislation

• Sen. Jim Banks (R-IN) and Elizabeth Warren (D-MA) introduced the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN AI) Act, as an amendment to the National Defense Authorization Act (NDAA), to require U.S. AI chipmakers prioritize domestic orders for advanced processors before supplying them to foreign customers. (Text)

• Sen. John Husted (R-OH) introduced S. 2714 to require AI chatbots to implement age verification measures and establish certain protections for minor users. (Text)

• Rep. Ted Lieu (D-CA) introduced the Healthcare Enhancement and Learning Through Harnessing Artificial Intelligence (HEALTH AI) Act to direct the Secretary of Health and Human Services to establish a grant program to facilitate research regarding the use of generative artificial intelligence in health care. (Text)

• Rep. Raja Krishnamoorthi (D-IL) introduced the No Advanced Chips for the CCP Act to require congressional approval for the export of advanced artificial intelligence semiconductors to the People’s Republic of China. (Text)

• Reps. Vern Buchanan (R-FL) and David Schweikert (R-AZ), with Aaron Bean (R-FL), Randy Feenstra (R-IA), Nathaniel Moran (R-Texas), Adrian Smith (R-NE) and Claudia Tenney (R-NY), introduced the Digital Evaluation for Tax Enforcement and Compliance Tracking (DETECT) Act to require the Government Accountability Office (GAO) to submit a report to the House Ways and Means Committee and the Senate Finance Committee on the potential of artificial intelligence to assist the IRS in detecting tax fraud. (Text)

• NDAA update: The National Defense Authorization Act (NDAA) is an annual must-pass bill that frequently contains defense-related and non-defense-related provisions on emerging technology. The Senate and House are currently considering different versions of the bill. The Senate voted to open debate last week and accepted an initial bipartisan package of 49 uncontroversial amendments and will consider a second tranche of amendments, as well as decide how to approach votes on the additional 700+ standalone amendments. In the House, the Rules Committee will meet on Monday to set the parameters for floor debate and decide which of the 1,000+ amendments will receive a vote on the floor.

Correspondence

• Vice Chair of the Senate Select Committee on Intelligence Mark Warner (D-VA), Senate Minority Leader Chuck Schumer (D-NY), Ranking Member of the Senate Armed Services Committee Jack Reed (D-RI), Ranking Member of the Senate Foreign Relations Committee Jeanne Shaheen (D-NH), Ranking Member of the Senate Appropriations Subcommittee on Defense Chris Coons (D-DE), and Ranking Member of the Senate Banking Committee Elizabeth Warren (D-MA), sent a letter to President Trump urging him to reverse his recent decision to allow AMD and Nvidia to sell advanced AI semiconductor chips to the People’s Republic of China (PRC) in exchange for a fee. (Letter)

• Sen. Josh Hawley (R-MO) sent a letter to Meta CEO Mark Zuckerberg demanding the company provide the Senate Judiciary Subcommittee on Crime and Counterterrorism with all relevant documents and communications related to reporting that its AI chatbots engage children in romantic and sensual online exchanges. (Letter)

• House Oversight and Government Reform Subcommittee on Cybersecurity, Information Technology, and Government Innovation Chair Nancy Mace (R-SC) sent a letter to Gil West, Chief Executive Officer of Hertz Global Holdings, Inc., requesting a staff briefing regarding Hertz’s AI scanning technology, as part of her investigation into the use of AI that could impact federal agencies’ regulatory responsibilities and procurement practices for renting cars for official business. (Letter)

Publications and Events

• Sen. Amy Klobuchar (D-MN) published an op-ed in The New York Times entitled “What I Didn’t Say About Syndney Sweeney” in which she describes “her recent experience being deepfaked, the risks of AI-generated videos, and the need to put in place rules of the road, including creating protections for those who have their voice and likeness replicated through AI without their permission.” (Op-ed)

Trump Administration

White House

• First Lady Melania Trump and OSTP Director Michael Kratsios held a meeting of the Artificial Intelligence Education Task Force, at which she announced the Presidential AI Challenge, in which “student participants will complete a project that involves the study, development, or use of an AI method or tool to address community challenges, while educators will focus on creative approaches to teaching or using AI technologies in K-12 learning.” (Announcement)(AI Challenge)

Federal Trade Commission (FTC)

• The Wall Street Journal reports the FTC plans to study the impact of AI chatbots on children’s mental health and will request documents from AI tech companies. (WSJ)

National Science Foundation (NSF)

• NSF announced a solicitation for proposals to establish a National Artificial Intelligence Research Resource Operations Center (NAIRR-OC), specifically to establish a community-based center that will lead the development of the overarching framework, operations strategy and management structure. (Press release)

Noteworthy Quotes and Events

ADMINISTRATION

White House

• First Lady Melania Trump said, “I predict AI will represent the single largest growth category in our nation during the Trump Administration—and I won’t be surprised if AI becomes known as the greatest engine of progress in the history of the United States of America. But, as leaders and parents we must manage AI’s growth responsibly. During this primitive stage, it is our duty to treat AI as we would our own children—empowering, but with watchful guidance. We are living in a moment of wonder, and it is our responsibility to prepare America’s children.” (Press release)

• The White House tweeted, “FLOTUS hosts White House Task Force on AI Education, encouraging focus for America to lead. ‘We must manage AI’s growth responsibly. During this primitive stage, it is our duty to treat AI as we would our own children — empowering, but with watchful guidance.’”

• White House AI & Crypto Czar David Sacks tweeted, “Thank you to the First Lady Melania Trump for prioritizing AI education for all of America’s school children. Teaching AI skills is the ultimate provider of equality of opportunity and ensures that America remains globally competitive throughout this century.”

Department of Energy

• DOE Secretary Chris Wright tweeted, “The Presidential AI Challenge fosters participation in harnessing AI use in a safe and meaningful way, especially in educating our youth. This task force is imperative and FLOTUS’ work here is inspiring!”

CONGRESS

AI in Medicare

• Sen. Chris Murphy (D-CT) tweeted, “Another example of Trump’s corruption you might have missed: Artificial intelligence systems designed by billionaire tech CEOs should not be in charge of deciding what Medicare services seniors get. But that’s exactly what Trump is proposing to make his AI industry allies rich.”

• Sen. Patty Murray (D-WA) tweeted, “Trump & Republicans want to let private AI companies decide if Medicare patients actually need their doctor-recommended treatments so they can turn a profit.   This admin is trying to use AI to cut Medicare benefits & stop seniors from getting the health care they need. NO WAY.”

• Sen. Mark Kelly (D-AZ) tweeted, “Medicare is testing AI in 6 states, including Arizona, to decide who gets care. Over a million Arizonans count on Medicare. Under Trump and RFK Jr.’s plan, AI companies will profit off denying care to seniors. This is wrong. Seniors deserve better.”

• Sen. Ruben Gallego (D-AZ) tweeted, “The Trump administration wants to let private AI companies, not doctors, decide if Medicare patients get covered for procedures like spine surgeries or steroid injections. These companies have a financial incentive to deny care. I won’t let Arizona seniors be used as guinea pigs in this 6 year experiment.”

• Sen. Bernie Sanders (I-VT) tweeted, “No, President Trump. Forcing seniors with traditional Medicare to get prior approval from AI companies before they can receive the health care they need won’t make America healthy again. It will make AI companies even richer by denying care to seniors. DON’T CUT MEDICARE.”

• Rep. Paul Tonko (D-NY) tweeted, “The Trump administration is taking a page out of big insurance’s playbook—using AI to review and decide care for patients under Medicare. The result will mean more delays and denial of coverage that Americans need and deserve.”

• Rep. Pramila Jayapal (D-WA) tweeted, “This is called cutting Medicare coverage. Trump and Republicans are using AI to try and cut your Medicare.”

• Rep. Alexandria Ocasio-Cortez tweeted, “Trump wants to replace doctors with AI to determine whether Medicare patients get the care they need. A machine will have the ability to override a licensed doctor to deny care in order to increase profits. Make no mistake, this is a direct attack on Medicare.”

• Rep. Becca Balint (D-VT) tweeted, “Let me get this straight: in order to see if your medical procedure is covered by insurance, the government will use AI to decide if it is really necessary?? For-profit companies will deny care for seniors and working people to get richer. Despicable.”

• Rep. Greg Landsman (D-OH) tweeted, “AI and tech companies could soon deny treatment to America’s seniors. In 6 states, including Ohio, this administration will pay AI tech companies for denying healthcare, putting patients at risk.”

• Rep. Greg Deluzio (D-PA) tweeted, “Fraudsters are using fake AI impersonations more and more to scam people. I’m proud to join RepEricSorensen’s legislation to crack down on these grifters.”

Miscellaneous

• Sen. Chris Murphy (D-CT) tweeted, “Glad TIME made room for an AI industry critic on their Top 100 Leaders in AI list. “AI companies of perpetuating a ‘fraud’ on the American people, Murphy says. ‘Any talk about ethical or moral AI is just whitewash.’”

• Rep. Rick Crawford (R-AR) tweeted, “I commend the Trump admin for sending this powerful message. We must be taking all necessary steps to protect U.S. technology leadership in microelectronics and artificial intelligence. The CCP does not play by the rules and will stop at nothing in its mission for global dominance. The United States should not be aiding, involuntarily or voluntarily, the advancement of Chinese AI technology and must ensure all safeguards are in place to combat this glaring national security threat. I encourage the administration to evaluate whether similar actions are warranted for other technology companies.”

• Sen. Josh Hawley (R-MO) tweeted, “Senator Hawley’s message to Big Tech: It’s time to make AI work for people—not the other way around. Make it work to enhance our liberty, not destroy. And make it work to protect our livelihoods, and not dismantle.”

• Hawley also tweeted, “Senator Hawley’s message this morning NatConTalk: ‘The problem with the AI revolution as it’s currently going is that it only entrenches the power of the people who are already the most powerful people in the world.’”

• Hawley also tweeted, “Senator Hawley at @NatConTalk NOW: ‘America is a nation founded on the idea of the common man. The American republic is premised on his worth and his liberty. “But the transhumanist ideal rejects the common man’s worth—and AI threatens the common man’s liberty.’”

• Rep. Warren Davidson (R-OH) tweeted, “Privacy is the base layer for ethical AI. Note the state of privacy in the USA…”

• Rep. Maxine Dexter (D-OR) tweeted, “AI data centers are stealing our water. The federal government can’t look away, and as the top Democrat on the House Natural Resources Subcommittee on Oversight and Investigations, I won’t.”

• Sen. Todd Young (R-IN) tweeted, “Great to see FLOTUS launch the Presidential AI Challenge. Preparing students to understand and harness artificial intelligence will help ensure America leads in this critical technology.”

• Rep. Brian Mast (R-FL) tweeted, “Teaching our kids how to use artificial intelligence will serve them & our country in the long-run—this quickly advancing field is the future. POTUS & FLOTUS are working to make sure we’re ready for it!”

• Rep. Byron Donalds (R-FL) tweeted, “ATTENTION K-12 STUDENTS. FLOTUS has officially announced the 2025 Presidential Artificial Intelligence Challenge. Students & educators of all backgrounds & expertise are encouraged to participate & ignite a new spirit of innovation.”

• Rep. August Pfluger (R-TX) tweeted, “FLOTUS launched the Presidential AI Challenge to ensure America’s talent and workforce are prepared to sustain AI’s rapid progress. AI is a transformational technology with immense potential, and I am thrilled that our students will be encouraged to harness it safely!”

• Rep. Nancy Mace (R-SC) tweeted, “As Chairwoman of the GOPOversight Subcommittee on Cybersecurity, we welcome this big step forward on AI education. Thank you FLOTUS and White House for making this a priority!”

• Mace also tweeted, “Hertz’s AI scanners are reportedly charging customers hundreds for minor scratches: no human review, no transparency. We are asking for answers from their CEO. Americans deserve accountability and fairness from technology, not hidden fees.”

• Rep. Mariannette Miller-Meeks (R-IA) tweeted, “This tragic case reported by the NYT highlights the real dangers of unregulated AI. In this instance, a 16-year-old turned to ChatGPT instead of seeking help from family or medical professionals. AI is not a therapist. It is not a doctor. It cannot replace parents, family, or human connection. To protect vulnerable lives, we must be clear about the limits of AI, and equally clear about the policies and groups that erode the essential role of parents and families in a child’s life.”

• House Homeland GOP tweeted, “RepGarbarino’s WIMWIG Act adds clarity to the expiring law to stay up to date with evolving threats, protects the privacy of Americans & their data when information about cyber threats is shared, & helps keep our cyber defenders ahead of threats from emerging tech, like AI.”

• House Homeland GOP also tweeted, “Foreign Terrorist Organizations have been using Generative AI applications to recruit and radicalize lone-wolf actors on the internet. RepPfluger’s bill would require DHS to conduct annual assessments on threats posed to the U.S. by terrorist organizations leveraging GenAI.”

• Rep. Luz Rivas (D-CA) tweeted, “AI has grown to be more prominent in all areas of daily life including education, healthcare, and business. I held a roundtable with local educators and organizations to discuss how they’ve incorporated AI into their work tasks as well as the challenges that have arisen with its use. We need to make sure AI is utilized responsibly and ethically so it can benefit—not harm—communities.”

• Sen. Deb Fischer (R-NE) tweeted, “AI is quickly becoming the engine behind new jobs, stronger businesses, and global competitiveness. And Nebraska has a real chance to be at the forefront.”

• Sen. Sheldon Whitehouse (D-RI) tweeted, “After Trump’s fossil-fuel goons shut down Revolution Wind, I’ve been waiting for the phone to ring with the ransom demand. But maybe this is attempted murder, not extortion, and there will be no demand. That moves us to litigation, where my experience tells me the discovery phase will be fascinating as the lawyers dig into the true motivations and scheming behind this ugly fossil-fuel thuggery. In the meantime, it’s worth spotlighting the corruption. This is a switcheroo to replace the clean energy electrons from Revolution with polluting fossil-fuel-generated electrons, adding revenues to Trump’s political patrons and string-pullers. The fossil fuel plan administered by Trump goons is to destroy energy alternatives until the choice is between tolerating climate upheaval versus having no electricity. In that stark environment, fossil fuel can keep profiting and polluting. Until insurance markets, home mortgage markets, and property values all collapse in climate-endangered areas (from flood and wildfire risk both), taking down the economy and segments of the financial system — as now predicted, by the way. Or until American businesses see their competitiveness erode against international rivals benefitting from cheaper, more abundant, non-polluting energy, and/or are unable to keep up with technology as the world moves to cleaner, cheaper power. Where is the outrage from business? This is the biggest single destruction of business investment I can think of, after huge reliance interests were created, without process or warning, ‘arbitrarily and capriciously’ as lawyers would say. Where’s the Chamber? Is the business community so cowed by Trump’s goons, or so beholden to fossil fuel, that it will turn a blind eye to conduct that would have provoked howls of outrage if the shoe were on the other foot? ‘First, they came for offshore wind…’ Where are the Republican ‘principles’ against government picking winners and losers, or against government destroying private property interests, or for predictable government decision-making? All gone; fossil fuel interests trump principle in this era. Where are the tech bros, AI folks, and crypto crowd, as pinched supply drives data farm costs skyward to meet their demand? Domestic data farms and energy-dependent AI and crypto interests may actually price themselves out of competitiveness.”

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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