{"id":240,"date":"2026-06-10T11:42:00","date_gmt":"2026-06-10T11:42:00","guid":{"rendered":"https:\/\/americanindustryreview.com\/?p=240"},"modified":"2026-06-10T11:42:00","modified_gmt":"2026-06-10T11:42:00","slug":"rush-to-regulate-ai-divides-democrats-in-congress","status":"publish","type":"post","link":"https:\/\/americanindustryreview.com\/?p=240","title":{"rendered":"Rush to regulate AI divides Democrats in Congress"},"content":{"rendered":"
\n

Recent proposals to regulate artificial intelligence show Democratic paths diverging between cooperation and compromise on the one hand and sweeping regulations on the other.<\/p>\n

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Growing public angst about the new technology and its impact on jobs, communities and the environment has fueled both ends of the spectrum and, even in the case of the most progressive ideas, attracted possible support from Republicans.<\/p>\n

In co-sponsoring a draft bipartisan AI framework, Rep. Lori Trahan, D-Mass., pitched her position as one of balance.<\/p>\n

\u201cThe threats AI poses to our national security, our safety, and our workforce are here and growing by the day,\u201d Trahan said in a statement on the discussion draft\u00a0release last week with sponsor Jay Obernolte, R-Calif.\u00a0\u201cThis bipartisan framework is designed to meet the challenges posed by this rapidly advancing technology without smothering American innovation.\u201d<\/p>\n

[Related:\u00a0Bipartisan AI draft proposes three-year preemption of state laws]<\/em><\/strong><\/p>\n

Trahan had drawn significant criticism for the bill\u2019s proposed three-year preemption of state AI development laws even before the draft was released. Once it was out, the opposition grew louder \u2014 from within her own party.<\/p>\n

The Democratic House Commission on AI and the Innovation Economy put out a statement the day of the release saying the group, led by Reps. Ted Lieu, D-Calif., Valerie P. Foushee, D-N.C., and Josh Gottheimer, D-N.J., couldn\u2019t support the bill because it \u201cdoes not meet the enormity of the moment.\u201d<\/p>\n

\u201cThe House Commission on AI and the Innovation Economy has spent months working closely with our colleagues and key stakeholders from civil society organizations, industry, labor, academia, and others addressing AI issues,\u201d the group said in a statement. \u201cMany of those same organizations share our view that this document cannot serve as the basis for productive dialogue.\u201d<\/p>\n

The AFL-CIO, the ACLU and the AI safety-focused group Americans for Responsible Innovation all came out in opposition to the bill\u2019s preemption of state laws.<\/p>\n

Lieu, who is also Democratic Caucus vice chair, said Tuesday that the commission\u2019s statement \u201conly speaks for itself,\u201d and not for party leadership or the larger Democratic caucus.\u00a0He said he agrees with Trahan on the \u201curgency\u201d of regulating AI, but not without real agreement.<\/p>\n

\u201cIn Congress, you have to build a consensus. You actually have to get groups and members of Congress and organizations to support what you\u2019re trying to do,\u201d he said.<\/p>\n

Lieu also said the commission is continuing to meet with stakeholders to develop their own AI plan.\u00a0\u201cBy the end of the year, we\u2019ll have a framework to propose to Leader Jeffries for when Democrats are in control next year,\u201d he said, referring to House Minority Leader Hakeem Jeffries, D-N.Y.<\/p>\n

Trahan and Obernolte\u2019s proposal also didn\u2019t garner full support from the Republican side of the aisle.<\/p>\n

House Majority Leader Steve Scalise, R-La., said he plans to look to the House Energy and Commerce Committee and Chairman Brett Guthrie, R-Ky., for AI legislation, rather than Obernolte. He is supportive of preemption, though he didn\u2019t specify a length of time or types of state AI laws that should be preempted.<\/p>\n

\u201cAs a new growing form of technology, I\u2019m against any form of preventing innovation in America, and so preemption at the federal level on bad local policies is something really important that we\u2019re looking at,\u201d Scalise told reporters on Tuesday.<\/p>\n

Progressive stance<\/h2>\n

While Trahan has looked for compromise and found pushback from the right and left, Sen. Bernie Sanders, I-Vt., looks to swing for the fences and has found some commonality across the aisle.<\/p>\n

Last week, Sanders announced plans to draft legislation that would create an AI sovereign wealth fund, which would have the federal government take a 50 percent stake in major AI firms.<\/p>\n

Speaking at an event Monday at the National Press Club, Sanders said he hopes the legislation will be ready \u201cin a week or two.\u201d<\/p>\n

Sanders argued that the public should have ownership in AI because it was developed using the knowledge of the public, through published works of art and writing and through social media posts and comments.<\/p>\n

\u201cGiven the fact that it is the people \u2026 whose work is the foundation, whose labor is the foundation of AI, they should have some say in the future of AI.\u201d Sanders said.<\/p>\n

Sanders said that public representation within the AI industry could look like the president nominating individuals to serve on company boards, to be approved by the Senate.<\/p>\n

In an op-ed published by The New York Times announcing the bill, Sanders said the fund would \u201cgive the public a direct role in determining the future of this technology.\u201d<\/p>\n

\u201cThe federal government would have the power, through its voting shares and an equal representation on each company\u2019s board, to block decisions that hurt our citizens and to push for policies that help them,\u201d Sanders wrote.<\/p>\n

Read more GOP immigration funding bill clears House, heads to Trump<\/a><\/p>\n

Sanders said Monday that as AI companies grow, the fund could be used to provide dividends to the American people and to fund social priorities like Medicare and education. He compared the fund to similar policies in Norway and Alaska. Alaska residents receive around $1,000 annually out of oil and mining revenue generated in the state.<\/p>\n

The idea has a perhaps unlikely supporter\u00a0in the White House.<\/p>\n

On Friday, President Donald Trump told reporters he\u2019s meeting with AI companies \u201cin the very near future\u201d to discuss the possibility of federal government stakes in the firms.<\/p>\n

\u201cThere\u2019s so much money and it\u2019s so big that there are concepts where pieces could be given to the American public, where the American public essentially becomes a partner,\u201d Trump said.<\/p>\n

Sanders said Trump is responding to public discomfort with the role of certain wealthy tech funders \u201cinvesting huge amounts of money simply to make themselves even richer.\u201d<\/p>\n

An April Politico poll found that 43 percent of respondents think AI\u2019s risks outweigh its benefits, while only 33 percent think the benefits outweigh risks.<\/p>\n

\u201cI think as a politician, that\u2019s where he\u2019s coming from,\u201d Sanders said. \u201cDo I have great confidence that Trump will do the right thing? No, I don\u2019t.\u201d<\/p>\n

Industry views<\/h2>\n

The public dividends portion of the idea also has at least some support from one of AI\u2019s biggest players, OpenAI, whose CEO Sam Altman met with Sanders last week.<\/p>\n

In April, the company released a plan for \u201cIndustrial Policy for the Intelligence Age,\u201d which it said would address societal risks from AI, including disruption of the workforce.<\/p>\n

The company suggested the creation of a \u201cpublic wealth fund\u201d that \u201cprovides every citizen \u2014 including those not invested in financial markets \u2014 with a stake in AI-driven economic growth. \u201c<\/p>\n

But importantly, there appears to be a distinction for some between finding ways for Americans to benefit economically from AI and the federal government taking a stake.<\/p>\n

In a statement in response to Trump\u2019s comments, Patrick Hedger, director of policy for technology industry group NetChoice, compared a government stake in private firms to state control in China.<\/p>\n

\u201cThe free market is infinitely more agile and efficient than the federal government,\u201d Hedger said. \u201cNationalizing America\u2019s leading AI labs, even if only partially, would inject Washington bureaucracy into a hyper-competitive, fast-moving industry, stalling progress when we can least afford it.\u201d<\/p>\n

Sen. Josh Hawley, R-Mo.,\u00a0took a similar line speaking to reporters on Tuesday.<\/p>\n

\u201cHaving big government own Big Tech seems to be putting together some of the worst people on earth,\u201d Hawley said.\u00a0<\/p>\n

However, he left open the door to using taxes on AI companies to create Sanders\u2019 proposed sovereign wealth fund.<\/p>\n

\u201cMaking sure that these AI companies, in particular, that what they\u2019re doing is actually benefiting ordinary working Americans, that\u2019s a huge deal, and that is absolutely viable,\u201d Hawley said.<\/p>\n

The fund is not Sanders\u2019 only big attempt to address Americans\u2019 unease over the growth of AI.\u00a0<\/p>\n

In March, backed by fellow progressive Rep. Alexandria Ocasio-Cortez, D-N.Y., he introduced legislation that would pause the construction of AI data centers and upgrades until federal laws were enacted to regulate AI and its associated energy costs and environmental effects.<\/p>\n

The proposed ban is in line with sentiment spreading not just in Democratic areas but Republican ones as well.<\/p>\n

Localities in Missouri, North Carolina, Virginia and Rhode Island have either full data center bans or bans based on size and other specifications.<\/p>\n

A March Gallup poll found that 71 percent of respondents either strongly or somewhat oppose the construction of an AI data center in their area. That opposition crosses parties, with 75 percent of Democrats opposed and 63 percent of Republicans.<\/p>\n

Read more Nancy Mace and Ralph Norman lose bids for governor in South Carolina<\/a><\/p>\n

Valerie Yurk contributed to this report.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Recent proposals to regulate artificial intelligence show Democratic paths diverging between cooperation and compromise on the one hand and sweeping regulations on the other. 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