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Lawmakers left Washington without passing meaningful AI legislation and won't return until after the midterms, leaving the industry in a regulatory vacuum
The House adjourned on September 17 without advancing a single major AI bill. Lawmakers won’t reconvene until after the November midterm elections, effectively killing any chance of comprehensive AI regulation reaching the president’s desk this year.
A bipartisan problem with no bipartisan solution #
The Senate isn’t faring much better. Bipartisan negotiations within the Commerce Committee are technically ongoing, but key senators have described the state of talks as “not there yet.”
Democrats generally want stronger guardrails around AI safety and transparency. Republicans, led by House Speaker Mike Johnson, worry that heavy-handed regulation could hamstring American companies in their race against Chinese competitors.
President Trump dismissed existential-risk warnings from AI researchers as a “hoax” during September 2026, aligning himself with industry voices who argue that slowing down development would be a strategic gift to adversaries.
The result is a Congress that has managed to enact exactly one standalone AI-related law: the Take It Down Act, which targets non-consensual deepfakes.
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85 recommendations, limited follow-through #
A bipartisan congressional task force issued 85 recommendations back in 2024, covering everything from algorithmic transparency to liability frameworks for AI-generated content. The follow-through has been minimal.
The Frontier Act, one of the more prominent bills, aimed to improve transparency requirements and create risk-mitigation protocols for the most powerful AI systems. It ran into opposition over preemption issues, specifically whether federal rules should override state-level regulations already taking shape in places like California.
Industry leaders sound alarms, then keep building #
Leaders at Anthropic and OpenAI have repeatedly warned about the risks of deploying increasingly capable AI systems without adequate oversight. Some lawmakers view the calls for regulation as a competitive moat strategy, where incumbents push for rules that would be expensive to comply with, effectively locking out smaller competitors.
Speaker Johnson has been explicit about his priorities. Any regulatory approach, in his view, must avoid undermining US competitiveness.
What the regulatory vacuum means going forward #
The European Union has already implemented its AI Act, creating a comprehensive framework that American companies operating in Europe must follow regardless of what happens in Washington. The longer the US waits, the more its companies will find themselves adapting to foreign rules rather than shaping global standards.
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