Tag: Federal AI Framework

  • Preemption Without an Owner: Why the Federal-State AI Fight Needs Someone Accountable

    By the Founders, Department of Technology | San Diego, California | November 13, 2026

    Washington is arguing over whether federal law should override state AI rules. Both sides have real arguments. But whoever wins, someone has to enforce the result and answer to voters for it, and right now no one does.

    Few questions in technology policy have produced more heat than federal preemption: whether Congress should replace the growing body of state AI laws with a single national standard. This piece does not argue that preemption is right or wrong. We lay out the strongest case on each side, review what the record shows, and make one claim that holds under either outcome: a national standard, or a patchwork, without a named, accountable owner is not a policy. It is a vacuum.

    The case for a national standard

    Supporters of preemption make an argument that deserves a fair hearing. AI development does not stop at state borders, they say, and companies facing dozens of different rules face rising compliance costs that favor the largest firms. In December 2025, a presidential executive order called for a uniform national framework, directed the Justice Department to challenge state laws it deemed onerous, and tied some federal broadband funding to state policy. Industry groups and senators including Ted Cruz have argued for explicit federal preemption of conflicting state laws, and some supporters now say the longer Congress waits, the harder preemption becomes as more state laws pile up.

    In March 2026, the White House sent Congress a national framework that called for preempting burdensome state AI laws, with exceptions for child safety, general consumer-protection and fraud laws, state procurement and state zoning for AI infrastructure.

    The case against

    Opponents make an equally serious argument. States, they say, are closer to the people affected and can respond faster than Congress, and preemption without enforceable federal protections would leave residents with fewer remedies than they have today. The opposition has been broad. In July 2025, the Senate voted 99 to 1 against a proposed state AI moratorium. When it returned in the defense bill, more than 300 state lawmakers from across the political spectrum urged Congress to reject it, and prominent Republicans including Senator Josh Hawley, Representative Marjorie Taylor Greene and Arkansas Governor Sarah Huckabee Sanders spoke against it. The defense bill text did not include the moratorium, and House Republican leaders were left searching for another vehicle.

    What the record shows

    Whatever one thinks of preemption, the practical result so far is a stalemate. Two attempts to attach it to must-pass bills failed. The White House framework has not become law. By one account, Congress left for its August recess without moving a federal AI framework out of committee. Meanwhile, 29 states enacted AI legislation in 2026, and for the first time both Republican- and Democratic-led states passed laws adding requirements or oversight for data centers.

    The states did not wait for permission, and no one in Washington was positioned to tell them to stop or to give them something better to follow.

    The part both sides already agree on

    Here is the detail that gets lost in the argument. Even the strongest preemption proposals carve out data center infrastructure. The December executive order said legislation should not preempt state laws on data center infrastructure, and the March framework would leave state zoning for AI infrastructure in place. In other words, the people who favor the broadest national standard agree that decisions about where data centers go, how they are powered and who pays remain local and state decisions.

    That has a consequence. Whatever Congress decides about model rules, child safety or algorithmic discrimination, the data center decisions that voters care about most, and that voted on November 3, will be made by city councils, county boards, state utility commissions and legislatures. Those officials are making multibillion-dollar decisions with no technology counterpart whose job it is to see the whole picture.

    Where the owner is missing under each outcome

    • If broad preemption passes, a federal standard replaces state rules. Who enforces it, who updates it as the technology changes, and who do residents call when it fails? Without an accountable federal office, critics of preemption are right that residents lose remedies.
    • If preemption fails, the patchwork grows. Companies face rules that differ by state, and states and counties negotiate against the same few buyers with little shared information. Without a coordinating office, supporters of a national standard are right that the burden falls hardest on smaller firms and communities.
    • If a narrow hybrid passes, federal and state authority meet at a boundary that will be contested. Someone has to be accountable for where that boundary sits and for what falls through it.

    In every case, the missing piece is the same: an office that answers to voters for how the system works as a whole.

    Three tests for any national AI standard

    We take no position on how broad preemption should be. We do suggest three tests for any proposal, from any party:

    1. Is the federal protection enforceable? If a national standard replaces state rules, it should carry real enforcement and clear remedies, not just guidance.
    2. Is there a named, accountable official? Someone should be answerable to voters, and to Congress, for how the standard is administered and updated.
    3. Does it keep data center decisions local and public? Siting, rates and disclosure of public deals should stay with local and state governments, with transparency rules attached.

    And a procedural test: was it debated on its own, with hearings and a public text, instead of inside a must-pass bill?

    The case against our case

    • Accountability can be built into existing agencies. Some will say a regulator or a White House coordinator could play this role without a new elected office. That is a reasonable design, though we think voters should be able to hold someone to account directly.
    • Local decisions are the problem. Some supporters of preemption believe local control over data centers is what slows the buildout, and would prefer more federal permitting authority. The administration has proposed streamlining federal permitting for AI data centers, and reasonable people can weigh that against local consent.
    • It adds a layer. Another layer of officials could slow decisions. We would answer that the status quo already has many layers and no owner, but we welcome the debate.

    The question underneath

    The preemption fight will continue, and we hope it is resolved by open debate and not by rider. But the question underneath it will not go away: when the technology goes wrong, or when it goes right and the gains are not shared, who is responsible? We think the answer should be someone voters can elect, at every level of government. Find our proposal at department.technology/.

  • A Briefing for the New Congress: What the Last Two Years Got Wrong, and What to Do Differently

    By the Founders, Department of Technology | San Diego, California | November 13, 2026

    To the newly elected: you are about to inherit the most consequential technology decisions in a generation, and the last Congress left you a map of what not to do.

    This is not a partisan scorecard. The record we describe below includes members of both parties acting in good faith and members of both parties falling short. Newly elected members of Congress are sworn in this January, and we think you are better served by an honest account of what happened than by a flattering one. We start with what worked.

    What the last Congress got right

    It is easy to say Congress did nothing on data centers. That is not quite true. In July, the House Energy and Commerce Committee passed the Ratepayer Protection Act 52 to 0, a bill from Republican Gabe Evans and Democrat Kathy Castor. In September, the full House passed it 417 to 3 under a procedure that required a two-thirds majority. The bill would require state utility regulators to consider standards that make large data center customers pay the full cost of the grid upgrades built to serve them. In a polarized era, that is a real accomplishment, and it shows what is possible when members start from a problem their constituents can feel: the electric bill.

    Then came the mistakes.

    Mistake 1: Trying to pass the big thing through the back door

    For two years, advocates of a national AI framework tried to move federal preemption of state AI laws by attaching it to must-pass bills. Those efforts, including the defense authorization bill and the 2025 budget reconciliation law, were unsuccessful. Senators rejected a broad preemption proposal 99 to 1. In March 2026, the White House sent Congress a national policy framework that again called for preempting burdensome state laws while carving out areas such as child safety and state zoning for AI infrastructure. By one account, Congress left for its August recess without moving a federal AI framework out of committee.

    The lesson is not that preemption is right or wrong. Reasonable people disagree, and we lay out both sides below. The lesson is that a question this large cannot be settled by rider. It needs its own hearings, its own text and its own public debate.

    Mistake 2: Letting the one agreement become a campaign prop

    The Ratepayer Protection Act did not stall because no one wanted it. It stalled because of how it arrived. On September 30, five weeks before Election Day, the Senate voted 57 to 43 on a procedural motion that needed 60 votes. Only four Democrats voted yes.

    The two sides told different stories, and each has a serious argument:

    • Republican supporters said the bill had passed the House almost unanimously, with Democratic votes and Democratic cosponsors, and accused Senate Democrats of refusing to take yes for an answer for political reasons.
    • Senate Democrats said the bill’s core protection is optional, since states need only consider standards, and offered their own GRID Savings Act to make large customers actually pay for grid upgrades. Senator Schumer called the Republican bill “optional” and toothless.

    We take no side on optional versus mandatory. We do note that Reuters reported Senate Republicans aimed to improve their midterm prospects with the vote, and that the bill arrived at the end of the session, after the Senate had not moved on data centers for months. A measure introduced in July and brought to a test vote in the last weeks before an election will be judged as a campaign move whatever its merits. The practical lesson for new members: if you want a data center bill to become law, negotiate the mandatory-versus-optional question in the spring, not the fall.

    Mistake 3: Solving one slice of a three-part problem

    Even if the Ratepayer Protection Act had passed, it would have addressed one of three risks we described in our earlier piece, “The Data Center Casino.” It deals with who pays for grid upgrades. It does not address how fast we can build power to compete with China, the financial exposure if the AI investment boom turns, or what happens to federal and state revenue if AI displaces high-paid white-collar work. Congress legislated the slice that polls well. No committee is responsible for the whole.

    Mistake 4: Leaving a vacuum for states and for secret local deals

    When Congress does not act, others do. In 2026, 29 states enacted AI legislation, and for the first time both Republican- and Democratic-led states passed laws adding requirements or oversight for data centers. That is encouraging, and it is also a patchwork. Meanwhile, at the local level, many deals are still negotiated under non-disclosure agreements. As we noted in our open letter, 25 of 31 Virginia local governments involved in data center development had signed NDAs. Residents learn about the largest infrastructure project in their county after the decision is made.

    Mistake 5: Nobody owns it

    This is the mistake underneath the others. AI, data centers, the power grid, student data, surveillance and the workforce are governed by a patchwork of committees and agencies. Each handles a slice, and no one is accountable to voters for how the slices fit together. We raised this directly. In February 2025 we submitted a proposal to the White House Office of Science and Technology Policy for a national AI action plan, and in July 2025 we published a response to the plan that followed. We have not had a substantive engagement with either. We mention it not as a complaint, since a good idea should not depend on one administration, but because it illustrates the structural problem: there was no office whose job it was to say yes or no.

    What new members can do in the first 100 days

    1. Hold hearings on the whole picture. Grid capacity, public cost, competitiveness and fiscal impact together, with the same witnesses in the same room.
    2. Settle optional versus mandatory early. Bring Republicans and Democrats who both voted for ratepayer protection into one room and write the version that can reach 60 votes.
    3. Keep big structural questions out of must-pass bills. Preemption, if it happens, should be debated on its own.
    4. Open the deals. Require public disclosure of data center agreements that involve public land, public utilities or public incentives.
    5. Create a single point of accountability. At minimum, a standing joint committee with jurisdiction over the whole question. Ideally, an elected technology leader at every level of government, including a Secretary of Technology at the federal level, whose job is to answer to voters for the combination.

    The case against our case

    A fair briefing includes the strongest objections.

    • Preemption advocates argue a patchwork of state laws slows innovation and that national competitiveness requires one national standard, and they note that the longer Congress waits, the harder preemption becomes as states pass more laws (Broadband Breakfast). Opponents respond that preemption without enforceable federal protections would leave residents with fewer remedies.
    • Optional standards may be the right design. Supporters of the Ratepayer Protection Act argue that utility regulation has long been a state responsibility and that a federal mandate would overreach. Critics respond that voluntary pledges have not been enough.
    • Congress already has committees for this. Some will say the problem is political will, not structure, and that a new office adds a layer. Our view is that structure shapes will: when every committee owns a slice, no one is blamed for the whole. But we welcome the argument.

    The first step

    The new Congress does not need to solve everything in January. It needs to stop treating the central question, who is accountable for the technology buildout, as someone else’s job. Start the conversation about a Department of Technology and elected technology leaders at every level. We will help, and we will be honest with you when we think you are wrong. Find our proposal at department.technology/.