Lawmakers propose AI framework that would preempt state laws for 3 years

Reps. Jay Obernolte, R-Calif., and Lori Trahan, D-Mass., rolled out a draft measure Thursday that would set a nearly all-encompassing framework for granting the U.S. government regulatory control over various aspects of artificial intelligence while still prioritizing technological innovation and adoption — beginning with allowing federal preemption of state regulation for a three-year period. 

The discussion draft of the Great American Artificial Intelligence Act of 2026 looks to create four pillars for AI advancement: establishing frontier artificial intelligence model governance, collecting insight into changes within the U.S. workforce landscape, fortifying cybersecurity postures and spurring new AI research and development.

In governing frontier AI models, the proposal seeks to codify the existence of the Center for AI Standards and Innovation, an office that was initially established under the Biden administration as the AI Safety Institute and was rebranded by the Department of Commerce in 2025.

The measure looks to task that office with spearheading development of standards and voluntary guidance for AI models, as well as studying and mitigating national security risks, building on Trump administration efforts to partner with industry in allowing government evaluations of AI models. A director of CAISI would be appointed by the Commerce secretary. 

Under the draft legislation, CAISI would also oversee other efforts, such as monitoring foreign competitors and setting up a new licensing regime to designate independent verification organizations, which are defined as entities that conduct audits of frontier model developers' compliance with transparency. 

The measure would grant CAISI $100 million in annual federal funding for 2027 to 2029.

Frontier model developers would also be tasked with maintaining transparency in how they monitor their AI systems.

The proposal stipulates that large AI model developers craft and implement an AI framework that will apply to all their models, showcase standards compliance efforts, identify risk thresholds, determine whether a model poses “a catastrophic risk” when managing cybersecurity defenses –– particularly in private model weights –– and also disclose release dates. This information would have to be publicly available, as would any modifications to companies’ governance frameworks. 

Large frontier model developers would also be required to retain a qualified independent verification organization to confirm compliance with their individual frameworks. As independent entities, those verification organizations will be scrutinized to ensure that there are no ties to the companies they monitor. State attorneys general are also permitted to receive audit reports from those organizations upon request.

Understanding how AI is impacting the workforce is a paramount component of the draft bill. At an educational level, it prioritizes incorporating fundamental AI literacy into various curricula, including at the K-12 level and in institutions of higher education.

The National Science Foundation would lead the charge in supporting more AI-focused education efforts, using vehicles like awards and grants to expand access for students and educators to learn more about AI. Notably, the bill asks NSF to create eight Centers of AI Excellence with help from Commerce’s Regional Technology and Innovation Hub Program. 

Aside from education, the proposal's authors also seek to understand how AI is impacting the jobs market. It directs the Department of Labor to supply clear statistics on changes in the labor market and AI workforce landscape via a new Artificial Intelligence Workforce Research Hub. 

The Labor secretary would also be tasked with publishing a request for comment on how to best implement the data collection and forecasting analytics pursuant to the bill’s requirements. An initial expert workshop comprised of economists, AI technical experts, industry participants, labor organizations and government officials would be established to evaluate the Bureau of Labor Statistics' understanding of AI’s workforce impact.

As the ramifications of AI-driven cyberthreats have accelerated following the release of Anthropic’s advanced model Mythos and other high-performance AI tools, the bill expands existing federal cybersecurity efforts to understand the risk landscape. Prioritizing threat intelligence sharing, it would reauthorize and extend the Cybersecurity Information Sharing Act of 2015 until 2035 and direct the Homeland Security secretary to develop an outreach plan targeting small or rural owners and operators of critical infrastructure to inform them of both threats and recourse options. 

The Cybersecurity and Infrastructure Security Agency and CAISI would work together to assist maintainers of open-source software in their defensive efforts. Under the draft bill, maintainers — or the lead developers in charge of open-source software code — would be eligible for funding to help detect and patch outstanding vulnerabilities through controlled access to select frontier models. 

The final section of the proposal is focused on research and development efforts to ensure the U.S. continues leading in AI innovation. The draft bill seeks to promote interagency coordination to support the creation of a new testbed program with participation between the national laboratories, federal laboratories, NIST, the National AI Research Resource pilot program –– or a successor program –– and private sector entities. 

Leaders in charge of testbed coordination include the Energy secretary, the undersecretary of Commerce for Standards and Technology and the NSF director. The testbeds would conduct security risk and vulnerability assessments. Work within the testbeds would prioritize assessments by identifying security vulnerabilities of AI systems with respect to threats like autonomous offensive cyber capabilities, vulnerabilities in the AI software ecosystem, chemical and biological threats, critical infrastructure threats and more.

The bill would also formally establish the National AI Research Resource, a pilot program based within NSF. The bill calls for the amendment of the 2021 National Defense Authorization Act to include NAIRR resources and protocols, creating a new steering subcommittee focusing on innovation in AI, small business concerns and more. 

Notably, the bill stipulates that NAIRR can accept and use donations of cash, services and personal property from private sector entities. NAIRR would also be tasked with procuring and providing resources, including datasets and computational support, for a diverse body of researchers in the public and private sector, along with academia. 

The National AI Act of 2020 would also receive updates, including directing the Office of Science and Technology Policy to develop a prioritized list of federal datasets for public release to support model training. 

While the draft has received bipartisan backing — the House Democratic Commission on AI and the Innovation Economy, chaired by Reps. Valerie Foushee, D-N.C., Ted Lieu, D-Calif., and Josh Gottheimer, D-N.J. — did not support the current discussion draft. 

“While we appreciate the bipartisan effort from Representatives Jay Obernolte and Lori Trahan, their proposed discussion draft on AI does not meet the enormity of the moment,” the commission said in a statement. “The 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. Many of those same organizations share our view that this document cannot serve as the basis for productive dialogue.”

Obernolte and Trahan’s draft has also prompted diverse industry feedback.

“We are encouraged that the Great American AI Act includes key elements that will accelerate American AI leadership including codification of the National Artificial Intelligence Research Resource, promote U.S. leadership in international standards development, extend the Cybersecurity Information Sharing Act of 2015, and expand research for next-generation data center efficiencies,” said Jason Oxman, the CEO of the Information Technology Industry Council. “These are important priorities that will ensure the United States continues to drive the global tech ecosystem and win the AI race.”

The nonprofit Americans for Responsible Innovation, however, took issue with the three-year preemption of state laws and questioned the civil rights ramifications. 

“This bill takes the current floor on state AI legislation and turns it into a federal ceiling, preventing state lawmakers from addressing emerging AI harms in an era of fast-moving technology,” said ARI President Brad Carson. “Over the past two decades, state lawmakers have proven to be a backstop for tech accountability, fighting for families and communities even as Congress has stalled on creating guardrails. Tying their hands would be a generational mistake. When we give Big Tech a pass to move fast and break things, as this bill does today, they break American communities.”