The Evolving Federal Landscape on Artificial Intelligence: Recent Actions from Congress and the White House

Introduction

The regulatory landscape for artificial intelligence ("AI") in the United States may be approaching an inflection point. To date, no comprehensive federal law has been adopted governing the development or deployment of AI systems, and state-level regulation has remained relatively limited. Two recent federal developments, however, indicate that more substantial oversight could be forthcoming.

New AI Legislation Introduced in U.S. House

On June 4, 2026, a discussion draft of the “Great American Artificial Intelligence Act of 2026” was circulated in the U.S. House. The 269-page bill would:

• Preempt all state or local laws or regulations on the development of AI models, for a period of 3 years. This preemption would not extend to laws or regulations governing AI use or deployment. (Section 121).
• Require certain “large frontier developers” (those with more than $500 million in revenue) to publicly post information regarding the intended use, restrictions, risk assessments, and mitigation steps relevant to their AI models. Additionally, this bill would require such developers to report “critical” safety incidents to federal authorities within 15 days – or within 24 hours if the incident “poses an imminent risk of death or serious physical injury.” The bill imposes fines of up to $1 million per day for violations of these transparency requirements, and permits injunctions by Federal and State Attorneys General. (Section 111).
• Establish independent verification organizations that would audit large frontier developers’ compliance with the federal law. (Section 112).
• Expand federal tracking and forecasting of AI's labor-market effects, and fund AI literacy programs, technical education, scholarships, workforce research, and workforce-transition initiatives. (Sections 201, 241).
• Establish the "Center for AI Standards and Innovation" ("CAISI") within the Department of Commerce. CAISI would develop voluntary AI security standards and best practices (e.g., adversarial robustness, interpretability, supply-chain risks, model tampering); evaluate AI systems and monitor AI progress; support synthetic content detection tools; and administer the independent verification organization licensing regime. (Section 102).
• Direct the Secretary of Energy and NIST Under Secretary to jointly lead U.S. engagement in international AI standards development and form coalitions with like-minded governments to promote private sector-led standards, advocate U.S. AI standards abroad, counter foreign adversary influence, enable cross-border AI R&D, and share cybersecurity practices. (Section 411).
• Provide funding for security improvements for critical open-source software and commission a report on the safety of AI model weights and the open-source ecosystem. (Sections 311, 321).
• Enhance penalties for AI-enabled fraud and impersonation and establish new whistleblower protections.(Section 113, 131-132).

Although the bill carries bipartisan sponsorship from Reps. Jay Obernolte (R-Cal.) and Lori Trahan (D-Mass.), its preemption of state law has emerged as a significant pressure point. Notably, preemption has been a recurring obstacle to comprehensive federal privacy legislation in the United States.

President Trump’s Latest AI-Focused Executive Order

On June 2, 2026, President Trump signed an executive order focused on AI and national security. The order calls for the government to develop a benchmarking process to assess the "advanced cyber capabilities" of AI models and asks AI developers, on a voluntary basis, to give the government early access to frontier models up to 30 days before commercial and/or public release.

Conclusion

While the substance of federal AI regulation remains uncertain, these recent developments serve as evidence of momentum. Companies developing or deploying AI systems would be well advised to monitor these efforts closely and prepare for a more active federal regulatory environment.

Should you have any questions about the foregoing, please do not hesitate to contact Claire O'Brien, Graham Dean, or any member of our Firm's Artificial Intelligence Team. This article is provided for general informational purposes only and does not constitute legal advice.