House bill would codify federal AI governance framework, establish standards center
A bipartisan House discussion draft released Thursday would create a federal structure for AI oversight, formally authorize a Commerce Department standards center, and require accountability in how federal agencies adopt AI systems.
Reps. Lori Trahan, D-Mass., and Jay Obernolte, R-Calif., introduced the "Great American AI Act," a nearly 270-page draft that would allocate $100 million annually through fiscal 2029 to the Center for AI Standards and Innovation. The center currently exists through executive action but lacks congressional authorization.
The bill comes two days after the White House issued an executive order requesting early access to AI models for federal oversight.
What the bill would do
The draft would formally codify the Commerce Department's Center for AI Standards and Innovation, which Commerce Secretary Howard Lutnick rebranded from the Biden-era U.S. AI Safety Institute last June. The center would develop voluntary guidelines, security standards, and best practices while evaluating AI systems and monitoring progress.
The Government Accountability Office would evaluate how federal agencies are adopting AI, identify federal laws and regulations that affect AI innovation or burden AI infrastructure, and recommend legislative changes.
The bill would also require:
- Large frontier AI developers to report critical safety incidents to the government
- The Census Bureau and Bureau of Labor Statistics to add questions about AI use and adoption to federal surveys
- Criminal penalties for using AI to impersonate government officials
- The Energy Department, National Institute of Standards and Technology, and National Science Foundation to establish a testbed program for evaluating AI systems across public and private labs
- CISA to award grants for open-source software security improvements
State regulation and preemption
The draft includes language preempting states from issuing their own laws regulating frontier AI model development. States could still pass laws of "general applicability" related to AI and regulate deployed models.
"America should lead the world in artificial intelligence, not regulate ourselves into falling behind China through a patchwork of fifty different state laws," said Rep. Erin Houchin, R-Ind., a co-sponsor.
International standards and open-source security
The Energy Department and NIST would jointly lead the nation's international AI standards development, forming coalitions with allied governments to promote U.S.-developed standards and counter foreign adversary influence. The bill explicitly excludes China from this collaboration.
CISA would award grants to maintainers of widely used open-source software for security improvements, patching, and audits. The GAO would evaluate how AI model weights and open-source software ecosystems are protected.
Workforce and research funding
NIST and the National Science Foundation would establish grants and prizes to broaden participation in AI research, education, and workforce development. The bill would formally codify the National Artificial Intelligence Research Resource, currently housed in NSF, to procure and provide data, training, and resources for AI development across public and private sectors.
Next steps
This is a discussion draft, meaning it has not been formally introduced for congressional action. The sponsors did not indicate when or if the bill would be introduced but are seeking feedback from stakeholders, experts, and the public before moving forward. Interested parties can send comments to GAAIA@mail.house.gov.
"This bipartisan framework is designed to meet the challenges posed by this rapidly advancing technology without smothering American innovation," Trahan said.
For government workers, understanding this framework matters. Whether your agency adopts AI systems, manages data, or works in policy, the bill's requirements for federal AI adoption evaluation and standards development will likely shape how your organization approaches these tools. AI for Government and AI Learning Path for Policy Makers resources can help you understand the policy landscape.
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