Congress Pursues AI Legislation Once Again

Artificial intelligence (AI) is back on Congress’s agenda, and this time there are several competing ideas about what federal AI regulation should look like.

Republican lawmakers are pursuing legislation that could establish federal AI standards while preempting certain state AI laws. Democrats are taking a broader approach, with proposals addressing AI infrastructure, consumer protection, workforce development, and national security.

The proposals are different, and significant questions remain about whether Congress can reach an agreement. Still, the recent activity suggests that federal AI legislation will continue to be an important issue for employers, particularly as AI becomes more common in recruiting, hiring, workforce planning, and other HR functions.

Here is what employers should know about the latest developments and what may come next.

Republican Proposal Focuses on Federal Preemption

President Trump recently met with Senate Commerce Committee Chair Ted Cruz (R-TX) and Senator Marsha Blackburn (R-TN) to discuss legislation that would establish federal AI standards and potentially preempt certain state AI laws. This follows the June 4 release of a discussion draft of the Great American Artificial Intelligence Act of 2026, a bipartisan proposal intended to create a federal framework for artificial intelligence governance.

Blackburn has been working on a legislative package that would combine federal AI standards with measures addressing child safety and privacy. The package could also incorporate existing proposals such as the Kids Online Safety Act, the NO FAKES Act, and the App Store Accountability Act.

Whether lawmakers can reach an agreement on federal preemption remains uncertain. States have increasingly adopted or considered their own AI requirements, and determining which state laws should remain in effect under a federal framework is likely to be a significant part of the debate.

For employers, the outcome could be important. Organizations operating in multiple states may have to navigate different requirements governing AI. A federal law that preempts some or all state AI requirements could create greater consistency, depending on how broadly the legislation is written.

Until Congress acts, however, applicable state and local requirements remain part of the compliance landscape.

Democrats Focus on AI’s Impact on the Workforce

While Republicans focus heavily on preemption, Sen. Mark Warner (D-VA), vice chair of the Senate Intelligence Committee, has introduced a broader Framework for America’s AI Future.

The framework focuses on four areas:

1. AI infrastructure accountability;
2. Competition and consumer safety;
3. Workforce preparation; and
4. National security.

For employers, the workforce proposals are particularly noteworthy.

One proposal would establish a National Workforce Transition Fund to provide resources for workers affected by technological change. The proposal includes worker retraining accounts, tuition assistance, and grants designed to help employers redeploy workers into new positions.

The proposal raises an important issue that may become a larger part of the AI conversation. As AI changes how work is performed, lawmakers may increasingly focus not only on how organizations use AI, but also on what happens to employees whose jobs or responsibilities change because of it.

Looking Ahead: What May Come Next for Employers?

It is too early to know whether any of the current proposals will become law. However, the competing approaches offer some clues about where AI regulation may be headed.

• The federal versus state debate is unlikely to disappear. Federal preemption may continue to be one of the most significant issues surrounding AI legislation. If Congress does not act, states are likely to continue developing their own approaches, leaving multistate employers to monitor an evolving collection of requirements.

• Workplace AI may become a more established HR compliance issue. As AI becomes more common in recruiting, hiring, performance management, workforce analytics, and other employment functions, employers may see greater attention from lawmakers and regulators regarding how these systems are selected and used.

• Employers may be expected to know more about their AI vendors. It may no longer be enough to know what an AI product does. Employers could face increasing pressure to understand how a system was tested, what employee or applicant information it uses, how potential errors or bias are addressed, and what oversight the vendor provides.

• The conversation may shift from AI adoption to AI workforce impact. Much of the early workplace discussion surrounding AI has focused on how employers may use the technology. Warner’s workforce proposals suggest that policymakers are also thinking about what happens after AI is implemented. Retraining, redeployment, changing skill requirements, and job displacement could receive greater attention in future proposals.

• Transparency may become a recurring theme. Future legislation may place greater emphasis on identifying when AI is being used, explaining its role in certain decisions, documenting how systems are evaluated, or providing additional oversight when AI affects individuals.

None of these outcomes are certain. Congress could adopt comprehensive AI legislation, pass narrower measures, or fail to reach an agreement. The eventual outcome may also depend on how lawmakers resolve the difficult question of whether federal requirements should replace existing state laws.

What Employers Should Watch

For employers, there may be more value right now in watching the direction of the debate than trying to predict which bill will ultimately cross the finish line.

Three issues are particularly worth monitoring: (1) whether Congress moves forward with federal preemption, (2) whether federal agencies take a larger role in AI enforcement, and (3) whether workforce protections become a more prominent part of future AI legislation.

Employers should also remember that proposals in Washington do not change existing compliance obligations. Federal, state, and local requirements that currently apply to workplace AI remain in effect unless they are amended, repealed, or preempted.

The details of a federal AI framework remain uncertain, but the broader direction is becoming clearer. AI is moving beyond a technology issue and becoming a workplace policy and compliance issue as well.

For HR professionals, the question is no longer simply, “Are we using AI?” Employers are already confronting more complicated questions about how AI is being used, who is overseeing it, and what rules apply. As federal and state policymakers continue to focus on AI, those questions are likely to become even more important.

How HR Works Can Help

HR Works can assist employers with evaluating AI use in the workplace, developing AI policies and governance practices, reviewing employment-related AI risks, supporting workforce planning efforts, and monitoring federal, state, and local compliance developments. Employers considering AI tools or workforce changes connected to AI should ensure their approach is documented, consistent, and aligned with applicable employment laws.

Contact us to learn more about how HR Works can support your AI compliance efforts.