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Since returning from its August recess, Congress' flurry of activity has included a focus on artificial intelligence (AI), among other priorities. In particular, last week saw two key developments that illustrate a desire on the Hill to implement and put into action the principles laid out in the White House's AI Action Plan (Action Plan), which was released earlier this summer. First, there was a Senate subcommittee hearing with a key Administration official focusing on the Action Plan; and second, Senator Ted Cruz released a Legislative Framework for American Leadership in Artificial Intelligence (AI Framework) and the Strengthening AI Normalization and Diffusion by Oversight and experimentation (SANDBOX) – both of which are aligned with the Action Plan.
Below, we summarize these developments.
Senate AI Action Plan Hearing
On September 10, 2025, the U.S. Senate Subcommittee on Science, Manufacturing, and Competitiveness convened a hearing titled, AI've Got a Plan: America's AI Action Plan. The hearing featured the Director of the White House Office of Science and Technology Policy (OSTP), Michael Kratsios, and examined the Administration's AI Action Plan, which emphasizes acceleration of the development and deployment of American AI products in order to preserve the United States' competitive advantage over China, achieve global AI dominance, and usher in a new age of human advancement. The hearing also explored potential legislative actions aimed at fostering AI innovation by preventing overregulation, streamlining the development of American AI infrastructure, and strengthening U.S. leadership on the global stage.
Senator Cruz's AI Legislative Framework and SANDBOX Act
On the same day, Senator Cruz released his vision for a legislative approach to implement some of the key principles of the AI Policy – which includes both his AI Framework as well as the new SANDBOX bill.
Senator Cruz's AI Framework outlines five pillars to guide congressional action:
- Unleashing American Innovation and Long-Term Growth
- Protecting Free Speech in the Age of AI
- Preventing a Patchwork of Burdensome AI Regulation
- Stopping Nefarious Uses of AI Against Americans
- Defending Human Value and Dignity
These pillars are designed to build upon the White House's AI Action Plan and its recommended policy actions. Each pillar includes specific proposals – for instance, under the first pillar, Senator Cruz calls for the creation of a federal AI regulatory sandbox and streamlined permitting for AI infrastructure. Some recommendations, however, remain vague, such as the third pillar's call to "Clarify Federal Standards to Prevent Burdensome State AI Regulations."Senator Cruz envisions this Framework as a "starting point for discussion, particularly with respect to the labor force, national defense, and federal standards."
Finally, the SANDBOX Act, also introduced on September 10, 2025, would direct the Director of OSTP to establish a federal regulatory sandbox program for artificial intelligence. This program would allow participants to temporarily bypass certain regulatory requirements – such as licensing and operational authorizations – that might otherwise hinder the testing of AI products, services, or development methods. Waivers or modifications granted under the program would be valid for up to two years and limited in scope to "test, experiment, or temporarily provide to consumers artificial intelligence products or services or artificial intelligence development methods." Program participants would still be subject to oversight by the relevant regulatory agencies whose regulations were waived or modified. Such waiver or modification would be established via a written agreement with the relevant regulatory agencies, and those agencies would be authorized to end a waiver or modification if the participant violates the terms of the written agreement. Additionally, participants would be subject to recordkeeping and periodic reporting requirements.
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These three actions illustrate some of the most recent congressional activity in the AI space. Since the start of this legislative session, Congress has held numerous hearings on how AI impacts different industries, and a range of AI-related legislation has been introduced. Industry stakeholders should pay attention to these developments to understand potential new opportunities and changes in the regulatory frameworks that might impact their development and use of AI.
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