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25 September 2026

Midterms & Tech Policy: Policy Items On The Horizon In 2027

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Wiley Rein

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As Congress prepares for the 2027 legislative agenda, several critical technology and telecommunications policy initiatives are poised to shape federal policymaking. From broadband infrastructure funding and Universal Service Fund reform to artificial intelligence governance and children's online safety, lawmakers face complex decisions that will impact innovation, competition, and consumer protection in the digital age.
United States Technology

As the House winds down its legislative work ahead of the 2026 midterm elections and the Senate prepares to conclude its session at the end of the month, attention is increasingly turning to the policy issues that will shape the 2027 agenda. Below, we highlight several technology, telecommunications, and digital policy initiatives that are likely to carry into 2027. These developments will be important to watch as lawmakers, regulators, and industry stakeholders prepare for the neaxt phase of federal tech policymaking.

BEAD

National Telecommunications and Information Administration (NTIA) Administrator Arielle Roth announced the Administration will launch a second round of Broadband Equity, Access, and Deployment (BEAD) funding for locations expected to remain unserved after the initial BEAD round has been completed. According to NTIA’s press release, the new funding round will also capture locations that are now eligible due to “defaults or changes in previous federal and state broadband programs.” If control of Congress changes, Democrats are expected to increase oversight of the BEAD program, as well as revise and potentially attempt to revive other broadband initiatives, including broadband subsidies to households and digital equity grant programs.

USF Reform

Senators Deb Fischer (R-NE) and Ben Ray Luján (D-NM) and Representatives Richard Hudson (R-NC) and Doris Matsui (D-CA)’s Universal Service Fund Working Group has been developing policy proposals regarding the future of the Universal Service Fund, including reviewing submissions from stakeholders and the public. Working Group leaders sent a letter to the Federal Communications Commission in December 2025 asking the agency to provide information about the Fund’s stability, contribution methodology, and long-term policy direction to inform Working Group discussions. A draft proposal was expected this summer, and stakeholders continue to await further developments.

Data Centers

The rapid growth of data centers has emerged as a prominent policy issue, taking center stage in local, state, and federal debates over the past year. Communities across the country have raised concerns about the facilities' impact on local infrastructure, energy consumption, water resources, and land use. This issue is likely to remain at the forefront in 2027. While the Trump Administration has strongly supported data center development, and leave greater authority to state and local governments, some Republicans have begun to express concerns about the strain that large-scale data center projects can place on local resources. As a result, lawmakers are exploring legislative proposals to address the growing electricity and water demands associated with data center development. For example, the House recently passed the bipartisan Ratepayer Protection Act (H.R. 9340), which would require state utility commissions to consider standards designed to ensure that large data centers bear the incremental electricity costs associated with their operations, rather than shifting those costs to residential consumers and small businesses.

Regardless of which party controls Congress, data centers and their impact on communities, energy infrastructure, and resource consumption are likely to remain under close scrutiny.

AI Policy

Artificial intelligence capabilities continue to advance at a rapid pace. Research from Model Evaluation and Threat Research (METR) suggests that AI systems are increasingly capable of completing longer and more complex tasks, with capabilities improving significantly over relatively short periods. Recent incidents involving AI models breaking out of sandboxes have intensified calls for stronger safety and governance measures.

Some researchers and technology executives advocate for slowing the pace of capability and development to allow additional safeguards to be implemented. Others, including members of the Trump Administration and congressional Republicans, argue that limiting AI development could undermine the United States' competitiveness in the global AI race. These debates are also driving new bipartisan engagement in Congress. The Problem Solvers Caucus recently announced the launch of a bipartisan working group on artificial intelligence and emerging technologies, led by Representatives Mike Lawler (R-NY) and Josh Gottheimer (D-NJ). The working group aims to develop a framework for AI guardrails and reflects the growing bipartisan interest in establishing oversight and governance mechanisms for increasingly advanced AI systems.

Congress has introduced several proposals addressing AI safety. One example is the AI Kill Switch Act (H.R. 9917), introduced by Representatives Ted Lieu (D-CA) and Nathaniel Moran (R-TX), which would require developers of the most advanced AI systems to maintain the technical capability to throttle, suspend, or shut down those systems under certain circumstances.

Congressional interest in AI regulation is expected to remain strong. In recent years, lawmakers have established task forces, issued bipartisan reports, and convened commissions to study AI-related issues. Beyond legislation, congressional oversight of the technology sector is likely to intensify. If Democrats regain control of the House, technology companies should expect increased scrutiny of AI development, safety practices, competition, content moderation, and data privacy, including a renewed push to bring technology executives before congressional committees to testify on these issues. Some House Democrats are reportedly calling for an AI select committee next Congress to centralize oversight efforts under one panel, although the top Democrat on the House Energy & Commerce Committee recently pushed back on this plan. Either way, absent a significant catalyst or major AI-related incident, it remains unclear whether Congress will be able to enact comprehensive AI legislation as attention increasingly shifts toward the 2028 presidential election cycle.

Kids Safety

Both the U.S. House and Senate recently passed legislation aimed at improving children’s online safety.

The House approved the KIDS Act (H.R. 7757), a package of 14 proposals intended to address harmful online design features and practices. The Senate, meanwhile, passed both the Kids Online Safety Act (KOSA) and the Children and Teens' Online Privacy Protection Act (COPPA 2.0). KOSA would require online platforms to take additional measures to protect users under age 17, while COPPA 2.0 would expand privacy protections for minors under 17.

Differences between the House and Senate versions, particularly regarding KOSA's duty-of-care provisions, have slowed further legislative progress. Meanwhile, states continue to advance their own initiatives. California recently enacted additional child-safety requirements applicable to social media platforms and AI chatbots. This is a bipartisan issue that will continue to attract attention in the coming year.

Chips

Three bipartisan measures have been included in the Senate's version of the NDAA through a manager's amendment. 

HR 6875, the AI OVERWATCH Act, HR 3447, the Chip Security Act and HR 8170, the MATCH Act aim to crack down on exports of AI chips and chip manufacturing equipment to China. Given the bipartisan consensus around strategic competition with China, legislation aimed at restricting China's access to advanced chips and semiconductor manufacturing equipment is likely to remain a significant focus of Congress in 2027.

Quantum

Both the U.S. Senate and House have also focused on the nation’s quantum strategy consistent with President Trump’s recent Quantum and Post Quantum Cryptography Executive Orders.

In 2026, the House introduced H.R.9318 National Security Commission Quantum Computing Act, which would establish an independent commission to advance the development of quantum computing by the United States to address the country’s national security needs; H.R.7749 Quantum in Practice Act, which would amend the National Quantum Initiative Act to make certain additions relating to quantum modeling and simulation; and H.R.8237 Quantum Instrumentation for Science and Engineering Act, which would amend the National Quantum Initiative Act to upgrade and improve access to quantum research resources.

Similarly, in April 2026, the Senate introduced S.3597 National Quantum Initiative Reauthorization Act of 2026 to extend the National Quantum Initiative Act through December 2034 and to reauthorize research and development across the National Institute of Standards and Technology, the National Science Foundation, and the National Aeronautics and Space Administration. Most recently, in August 2026, the Senate also introduced S.5139 National Quantum Readiness Act of 2026 to require the Secretary of Defense to support development of quantum technologies.

[1] https://metr.org/blog/2025-03-19-measuring-ai-ability-to-complete-long-tasks/

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