Congressional representatives release draft bill proposing federal AI regulation framework with transparency and safety requirements

Reps. Lori Trahan (D-Mass.) and Jay Obernolte (R-Calif.) released a draft bill on Thursday establishing a federal framework for AI regulation, including requirements for transparency about cybersecurity risks of frontier models, independent safety audits, incident reporting, and whistleblower protections.

The proposal would require companies to report when AI technology is a 'substantial factor' in mass layoffs, and would preempt state laws governing model development for three years—a provision critics argue would prevent states from enacting stronger AI safety rules.

The lawmakers are seeking stakeholder feedback on the proposal before formally introducing it, as Congress debates how to address a patchwork of state AI laws with a closing window for congressional action this year.