U.S. Democrats plan a wave of AI and data-center bills after taking control of Congress

U.S. Democrats are planning a wave of legislation targeting artificial intelligence systems and data-center development when they take control of Congress in January, lawmakers, congressional aides and advocates told Reuters on Friday, November 6. The plans would mark a sharp shift from the Republican-led Congress, which largely focused on promoting AI development and did not pass legislation restricting aspects of the technology, the agency reported.

The bills under discussion would aim to shield consumers from rising electricity costs tied to data centers, require independent testing of advanced AI systems and clarify when AI companies can be held liable for harm caused by their products.

White House resistance and committee power

Any legislation would face steep odds while Republican President Donald Trump remains in the White House, Reuters noted. Trump has repeatedly dismissed calls to write mandatory rules for AI. On Friday he said he would work with U.S. states that “want to become RICH” by embracing AI, without offering details.

Democratic lawmakers said control of congressional committees would give them a platform to advance proposals, compel testimony from industry leaders and build support if AI systems cause real-world harm. Representative Greg Casar of Texas, chair of the Congressional Progressive Caucus, said this week that AI executives should be called to testify under oath.

Senator Chuck Schumer of New York, who is expected to become majority leader, said on Thursday at an event in Washington that protecting consumers from higher energy costs linked to the rapid expansion of data centers would be among his priorities next year. Francis Grubar, deputy chief of staff to Representative Lori Trahan of Massachusetts, said Trahan plans to push legislation requiring independent experts to evaluate leading AI models against safety standards, and separately to clarify that companies can be held responsible when AI systems act in harmful ways.

Representative Zoe Lofgren of California, who is seeking to chair the House Science Committee, said Democrats would focus on developing “responsible regulations for AI while also fostering innovation.” Abdul El-Sayed, a Michigan Democrat who won a Senate seat on Tuesday, called during his campaign for an independent agency to oversee AI regulation.

Markets and next steps

Technology shares sold off sharply on Thursday on concern that a new Congress will slow AI development and that heavy capital spending on AI infrastructure will not yield sufficient returns, Reuters reported. Federal restrictions could hurt industry profits if they slow the release of new models or force companies to change how their tools perform.

A Reuters poll published in October found that most U.S. voters think the Trump administration and Congress are not taking the risks of AI seriously enough and want the government to write new regulations. Ed Mills, who manages policy research at Raymond James, said “the probability of legislation is much higher than people anticipate.” Congress can override a presidential veto with two-thirds of both chambers, he noted, and Democrats could also try to insert AI rules into routine bills that must pass each year.

In October, Lofgren and other Democratic House committee leaders asked OpenAI, Anthropic, Meta, Alphabet's Google and SpaceX to detail their security practices and report instances of their AI tools taking actions their designers did not intend.

Sources: Reuters via Investing.com, Reuters via CNA