Sponsors (3)
The bill gives federal agencies stronger, more coordinated authority and transparency tools to curb harmful algorithmic outcomes and protect service delivery, at the cost of increased compliance and enforcement risks, potential overbroad coverage of common tools, and slower or more uncertain rulemaking.
People at risk of algorithmic discrimination (e.g., racial/ethnic minorities, people with disabilities) would face fewer unlawful or biased automated decisions because federal agencies are given clearer authority to limit harmful algorithmic uses.
Agency rulemakers and regulated entities (including businesses) would get better-quality, more consistent rules because the bill mandates technical consultation (OSTP, NIST), OIRA coordination, and a coordinated framework for consultation and reporting.
The public and regulated entities would see greater transparency and opportunity for input on government AI regulation due to required advance notice, public comment windows, and biennial reporting.
Companies that develop or use AI systems and federal agencies would face higher compliance costs and staffing needs because of broader rulemaking authority, new rulemaking requirements, periodic review obligations, and ongoing oversight duties.
Small businesses, government contractors, and other regulated entities would face greater legal and enforcement risk because violations of agency AI rules may be treated as violations of underlying laws, increasing exposure to penalties for complex AI-driven outcomes.
Agency rulemakers and regulated entities could experience slowed or uncertain rulemaking because centralized coordination and OIRA oversight (and persistent variation in agency interpretation) may delay final rules and prolong regulatory uncertainty.
Based on analysis of 3 sections of legislative text.
Allows agencies to promulgate notice-and-comment rules restricting algorithmic decision-making systems that materially contribute to violations of the laws they enforce, with interagency consultation and technical input requirements.
Official title: To authorize the head of agencies to issue rules related to the uses of algorithmic decision-making systems that are likely to materially contribute to violations of Federal laws that the agency is authorized to enforce, and for other purposes.
Introduced June 3, 2026 by Sara Jacobs · Last progress June 3, 2026
Creates a cross-agency framework that lets federal agencies adopt notice-and-comment rules to regulate ‘‘algorithmic decision-making systems’’ when the agency determines those systems are likely to materially contribute to violations of the Federal law the agency enforces. Agencies must follow new procedural steps before rulemaking — including advance notice, technical consultation with OSTP and NIST, coordination with OIRA and other agencies to avoid conflicts, and consideration of impacts on government service delivery — and violations of those agency rules are treated as violations of the underlying Federal law for enforcement purposes. Also directs OIRA (in consultation with OSTP) to issue guidance to resolve overlaps and ensure consistent application across agencies, and requires agencies to minimize adverse effects of rules on accessibility, timeliness, integrity, and continuity of government services where practicable. The act aims to provide clearer, coordinated authority to regulate harmful uses of AI while building interagency processes for technical input and conflict resolution.