One Big Beautiful Bill Act 2025, Section 43201 ("Artificial intelligence and information technology modernization initiative")

Appropriates $500 million to the Department of Commerce for AI-driven system modernization and cybersecurity improvements for Federal information technology systems.

  • Authority: United States Congress
  • Parent authority: Federal government
  • Jurisdiction: United States
  • Collections: Editors' Picks;U.S. federal laws
  • Most recent activity: Proposed
  • Most recent activity date: 2025-05-20

Risk subdomain coverage

Minimal coverage — Brief mention but no specific mitigations, recommendations or governance measures relating to the risk subdomain are described.

  • AI system security vulnerabilities
  • Governance failure

All other risk subdomains had no coverage in this document.

Risk Coverage Summary

The document has minimal coverage of AI risk domains, with limited implicit references to security vulnerabilities (2.2) through cybersecurity improvements and potential implicit coverage of governance failure (6.5) through the moratorium on state AI regulation. Most risk domains are not substantively addressed as the document focuses on appropriations and regulatory preemption rather than risk mitigation.

Sector coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the sector are explicitly described.

  • Public Administration (excl. National Security)

All other sectors had no coverage in this document.

Sectors Summary

This document primarily governs AI use within the Public Administration sector (Department of Commerce operations). The moratorium provision creates a cross-sectoral regulatory framework affecting all sectors by preempting state AI regulation for systems in interstate commerce, though this is regulatory preemption rather than direct governance of AI use in those sectors.

Legislative Status

Hard Law

Legislative Status Summary

This is a binding federal statute with mandatory appropriations, explicit prohibitions on state enforcement, and legally enforceable provisions creating federal preemption of state AI regulation.

Actors

Proposer

  • Entity Types: AI_Governance_Actor
  • Entities: United States Congress
  • Summary: The document is identified as legislation from the United States Congress, which is the proposing and enacting authority for this federal statute.

Target

  • Entity Types: AI_Governance_Actor, AI_Developer, AI_Deployer
  • Entities: Department of Commerce; State governments; political subdivisions of states
  • Summary: The document targets the Department of Commerce as the recipient of appropriations and implementer of AI modernization. It also targets state and local governments by prohibiting them from enforcing AI regulations during the moratorium period. Implicitly, it affects AI developers and deployers whose systems enter interstate commerce.

Enforcer

  • Entity Types: AI_Governance_Actor
  • Entities: Department of Commerce; Federal courts
  • Summary: The Department of Commerce is responsible for implementing the appropriations provisions. Federal courts would enforce the moratorium on state AI regulations through federal preemption doctrine, though no specific enforcement body is named for the moratorium.

Monitor

  • Summary: No monitoring body, oversight mechanism, or evaluation process is specified in the document. The appropriations are available until 2034, but no monitoring or reporting requirements are established.

AI Lifecycle Stages

Lifecycle stages covered by the documents, as defined in the OECD Framework for the Classification of AI Systems

  • Deploy
  • Operate and Monitor

AI Lifecycle Summary

The document primarily addresses the Deploy and Operate and Monitor stages through appropriations for modernizing federal IT systems with AI and automated decision systems. It does not substantively cover earlier lifecycle stages like planning, data collection, or model building.

Technical Scope

Terms relating to technical scope that are mentioned or implicitly referenced in the document

  • AI Models
  • AI Systems

Technical Scope Summary

The document explicitly defines and covers AI models, AI systems, and automated decision systems. It does not mention frontier AI, general purpose AI, foundation models, generative AI, predictive AI, open-weight models, or compute thresholds.

https://www.congress.gov/bill/119th-congress/house-bill/1/text
https://agora.eto.tech/instrument/2425
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Document data from AGORA, CSET Emerging Technology Observatory.