POLITICO Tech Podcast: "Congress is Back with a Long Tech To-Do List"

Release Date: November 11, 2024
Host: Stephen Overlea
Guest: Brendan Bordelon
Podcast: POLITICO Tech

Introduction: The Political Landscape and Its Impact on Tech Legislation

As Congress reconvenes amidst the aftermath of the recent elections, the political tides are shifting significantly. Democrats face a tight window to pass essential bills before potentially losing control of the White House and Senate, while Republicans gear up to capitalize on increased power, especially if they maintain control of the House. This transition period, often referred to as the "lame duck" session, is poised to be particularly active for technology legislation, addressing long-pending issues such as artificial intelligence (AI), spectrum authorization, and online safety for children.

Stephen Overlea (00:14):
"Congress returns to Washington tomorrow with the results of last week's election hanging overhead. Democrats have just a few weeks to pass bills before losing control of the White House and Senate."

Brendan Bordelon (01:22):
"The sense is it's going to be pretty packed... Democrats in particular want to move as much as they can before they're out of power for at least the next two years."

Artificial Intelligence (AI) Legislation: Piecemeal Progress Amidst High Stakes

AI remains at the forefront of Congressional priorities, with numerous bills under consideration, many of which may be attached to the National Defense Authorization Act (NDAA). The NDAA serves as a critical vehicle for advancing AI-related legislation, with approximately 70 AI-focused bills being debated. Key proposals include:

• AI Research Innovation and Accountability Act: Sponsored by Senators John Thune and Amy Klobuchar, this bill aims to establish baseline regulations for high-risk AI systems, including enforceable testing and evaluation standards. It mandates that leading AI companies submit transparency reports to Washington for safety oversight.

  Brendan Bordelon (04:27):
  "The AI Research Innovation and Accountability Act... would create some rough ground rules for AI... require companies to submit these transparency reports to Washington for safety purposes."
  (Timestamp: 04:27)

• Create AI Act: Focused on democratizing AI research, this legislation proposes the creation of the National AI Research Resource, a public-facing cloud computing platform to enable academic and independent research on advanced AI models.

  Brendan Bordelon (05:15):
  "The Create AI Act would create the National AI Research Resource... an effort to kind of democratize computing power currently held by tech companies."

• Defamation Act & Enforce Act: These bills address the misuse of AI in creating deepfake pornography and impose export controls on AI systems deemed dangerous, respectively.

  Brendan Bordelon (05:20):
  "The Defamation Act would let people sue over deepfake pornographic content... The Enforce Act would let the government impose export controls on AI systems deemed dangerous."

While comprehensive AI legislation remains unlikely within this Congress, these piecemeal efforts collectively aim to establish significant regulatory frameworks for emerging AI technologies.

China-Focused Tech Policies: Safeguarding Against Foreign Threats

Bipartisan concerns about Chinese technological advancements continue to drive legislative efforts aimed at mitigating potential threats. Key initiatives under consideration include:

• Routers Act: This bill mandates a government study of the security risks associated with Internet routers and modems, particularly those manufactured in China, to identify vulnerabilities in critical infrastructure.

  Brendan Bordelon (08:35):
  "The Routers Act will require the government to study security risks posed by Internet routers and modems, many of which are cheaply made in China."

• Chip Equip Act: Addressing the semiconductor supply chain, this legislation offers $39 billion in subsidies to domestic chipmakers but restricts these companies from purchasing chip-making equipment from foreign entities of concern, primarily targeting China.

  Brendan Bordelon (09:35):
  "The Chip Equip Act extends subsidies to domestic chipmakers but bars them from buying equipment from foreign entities of concern, mainly China."

These measures reflect Washington's ongoing strategy to reduce dependence on Chinese technology and enhance national security.

Telecom and Spectrum Legislation: Navigating a Complex Agenda

Telecom legislation, particularly spectrum auction authorization, remains a critical yet contentious issue. The expired FCC Spectrum Auction Authority is a focal point, as reauthorization is essential for allocating radio bandwidths necessary for various technological applications. The proposed spectrum package includes:

• Rip and Replace Program: Allocating $3 billion to assist wireless carriers in replacing Chinese-made telecom equipment, ensuring national security through safer infrastructure.

• 911 Technology Upgrades: Redirecting $2 billion to modernize emergency communication systems.

• Affordable Connectivity Program: Revitalizing this broadband subsidy to support low-income households, although it faces resistance due to concerns over eligibility criteria.

Brendan Bordelon (10:17):
"The spectrum package includes $3 billion for rip and replace programs, $2 billion for 911 technology upgrades, and $5 billion for affordable connectivity... However, Republicans are likely to oppose the broadband subsidies."

Given the broad scope and substantial funding requirements, bipartisan support is fragmented. While security-focused elements like the rip and replace program may gain traction, larger spending measures are expected to face significant hurdles, potentially relegating comprehensive spectrum legislation to the next Congress.

Kids Online Safety Legislation: A Rare Beacon of Bipartisanship

The Kids Online Safety and Privacy Act stands out as a proposal with notable bipartisan support, aimed at enhancing online safety and privacy for minors. Despite its favorable reception in the Senate, where it passed with a 91-3 vote, the bill faces challenges in the House due to opposition from Republican leadership.

Stephen Overlea (12:24):
"Kids online safety legislation has broad bipartisan support, but House Republican leadership has reservations, particularly regarding specifics of the bill."

Brendan Bordelon (12:58):
"House Majority Leader Steve Scalise has issues with the bill, causing it to stall since it was sent to the House in July."

The divergence between Senate approval and House resistance highlights the complexities of pursuing consensus in a divided Congress. While advocates push for its passage, the likelihood of the bill advancing appears slim, potentially delaying critical protections for children online until the next legislative session.

Data Privacy Legislation: Stalled Ambitions

Data privacy remains a contentious and largely stagnant area in current legislative efforts. Despite ongoing discussions and bipartisan talks, significant progress on comprehensive data privacy laws has been elusive for multiple Congresses.

Stephen Overlea (14:44):
"Data privacy legislation is likely dead on arrival in the lame duck session, disappointing advocates who have consistently pushed for its advancement."

Brendan Bordelon (14:50):
"Privacy legislation is considered dead on arrival, with House Republican leadership showing little interest in moving the bill forward."

This lack of movement suggests that data privacy will remain unaddressed in the immediate legislative landscape, awaiting renewed focus in future congressional sessions.

Budget and Spending on Tech Agencies: Limited Movement Expected

Proposals for significant funding in technology agencies and scientific research face formidable obstacles. Despite rhetoric from Republicans about supporting science and technology to counteract China's rise, actual budget allocations reflect a reluctance to commit substantial funds.

Brendan Bordelon (15:20):
"Republicans have spoken about supporting science and technology, but when it comes to actual spending, especially in big-ticket items like the spectrum package, they pull back."

This cautious approach indicates that while strategic priorities are emphasized, tangible financial support for tech initiatives is unlikely to materialize during the lame duck period.

Conclusion: A Critical Yet Uncertain Path Forward

As Congress navigates this transitional phase, the intersection of technology and politics remains a dynamic battlefield. While certain areas like AI and China-focused policies may see incremental progress, broader initiatives such as comprehensive AI legislation, data privacy, and substantial tech funding face significant uncertainties. The looming shift in political power adds an additional layer of unpredictability, shaping the trajectory of technology policy in the United States.

Stephen Overlea (15:47):
"It sounds like a lot to watch for the next couple of months. We'll have to check in with Brendan again, but thanks for being here on Politico Tech."

Brendan Bordelon (15:55):
"It's going to be a busy two and a half months. Thanks for having me. We'll talk again soon."

As the lame duck session unfolds, stakeholders and observers alike will be closely monitoring these developments, recognizing the profound implications for the future of technology and policy.

Notable Quotes:

• Brendan Bordelon (01:22):
  "The sense is it's going to be pretty packed... Democrats want to move as much as they can before they're out of power for at least the next two years."

• Brendan Bordelon (04:27):
  "The AI Research Innovation and Accountability Act... would create some rough ground rules for AI... require companies to submit these transparency reports to Washington for safety purposes."

• Brendan Bordelon (08:35):
  "The Routers Act will require the government to study security risks posed by Internet routers and modems, many of which are cheaply made in China."

• Stephen Overlea (14:44):
  "Data privacy legislation is likely dead on arrival in the lame duck session, disappointing advocates who have consistently pushed for its advancement."

Final Thoughts:

The "lame duck" session presents both opportunities and challenges for technology legislation. While the urgency to act before potential political shifts drives some momentum, deep-seated partisan divisions and budgetary constraints temper expectations. Stakeholders must remain vigilant, recognizing that the outcomes of these legislative efforts will shape the technological and policy landscape for years to come.