Congress is back with a long tech to-do list

Summary

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

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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.

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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."

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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.

Transcript

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[Stephen Overlea]

Hey, welcome to POLITICO tech. Today's Monday, November 11th. I'm Stephen Overlea. 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. And Republicans are preparing to wield a lot more power, especially if they hang on to the House. But the lame duck period could actually be a busy time for tech. Congress has let legislation languish on issues like artificial intelligence, spectrum authorization and kids online safety, and some lawmakers are eager to get them done. My Politico colleague Brendan Bordelon is back on the show today to tell me what he'll be watching for in the weeks ahead. Here's our conversation. Hey, Brendan, welcome back to POLITICO Tech.

[Brendan Bordelon]

Hey, Stephen, thanks for having me again.

[Stephen Overlea]

So Congress is back in session this week fresh off of the election. How packed is their tech agenda for the next two months?

[Brendan Bordelon]

Well, it's ultimately going to be up to congressional leadership what they choose to prioritize, but the sense is it's going to be pretty packed. In part, that's just sort of a, I think sense from Democrats in particular, that after the election results, they just want to try to move as much as they can before they're out of power for at least the next two years. And I think even more than that, it's also just a sense of how many tech priorities have sort of piled up over the last two years throughout this cycle. It's kind of notable that the only real tech legislation that was able to move, at least high profile tech legislation that was able to move across the finish line this Congress was the TikTok ban bill that moved very, very quickly through Congress and it was signed by President Joe Biden. Pretty much every other tech bill kind of nibbled around the margins of these much larger issues. When it came to obviously AI, there was a lot of talk there, but vanishingly few bills that have actually passed and become law so far. Data privacy for the third, fourth Congress in a row kind of fizzled despite bipartisan talk. Once again, this very large spectrum package in the Senate that was sort of packed with all of these other tech policy priorities and billions of dollars for various tech agencies and tech projects that went nowhere in the Senate so far at least, Kids privacy and safety has been stalled in the House So there's really just this big traffic jam on tech. And I think a sense with both parties, not just Democrats, that some of this stuff should move before the new administration and the new Congress takes over.

[Stephen Overlea]

When Congress returns this week, a lot of them have a very different political calculus coming off of election night. Right. I mean, Republicans are very successful in taking the White House and the Senate. They may also have the House. How much incentive do they have to pass anything?

[Brendan Bordelon]

Yeah, I do think at some level it's going to depend on how the House shakes out. That is looking, I think, very good for Republicans at the moment. If they do take the House, though, I think, yeah, Republicans understandably will think, hey, we've had these bipartisan talks on things like spectrum, on things like privacy. But you know, when it comes to kid safety to a certain extent and when it comes to divided government, then, you know, maybe we'll take the best thing we can get. But we're just a few months away from basically writing our own checks, doing whatever we want. Maybe it doesn't make sense work with the Democrats on this. Maybe we can, you know, just sort of start from square one and do our own priorities. I think you will see that on some of these issues. I think maybe the. The spectrum package that has been stalled in the Senate for some time now. This was a bill that would reauthorize the FCC Spectrum Auction Authority, but would also put a ton of money into all sorts of new tech projects. Really like things that have been percolating for some time on the Hill. Republicans have not been super happy about that approach, and I don't necessarily think they're going to be willing to compromise with Democrats on that. But there are a lot of other things that I think Republicans would like to see done that have been stuck in the tech pipeline, particularly around AI Also some stuff around China, and they might just want to get that off their plate so that they can work on new things when they take over next year. So we'll probably see a split on that front.

[Stephen Overlea]

Got it. Well, let's dig into some of those things that might get done in the lame duck, starting with artificial intelligence, because there are a number of bills that could be attached to the National Defense Authorization act, which Congress does have to pass by the end of the year.

[Brendan Bordelon]

Yeah, yeah. So we should say, you know, one reason why the lame duck is such a hotbed of activity is because there are these bills that have to move every year, at least theoretically, they always do move. The top one is that year end defense bill the ndaa. And there is a lot of chatter on passing or attaching. At this point it's around 70 bill bills that are up for consideration, mostly actually around AI and China. That would probably go on the bill or at least are being debated to go on the bill. I think open question whether they all get there. There are a lot of things that Republicans would like to see in AI get across the finish line before January 20th. Maybe the highest profile is the AI research innovation and Accountability Act. So this is legislation from Senators John Thune and Amy Klobuchar. Our readers might know that John Thune is sort of on the short list to be majority leader next con. So this is a high priority for him and I expect that might matter the fact that he is poised to be leader. What the bill would do, it would create some sort of like some rough ground rules for AI. It's pretty light touch, but it would put some enforceable testing and evaluation standards for high risk AI systems. It would require companies sort of at the leading edge of AI to submit these transparency reports to Washington for safety purposes. So that's a big one. And then there's also some bills that have some bipartisan support largely around like AI research. So the biggest one there is probably the Create AI AI act that would create the National AI Research Resource, which is basically just like a public facing cloud computer that would let academics work on advanced AI models. Right now I think most of the computing power is in the tech companies. So there's an effort to kind of democratize that, I guess. And then just some more funding for AI research. I think that's likely to end up in the NDAA in some capacity. The other thing would be things like the Defiance act that lets people who have deep fake pornographic content created polluting sort of their likeness through AI, they'd be able to sue people who created that. That's a big issue. If people remember kind of the whole Taylor Swift debacle earlier this year. And then there's also the Enforce act that's sort of being debated. And this would let the government impose export controls on AI systems that Washington finds, you know, dangerous. That's probably targeted towards places like China or Russia. But you know, it could go broader than that. So really the gamut, I think those are probably likely to have bipartisan support. So we'll see how those move. But I think strong chance that the NDAA will be a vehicle for a lot of that.

[Stephen Overlea]

Got it. So we may not get the comprehensive AI bill out of this Congress that some thought would happen, but instead a bunch of piecemeal legislation that does add up to some significant rules around the new technology.

[Brendan Bordelon]

Yeah, definitely not the big sort of ticket approach that Chuck Schumer and some of his lieutenants were talking about earlier this year that was either like, you know, comprehensive rules around the technology or especially they were interested in tens of billions of dollars in AI research that the government would support and that would I guess trickle out to the academic community and the private sector. That is definitely not on the table for the lame duck and I would be surprised if that's on the table next Congress. Republicans don't like spending lots of money. That Nair, the public facing cloud computer I was talking about a second ago, that bill would just authorize that and I think throw like a few hundred million dollars its way. But people say that would need, you know, 3 billion, 5 billion more to actually be functional. So it's just early days on that. And I don't know if we're actually going to see a lot of these research bills actually get the teeth they need to be successful. So yeah, TBD on how effective this AI push will actually be.

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[Stephen Overlea]

You mentioned some bills kind of targeting Chinese made technology and the NDAA sort of in many ways is often a vehicle for China related legislation. What might make the list this time around?

[Brendan Bordelon]

Yeah, so there's a lot of non tech related legislation targeting China that I think is being debated right now for inclusion in the ndaa. But some of it is focused on tech, so the Routers act is one of them. It will require the government to study security risks posed by just Internet routers and modems. China makes those very cheaply and they're embedded in various aspects of the economy I think probably also at the government at some level. So just trying to see if there's any Chinese hardware concerns. Thirdly, there's also the Chip Equip act, so listeners are probably aware that there's this big subsidy program that Washington is pushing for domestic chipmakers to come and build chips in the United states. There's like $39 billion in manufacturing subsidies. If this bill passes through the NDAA, those companies that take money from Washington would be unable to buy chip making equipment from what the bill calls foreign entities of concern. Now, realistically, they're really only talking about China. So this is sort of an extension of what we've heard for a while from Washington and the action we've seen where there's a lot of concern about Chinese hardware in the United States, tech hardware, this also extends the telecom sector and we can talk about that in a second because there's action there in the lame duck as well potentially. But really it's just Washington's fear that Chinese technology in various parts of the ecosystem and the economy could end up somehow being used against us or being a threat. And there's more bills in the pipeline that would take care of that.

[Stephen Overlea]

And that's a concern that is bipartisan.

[Brendan Bordelon]

Very much so.

[Stephen Overlea]

Democrats. Yeah. And Republicans have both talked about, you mentioned telecom, both, you know, some rip and replace for Chinese made telecom equipment, but also kind of big spectrum legislation that Congress just hasn't been able to pass yet. What are you anticipating from the lame duck on the telecom front?

[Brendan Bordelon]

Sure. So before the election, our colleague John Hendl heard from Senator Chuck Schumer's office, this is the current majority leader, that there was interest in moving this big spectrum package in the lame duck. So basically this bill is centered around the Federal Communications Commission's expired spectrum auction authority. This is how industry gets sort of like radio bandwidths to use for a variety of purposes. That expired earlier this year and has not been reauthorized, but it's basically been used as sort of a tech vehicle for a bunch of other things as well. So you mentioned rip and replace. So it has $3 billion to spend on wireless carriers who are being forced to rip out Chinese made telecom equipment. $3 billion to replace money that came from actually those chip manufacturing subsidies. It was carved out for a separate national security project. The Senate wants to put that money back in $2 billion to upgrade the nation's 911 technology. So that's like a, you know, emergency phone call situation. 5 billion for research at NIST. 2 billion for regional tech hub projects. More money to revive this affordable connectivity program. This was a broadband subsidy program that helped about 23 million low income households pay for high speed. That ran out of money this year. Some of these things are going to be more popular than others for Republicans. So you know, this entire package I would see, I don't expect to move across the finish line because you know, Republicans are not going to want to spend all this money. There's a lot of concern about the broadband subsidies in particular, which households are eligible for that money that is not included in this. I think that's probably dead on arrival because Republicans are worried that too many households are accessing this. The China stuff, though, I think, you know, I think that could move out of a spectrum package. I think folks have wanted to finish the rep and replace program for some time, make these wireless carriers whole. So you might see that move. I think the most likely scenario will be bits and pieces of that spectrum package that are bipartisanly supported, ripped out and replaced, I guess in the NDAA in some capacity. So that is probably what I'm going to see there. I think some of this, these big ticket spending items, I don't think Republicans are going to work with Democrats on that and they'll probably wait to do their own thing next year.

[Stephen Overlea]

Yeah, that's as you were listing all of those price tags. All I could think of was I don't see Republicans spending all this money, especially when you know they're about to take control and might look to slash some budgets and if Elon Musk has his way, slash some federal agencies. So one piece of legislation, though, that of everything discussed seems to have had such broad bipartisan support, and that is the kids online safety legislation. I mean, there has been opposition to that from progressives, but ultimately there is a lot of support. What does the road ahead look like for those bills?

[Brendan Bordelon]

So this is what's interesting. Yeah. So the Kids Online Safety and Privacy act, this sort of a mashup of some privacy and online safety approaches for children online. That bill passed out of the Senate 91 to 3 in July, and there is a lot of support for it sort of across the aisle. However, what I and especially some of my colleagues who work on this are hearing is that House leadership, Republican House leadership, is not a fan of this. There are sort of some divisions over specifics in the bill. House Majority Leader Steve Scalise has some issues with it. That's why it's been stalled since the Senate kicked it to the House in July. I think you're right that there is going to be a lot of pressure from both sides to move something on this. But I also think that given what we've seen so far in terms of House Republican concerns here and also just given the election results and the fact that they are now going to probably have a chance to put their own print on this without any sort of Democratic, major Democratic input, this might be an issue that pushes the next cycle that would be pretty disappointing for the kids. Privacy and safety advocates who have pushed very hard here. But I think that's probably most likely what we're going to see. It could be wrong, could be something that they decide to just get off their plate. But that's not what we're hearing at the moment.

[Stephen Overlea]

That's interesting. Yeah. And maybe that depends, too, if Republicans do, in fact hold on to power in the House in the next Congress. So I just want to end it. We've talked about a lot of things that could get taken up. Although it all sort of has a question mark on it. I wonder if there's anything that's almost certainly not going to come up in the lame duck. And in my mind, data privacy legislation is sort of the first thing. I don't see them breaking gridlock on that in the next couple of months. I could be wrong, but I wouldn't expect that. Is there anything that you feel pretty confident is just not going to make any progress in this period?

[Brendan Bordelon]

Yeah. So I think that's right, Stephen. I think privacy legislation is likely DOA in the lame duck. That's obviously going to be disappointing for Kathy McMorris Rogers. She's the chair of the House Energy and Commerce Committee and had made this sort of a key priority for her on her way out. She's retiring at the end of this year. But again, House Republican leadership was uninterested in moving that bill forward. And I think especially now that Republicans are looking at a probable trifecta, they're probably going to want to put their own mark on privacy without so much Democratic input this time. So I think there's certainly very little that's going to move there. The other thing I think is just what we talked about earlier, and that's all the big spending on tech agencies and science R and D and that kind of thing that was in the spectrum package. I think obviously Republicans have talked a big game about spending money on science and technology in order to combat the rise of China. But when the chips are down, they usually don't put money into these budgets. They haven't done it so far. I expect that to continue. So I don't expect a lot of movement on those big ticket budget items when it relates to science and tech.

[Stephen Overlea]

Well, I mean, it sounds like a lot to watch nevertheless, for us the next couple of months. So, Brendan, we'll have to check in with you again, but thanks for being here on Politico Tech.

[Brendan Bordelon]

Yeah, it's going to be a busy two and a half months but thanks for having me. We'll talk again soon.

[Stephen Overlea]

That's all for today's Politico Tech. For more tech news, subscribe to our newsletters, Digital Future Daily and Morning Tech. Our managing producer is Annie Reese. Our producer is Afraid Abdullah. I'm Stephen Overlay. See you back here tomorrow.