Sen. Ted Cruz eyes a regulatory AI sandbox program within OSTP; Drew Myklegard stepping down as deputy federal CIO - The Daily Scoop Podcast

Summary3 min read

The Daily Scoop Podcast – Episode Summary

Date: September 11, 2025

Host: Billy Mitchell

Overview

This episode covers two key topics shaping the federal government’s approach to technology and innovation: Senator Ted Cruz’s proposal for a regulatory AI sandbox program within the Office of Science and Technology Policy (OSTP), and the departure of Deputy Federal CIO Drew Myklegard. The discussion unpacks legislative efforts to foster responsible AI development and reflects on Myklegard’s significant contributions to government technology modernization.

Key Discussion Points & Insights

1. Senator Ted Cruz Proposes AI Regulatory Sandboxes

[00:22 – 02:36]

Legislation Announcement:
- Senate Commerce Committee Chairman Ted Cruz plans to introduce legislation establishing AI sandboxes, providing companies a space to navigate innovation without immediate regulatory constraints.
- The move was announced with a legislative framework for AI policy before a Senate subcommittee hearing on the White House's recent AI Action Plan.
Regulatory Sandbox Concept:
- Regulatory sandboxes were among 90+ policy recommendations in the administration's AI Action Plan.
- Quote [00:57]:
  - Ted Cruz: “Under the Sandbox Act, an AI user or developer can identify obstructive regulations and request a waiver or modification which the government may grant for two years via a written agreement that must include a participant’s responsibility to mitigate health or consumer risks.”
- Emphasized that sandboxes aren’t a regulatory escape:
  - Cruz: “A regulatory sandbox is not a free pass. People creating or using AI still have to follow the same laws as everyone else.” [01:15]
Trump Administration’s Approach:
- President Donald Trump’s administration has focused on removing regulatory barriers and limiting federal funding for states with burdensome AI laws.
OSTP Support:
- OSTP Director Michael Kratsios expressed enthusiasm for working with Cruz on the bill.
- Kratsios highlighted regulatory sandboxes’ prior success in the commercial drone sector.
  - Quote [02:10]: “I have personally seen the power of these sandboxes to allow great American minds and innovators to put their tools to the test in real-life situations and, from there, be able to provide valuable feedback back to the regulators to create the right regulatory frameworks.”
Historical Precedent:
- Trump’s executive order in his first administration created drone operations sandboxes, informing recent FAA drone regulations.

2. Drew Myklegard Steps Down as Deputy Federal CIO

[02:37 – 03:15]

Departure Details:
- Drew Myklegard is leaving his post as Deputy Federal CIO after nearly four years, transitioning to the private sector; his final day will be September 22.
Career Highlights:
- Myklegard, a Biden administration holdover, was appointed in early 2022 after eight years managing IT at the Department of Veterans Affairs.
- He championed several modernization initiatives, including:
  - Reforming federal cloud security authorizations under FedRAMP
  - Rolling out new IT policy
  - Issuing guidance on agency AI tool acquisition and inventory
Recognition:
- Recently honored with the FedScoop50 “Golden Gov Federal Executive of the Year” award.

Notable Quotes & Memorable Moments

Ted Cruz on Sandboxes:
- “A regulatory sandbox is not a free pass. People creating or using AI still have to follow the same laws as everyone else.” [01:15]
Michael Kratsios on Real-world Testing:
- “I have personally seen the power of these sandboxes to allow great American minds and innovators to put their tools to the test...” [02:10]
Recognition of Drew Myklegard’s public service and modernization efforts highlighted the growing emphasis on impactful federal IT leadership.

Important Timestamps

[00:22] – Introduction to the episode’s news topics
[00:45] – Details on Ted Cruz’s AI sandbox legislative proposal
[01:15] – Ted Cruz quote: regulatory sandboxes have rules
[02:10] – Michael Kratsios on the value of sandboxes
[02:37] – Announcement of Drew Myklegard stepping down
[02:50] – Myklegard’s achievements and recent award

Summary

This episode provides an inside look at evolving federal AI policy—balancing innovation incentives with regulatory safeguards—through the lens of Ted Cruz’s proposed sandbox initiative and the OSTP’s strategic backing. It also marks a leadership transition in federal IT, with Drew Myklegard’s departure and recognition, underscoring ongoing efforts to modernize government technology management.

For ongoing federal government and technology news, listeners are encouraged to visit FedScoop.com.

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Transcript4 lines

[00:00]
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Today on the Daily Scoop Podcast from the Scoop News Group, Senator Ted Cruz eyes a regulatory AI sandbox program within OSTP, and Drew Michelgaard is stepping down as Deputy Federal CIO. It's Thursday, September 11, 2025. Welcome to the Daily Scoop Podcast, where.
[00:20]
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You'Ll hear the latest news and trends facing government leaders.
[00:23]
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I'm the host of the Daily Scoop Podcast, Billy Mitchell. Thanks so much for joining me. Now let's dive into the day's top headlines. Senate Commerce Committee Chairman Ted Cruz said he would introduce legislation to establish AI sandboxes to allow companies room to breathe without running up against regulations. Cruise announced that proposal, as well as a legislative framework for AI policy ahead of a Wednesday hearing before the Subcommittee on Science, Manufacturing and Competitiveness on the administration's recent AI Action plan. The concept of regulatory sandboxes were among the more than 90 policy recommendations outlined in that document. Cruz said during the hearing that quote, under the Sandbox act, an AI user developer can identify obstructive regulations and request a waiver or modification which the government may grant for two years via a written agreement that must include a participant's responsibility to mitigate health or consumer risks. Adding that quote, a regulatory sandbox is not a free pass. People creating or using AI still have to follow the same laws as everyone else, unquote. The proposal comes as President Donald Trump has taken an approach to AI that aims to clear the way for companies working on the technology. Identifying and removing regulatory barriers to AI and limiting federal funding to states with AI regulations deemed burdensome, for example, were also recommendations from that plan. During the hearing, White House Office of Science and Technology Policy Director Michael Kratios voiced support for the forthcoming legislation and said he was excited to work with Cruise on the bill. He also said that the approach had already been successful in the commercial drone industry. Grazio said he had personally seen the power of these sandboxes to be able to allow great American minds and innovators to actually put their tools to the test in real life situations and from there be able to provide the necessary valuable feedback back to the regulators to be able to create the right regulatory frameworks. Trump signed an executive order during his first administration to create a pilot program that established sandboxes for drone operations, Krazio said. That work, he explained, was used to help the Federal Aviation Administration develop its recently published draft drone rule. Now to other news Drew Michael Guard is stepping down from his role as deputy federal CIO after nearly four years, Fed Scoop has learned. Two sources with knowledge of the matter said. Michael Guard told colleagues on Monday that he's taking a role in the private sector and that his last day will be September 22nd. A holdover from the Biden administration, Michael Guard was appointed to be Deputy Federal CIO in early 2022 after a more than eight year stint in supporting IT operations at the Department of Veterans Affairs. During his time in the Office of the Federal cio, he championed a number of key government wide technology modernization initiatives, including rolling out a new policy, reforming federal cloud security authorizations under FedRAMP, and guidance on how agencies acquire and inventory their AI tools, among others. On Monday, Michael Guard was also recognized with a FedScoop50 award in the Golden Gov Federal Executive of the Year category. For more news at the intersection of the federal government and technology, make sure to visit fedscoop.com.
[03:38]
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Thanks so much for tuning in to another episode of the Daily Scoop Podcast, available on all podcast platforms. If you've already rated the podcast on your platform of choice, thanks so much. High ratings and good reviews of the show help more people to find it. The Daily Scoop Podcast is a production of the Scoop News Group in Washington, dc. Adam Butler and Carlin Fisher help put the show together and the entire Scoop News Group team contributes. We'll be back tomorrow with more top headlines. Until then, I'm your host. As always, Billy Mitchell. Thanks so much for listening.