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Congressional Bill Would Give Federal Agencies Power to Regulate AI That Violates Existing Law

Federal agencies can now weave AI rules into existing laws and enforce compliance when AI drives violations.

 

Rep. Sara Jacobs (D-CA-51) introduced the Sectoral AI Governance Act (H.R. 9125), giving federal agencies explicit authority to write and enforce rules when AI violates a law they already oversee. Consumer protection, employment discrimination, fair housing, financial services, and healthcare all fall within scope.

 

What the bill does

Any agency with enforcement authority over a federal law can issue rules targeting AI systems that contribute to violations of that law. A violation of those rules is enforced as a violation of the underlying federal law itself, meaning existing civil and administrative penalties apply.

The bill covers any AI or statistical system that influences a decision, across any area of federal law. The bill explicitly excludes tools that only store or transmit data.

Before issuing rules, agencies must provide 60 days’ public notice and consult the Office of Information and Regulatory Affairs (OIRA) to avoid conflicts with other agencies. The Office of Science and Technology Policy (OSTP) and the National Institute of Standards and Technology (NIST) review the technical characteristics of any AI system before the agency writes rules for it. Rules must be reviewed every three to five years and updated or dropped if the technology or the law has changed. Agencies that choose not to issue rules must publish reports to Congress every two years explaining why. Agencies that do regulate must report enforcement actions on the same schedule.

 

The bill preserves state authority to regulate AI, except where state rules directly conflict with a federal rule issued under the act.

H.R. 9125 was referred to the House Judiciary Committee and the Committee on Oversight and Government Reform.

Clayton Rifkind

Clayton Rifkind is the Founder and Senior Editor of AI Risk Today. He also advises on business development for ESG Today, a leading source of ESG investment news and research for institutional investors and corporate leaders. He has 20+ years of experience in B2B technology, leading strategy and execution of go-to-market plans across software, enterprise platforms, and mobile applications. He founded two consultancies advising startups and Fortune 1000 companies, including Autodesk, Intel, and Microsoft. He began his career in the San Francisco advertising scene working with brands such as Hewlett-Packard, Intel, Microsoft, Symantec, and Wells Fargo. Clayton launched AI Risk Today in 2025 after two decades of watching enterprises adopt transformative technologies, and seeing how often risk, governance, and compliance considerations lagged behind. His reporting draws on primary sources including regulatory filings, court documents, and official announcements, with a focus on what AI developments mean for the executives accountable for managing them. Reach him at Reach him at [email protected] or on LinkedIn.

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