FTC AI rules

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.