On June 4, 2026, two bipartisan members of Congress released the discussion draft of the Great American Artificial Intelligence Act of 2026 — a 269-page proposal that would create the first comprehensive federal framework for governing artificial intelligence in the United States.
The bill was put forward by Representatives Jay Obernolte (R-CA) and Lori Trahan (D-MA), with four additional co-sponsors joining them. It targets what the draft calls “frontier” AI models — the most powerful systems trained with enormous computational resources — and builds around four pillars: model governance, workforce impact monitoring, cybersecurity, and AI research funding.
Key proposals in the draft include mandatory semi-annual third-party safety audits for major AI developers, penalties of up to $1 million per day per violation for ongoing non-compliance, and $100 million per year authorised for a Centre for AI Standards and Innovation within the Commerce Department.
The most contested provision is a three-year freeze on state-level laws that specifically regulate how AI models are developed — though states would retain authority over how AI systems are used and deployed within their borders. Supporters argue the preemption prevents a confusing patchwork of 50 different state rules from slowing innovation. Critics, including consumer advocacy group Public Citizen, say it strips states of the ability to protect residents from documented harms that Congress has repeatedly failed to address at the federal level.
The draft is currently in a public comment period before formal introduction.
Sources: Representative Obernolte’s office, FedScoop, Roll Call — June 4, 2026
