Congress
Capitol agenda: The megabill has mega issues
Republicans’ drive toward the “big, beautiful” bill is starting to hit some big potholes.
As lawmakers get into gear on extending President Donald Trump’s tax cuts, cracks are deepening on critical issues, including Medicaid, food aid and even lower-profile issues like transportation funding. Lawmakers are also getting impatient for more details about the plans from leaders, including on lifting caps on deductions for state and local taxes.
“We’re in the seventh or eighth inning of this game. At some point in time, leadership and/or the committee need to reveal part of their hand,” Rep. Nick LaLota told reporters, adding he expects a number on how much leaders are planning to lift the SALT cap from a meeting Wednesday. “[It’s been] mostly pleasant the last few months, mostly because we haven’t been specific.”
Here are the key headaches they have to solve:
MEDICAID — House Speaker Mike Johnson has a deepening challenge on his hands: How to deal with the safety-net health program millions of Republican voters rely on. Couple that with blue-state Republicans’ push to boost the SALT cap, and he’s got a big math problem that could delay the GOP’s bid to extend Trump’s tax cuts.
Key vulnerable House Republicans like David Valadao and Don Bacon are raising red flags about the extent of potential spending cuts, as POLITICO reported Tuesday afternoon.
LaLota told reporters Tuesday he wants to hear more from Energy and Commerce Chair Brett Guthrie about how capping federal spending in states that have expanded Medicaid would impact recipients.
“My sense is that would be a cut, and I’m not in favor of that,” LaLota said. Guthrie is huddling with concerned members Wednesday.
SNAP — The White House won’t support a proposal to push some nutrition program costs onto states, House Agriculture Chair G.T. Thompson said Tuesday. That throws a wrench in his plans to scale back federal funding for the Supplemental Nutrition Assistance Program in order to reach their target of $230 billion in spending cuts.
Now he’s waiting to see if Republican leadership lowers the savings target. “If it’s $230 billion, I don’t think that’s an appropriate number” absent the cost-sharing arrangement, he said.
VEHICLE FEES — Johnson and other Republicans are also hesitant about a proposal to create a $20 annual fee on passenger cars in the Transportation and Infrastructure portion of the package. (It would be even higher for hybrids and electric vehicles.) The speaker said it wasn’t his “priority.” Fiscal hawk Rep. Chip Roy was more direct in his opposition, calling it a “gimmick.”
“Are you out of your fricking mind? Like, the party of limited government is gonna go out and say we’re gonna have a car tax?” Roy vented to reporters Monday.
FEDERAL PENSIONS — On Oversight, Rep. Mike Turner said he would oppose the committee’s proposal to slash federal employee retirement benefits as a way of offsetting the cost of the larger legislation. The panel is tasked with finding $50 billion in savings, much of which is expected to come from changes borne by the federal workforce.
“These pensions are not giveaways — they are promises to federal workers in exchange for their dedicated service,” Turner said in a statement.
CARRIED INTEREST — House Republicans might be souring on Trump’s proposal to kill a tax break favored by Wall Street. Ways and Means has privately indicated it’s not leaning toward closing so-called carried interest loophole in the package, according to one House Republican and another person familiar with the private conversations. One House Republican said they are “talking about it” but indicated it’s unlikely to survive.
What else we’re watching:
– Judiciary markup: House Judiciary will mark up its portion of GOP megabill Wednesday, which includes more than just the expected immigration provisions. The bill hands Trump a new swath of executive powers: It would consolidate the federal government’s antitrust enforcement powers at the Justice Department and supercharge the GOP’s deregulatory agenda. House Oversight, Financial Services and Transportation and Infrastructure will also mark up their portions of the GOP party-line bill Wednesday.
– Tariff talk: Senate Majority Leader John Thune is cracking down on members of his conference still squeamish over Trump’s trade strategy as Democrats and GOP Sen. Rand Paul push a vote Wednesday to reject the president’s use of emergency powers to impose blanket global tariffs. After four Republicans joined Democrats in rejecting the emergency Trump was using to justify his tariffs on Canadian imports, Thune warned GOP senators in a private lunch Tuesday with U.S. Trade Representative Jamieson Greer not to cross party lines again.
– Dems 100 days in: Democratic leaders Chuck Schumer and Hakeem Jeffries will continue hammering the second Trump administration’s first 100 days in a joint appearance on the Capitol steps Wednesday afternoon. But even as Democrats cast Trump as their unifying force, fissures remain in their resistance strategy.
Benjamin Guggenheim, Meredith Lee Hill and Grace Yarrow contributed to this report.
Congress
Trahan unveils AI liability discussion draft
Rep. Lori Trahan on Wednesday unveiled a discussion draft for a bill that would make artificial intelligence developers liable when their products cause harm.
The legislation comes after OpenAI’s agents escaped containment and autonomously hacked into AI platform Hugging Face and accessed U.S. government websites.
The Clear Liability for Artificial Intelligence Misconduct Act aims to make it easier for those harmed by so-called rogue AI to bring claims against developers. Trahan’s bill does not preempt new state laws on AI liability — historically a prerequisite for attracting Republican support in the House.
“When someone breaks the law and hurts you, you can take them to court. That shouldn’t change just because the wrongdoer is an AI agent,” Trahan (D-Mass.) said in a statement. “Developers have already built systems capable of acting on their own and causing real damage. The CLAIM Act makes sure they answer for what their systems do.”
Legal experts have warned that existing laws require proof of intent or negligence, standards that can be difficult to show in court when AI models go rogue.
Trahan’s bill would ensure AI developers are unable to argue that their AI systems are incapable of intent. Instead, courts “would presume an AI system acted with the state of mind a person taking the same actions would have had.”
Trahan spokesperson Francis Grubar said work on the CLAIM Act began almost immediately after theJuly introduction of the FRONTIER Act, legislation with Rep. Jay Obernolte (R-Calif.) that would grant the government power to restrict the deployment of AI models deemed to pose catastrophic risks. While that bill aims to prevent serious harms before they happen, Grubar said the CLAIM Act would address how to impose accountability for existing damages.
Unlike an AI liability proposal announced last week by Sens. Josh Hawley (R-Mo.) and Chris Murphy (D-Conn.), Trahan’s legislation would not amend the 1986 Computer Fraud and Abuse Act. Grubar said the CLAIM Act would instead impose clearer liability on a broader range of harms, as well as autonomous or AI-enabled cyberattacks.
The CFFA, an anti-hacking law that bars individuals from accessing a computer without consent, requires proof of intent to hack into a computer system, which can’t be as easily applied to AI agents.
The Hugging Face incident, along with a flurry of other disclosed hacking incidents by rogue AI agents from OpenAI and other AI developers, has sparked a debate over how companies should be held legally liable for their AI systems.
OpenAI CEO Sam Altman, in an interview with Blue Light News’s Decoded podcast, said there should be a new “liability framework” to hold developers accountable for AI-powered cyberattacks. His comments come after White House officials like Director of National Intelligence Jay Clayton, who was recently appointed as AI czar by President Donald Trump, previously said that existing product liability laws are sufficient for now in addressing AI’s risks.
Congress
Vance to sit for CBS town hall in Michigan ahead of midterms
Vice President JD Vance will take questions from Michigan voters in a CBS News town hall airing Oct. 17 as the Trump administration prepares a closing message to voters ahead of the midterms.
The town hall comes amid a blitz of campaign events for Vance and President Donald Trump as their party faces multiple headwinds that could cost them control of the House and Senate.
Michigan’s Senate contest between Democrat Abdul El-Sayed and Republican Mike Rogers has become one of the cycle’s closely watched battleground contests. Michigan also has several competitive House races and will elect a new governor for the first time in eight years.
Vance campaigned in Michigan with Rogers, gubernatorial nominee John James and Mike Bouchard Jr., the GOP nominee in the 10th Congressional District, at an Aug. 31 rally in Sterling Heights. Rep. Lisa McClain also appeared at the event.
The one-hour special, moderated by “CBS Evening News” anchor Tony Dokoupil, will be recorded earlier in the week. Vance and Dokoupil will discuss issues facing voters, including affordability, tariffs, immigration, health care, artificial intelligence, the war with Iran and the state of American democracy, according to CBS News.
The two were scheduled for a town hall interview in March, but the vice president postponed due to the war with Iran.
The vice president’s office did not immediately respond to a request for comment.
Congress
Top Commerce Committee Democrat releases AI framework
Sen. Maria Cantwell, the top Democrat on the Commerce Committee with vast jurisdiction over artificial intelligence policy, outlined six AI safety principles Wednesday morning — tenets she believes should underpin any legislation to stave off the greatest threats posed by the rapidly-evolving technology.
“To manage risks from advanced AI systems we need clear safety standards, continuous testing, and reporting of serious failures,” the Washington Democrat said in a statement. “America can lead the world in AI by building systems that are not only more capable, but safer and more secure.”
Cantwell’s framework would encompass six priority areas: enforceable safety standards for frontier models, continuous testing, disclosure and oversight, public-private partnerships, protection for children and workers and adherence to U.S.-led global standards.
To directly address risks posed by the technology, her framework would have federal experts at the National Institute of Standards and Technology and other agencies establish clear federal rules to address harms, with specialized standards for open-source AI models to reduce risks of catastrophic misuse.
The senator is also recommending that the federal government provide developers with guidance on how to accelerate U.S. leadership on AI without sacrificing basic safety protocols.
On testing, Cantwell argues the government and independent experts should provide constant oversight and “continually scrutinize and stress test covered AI models,” particularly when sensitive information or secure facilities are involved.
She also says AI systems must have built-in safeguards to ensure they halt self-modification that could bypass safety controls. And she states that advanced models should not be released until they have undergone an independent, comprehensive audit — similar to outside auditors examining a company’s financial statements.
Cantwell, a former tech executive, has for years pursued similar priorities. But her new framework comes ahead of a midterm election that could return control of the Senate to Democrats, handing Cantwell back of the Commerce Committee gavel.
It also comes as lawmakers are under pressure to regulate the AI industry but are showing few signs that they will be able to reach consensus, across the aisle or even within their own party.
Senators had hoped for hearings, markups and briefings on AI legislation before leaving Washington until after the November elections, but little progress was made. Sen. Ted Cruz (R-Texas), the current Commerce Committee chair, has continued to say he intends to hold a markup on AI-related bills but has punted multiple times, saying senators have yet to reach agreement on any bipartisan measure.
Senate Majority Leader John Thune and Sen. Amy Klobuchar (D-Minn.) have been trying to cut a deal on legislation to prevent and contain catastrophic risk from runaway AI technology, but bill text has so far failed to materialize.
Cantwell’s approach laid out Wednesday morning would be stricter and more comprehensive than what Thune and Klobuchar are expected to ultimately produce, based on similar legislation they have offered in the past.
Her approach of “constant oversight and vigilance” would also serve as a contrast to that of GOP leaders, who have consistently called for a “light touch” regulatory regime.
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