U.S. House · 2026-06-04 · major
Obernolte and Trahan Unveil the Great American Artificial Intelligence Act — 269-Page Bipartisan Discussion Draft Would Preempt State AI Model-Development Laws for Three Years, Force $500M+ Labs Into Semi-Annual Third-Party Audits, and Impose $1M/Day Fines With CAISI as the Standards Hub
Reps. Obernolte (R) and Trahan (D), with four bipartisan co-sponsors, drop a 269-page draft federal AI framework. It preempts state model-development laws for three years, mandates safety frameworks and semi-annual audits for $500M+ labs, and carries $1M/day penalties.
Bipartisan 269-page draft would preempt state AI laws for three years and force the biggest labs into mandatory federal safety audits.
Key specs
| Draft pages | 269 |
|---|---|
| Preemption years | 3 |
| Revenue threshold | $500M |
| Incident window | 15 days |
| Imminent risk window | 24 hours |
| Max daily fine | $1M |
| Co sponsors | 6 |
What is it?
The Great American Artificial Intelligence Act is a discussion-draft bill released by Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA) on June 4, 2026, with co-sponsors Suhas Subramanyam (D), Scott Franklin (R), Scott Peters (D), and Erin Houchin (R). The 269-page text is Congress's most substantive attempt yet at a federal framework specifically governing frontier-model development.
How does it work?
Developers above $500M in annual revenue would publish safety frameworks addressing catastrophic risks, report critical safety incidents within 15 days and imminent risks within 24 hours, and submit to semi-annual audits by NIST-licensed Independent Verification Organizations. Non-compliance carries fines up to $1M per day. The bill codifies the Commerce Department's Center for AI Standards and Innovation (CAISI), preempts state AI model-development laws for three years while preserving state rules on AI use and deployment, and extends the 2015 Cybersecurity Information Sharing Act through fiscal 2035.
Why does it matter?
It arrives two days after President Trump's voluntary pre-release-sharing executive order and sets up a direct fight with Colorado's AI Act (live June 30, 2026), Illinois SB 315, and California's safety bills. AFL-CIO and the Alliance for Secure AI publicly opposed the preemption clause within hours of the release, signaling that the labor and AI-safety coalitions will lobby against the federal-floor model.
Who is it for?
frontier-lab policy and compliance teams, US AI startups, state AI regulators
Try it
Read the discussion-draft PDF on Rep. Obernolte's site and email feedback to the sponsors.