Democrats are preparing a wave of AI and data center legislation for when they take control of Congress in January 2027. The planned bills would shield consumers from rising electricity costs tied to data centers, require independent testing of advanced AI systems, and clarify when AI companies can be held liable for harm. The party won both chambers in Tuesday's midterm elections.
Sen. Chuck Schumer of New York, expected to become majority leader, said Thursday in Washington that protecting consumers from higher energy costs linked to data center expansion would be a priority. That puts the power bill for AI infrastructure near the top of the Democratic agenda.
Rep. Lori Trahan of Massachusetts plans legislation that would have independent experts evaluate leading AI models against safety standards, along with a separate bill clarifying company liability, according to her deputy chief of staff, Francis Grubar. Trahan's measures draw on a package she previously introduced with Republican Rep. Jay Obernolte.
Key facts
- 01Democrats take control of both chambers of Congress in January 2027 and are preparing a slate of AI and data center bills.
- 02Sen. Chuck Schumer said protecting consumers from energy costs linked to data center expansion will be a priority.
- 03Rep. Lori Trahan plans bills requiring independent safety evaluations of leading AI models and clarifying company liability.
- 04Rep. Bill Foster released a discussion draft of the Real-Time Regulatory Study Act of 2026 on Nov. 5.
- 05Sen. Maria Cantwell released a six-part AI framework in October that includes enforceable safety standards for frontier models.
Other House Democrats are drafting their own proposals. Reps. Sara Jacobs of California and Don Beyer of Virginia are working on a framework with minimum safety standards and government power to shut down models that fail testing. The House Democratic Commission on AI expects to deliver a policy roadmap to Minority Leader Hakeem Jeffries by the end of the year, and Rep. Zoe Lofgren of California, who is seeking to chair the House Science Committee, said she wants responsible AI rules that still foster innovation.
In the Senate, Sen. Maria Cantwell of Washington, the likely next chair of the Commerce Committee, released a six-part AI framework in October. It includes enforceable safety standards for frontier models, continuous testing, and protections for children and workers. Abdul El-Sayed, who won Michigan's Senate seat on Tuesday, campaigned on creating an independent agency to oversee AI regulation.
Chip export controls are also on the list. Chris McGuire, a former tech and national security official in the Biden administration, expects export controls to be a key part of the Democratic AI agenda and named Sen. Elizabeth Warren of Massachusetts as a likely leader on the issue. Several tighter export rules are being considered for the fiscal 2027 National Defense Authorization Act, Commerce Department undersecretary Jeffrey Kessler may be called to testify, and Rep. Greg Casar of Texas said this week that AI executives should testify under oath.
“the early tremor of a much bigger AI earthquake upending American politics.”— Greg Casar, Chair of the Congressional Progressive Caucus
Not every proposal is about restricting AI. Rep. Bill Foster of Illinois released a discussion draft on Thursday of the Real-Time Regulatory Study Act of 2026, which would direct the Federal Reserve Board to work with other regulators to build, test and publicly release open-source software that gives supervisors real-time information on the health of banks. Foster said the goal is to keep pace with AI-driven financial risks while cutting reporting costs for community banks and credit unions. He is the top Democrat on the House Financial Institutions Subcommittee and is in line to chair it next year.
Any bill faces steep odds while Donald Trump is president, since he has repeatedly dismissed calls for mandatory AI rules. Ed Mills, who manages policy research at Raymond James, said Congress could override a veto with two-thirds of both chambers, and that Democrats could try to attach AI rules to must-pass annual bills.
“The probability of legislation is much higher than people anticipate”— Ed Mills, Policy research lead at Raymond James
Markets have already reacted. Technology shares sold off sharply on Thursday on fears that a new Congress will slow AI development and that AI capital spending will not earn sufficient returns.
The pressure on the labs started before the election. In October, Lofgren and other Democratic House committee leaders asked OpenAI, Anthropic, Meta, Google and SpaceX to detail their security practices and report instances of AI tools acting in unintended ways. A poll published the same month found most US voters think the Trump administration and Congress are not taking AI risks seriously enough.
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