Senator Ted Cruz (R-Texas), chairman of the Senate Commerce Subcommittee on Science, Manufacturing, and Competitiveness, presented a new legislative framework and the SANDBOX Act at a hearing titled “AI’ve Got a Plan: America’s AI Action Plan.” The hearing addressed how federal policy should respond to advances in artificial intelligence.
In his prepared statement, Cruz highlighted the importance of American leadership in AI. He said, “Thank you, Chairman Budd, for holding this hearing today. It could not come at a more critical moment.
“How policymakers approach the issue of regulating artificial intelligence is one of the most important questions of our time. AI is transformative. It has the potential to raise Americans’ standard of living, simplify tasks and end mindless paperwork, empower the disabled to live more independently, while also enhancing existing businesses and creating new ones. Like the Internet, AI can extend the reach of American values around the world.
“But make no mistake, America is in an AI race against China. Thankfully, the President understands that this race is existential to the future of the American economy and, frankly, our values.
“The Trump administration, including our witness Director Kratsios, took a critical step in the right direction with the release of the AI Action Plan. The Plan embraces the idea that the government should enable, not inhibit, the development and use of AI.
“But the Administration cannot do this alone.
“Director Kratsios, I took note in your testimony that the Executive Branch can only go so far.
“Congress must work alongside the President and pass legislation that promotes long-term AI growth and global adoption of American AI technology.
“To that end, this morning I am releasing a legislative framework for AI. This framework addresses five critical areas:
- To unleash American innovation and long-term growth, we must streamline permitting for AI infrastructure and empower entrepreneurial freedom.
- Protect free speech in the age of AI, particularly countering attempts by foreign governments to censor Americans and control public discourse.
- Prevent a patchwork of burdensome AI regulation, including often-conflicting state AI regulations.
- Stop nefarious uses of AI against Americans, like fraud and scams enabled by AI, particularly when targeting senior citizens.
- Defend human value and dignity, including reinvigorating bioethical considerations in federal policy and opposing threats to human dignity and flourishing.
“As part of this framework, today I’ll introduce the SANDBOX Act, a bill that fine-tunes federal regulation for AI use.
“A regulatory sandbox—a policy mechanism recommended by the AI Action Plan—will give entrepreneurs room to breathe, build, and compete within a defined space bounded by guardrails for safety and accountability.
“Under the SANDBOX Act, an AI user or developer can identify obstructive regulations and request a waiver or modification which the government may grant for two years via a written agreement that must include a participant’s responsibility to mitigate health or consumer risks.
“To be clear,” Cruz continued, “a ‘regulatory sandbox’ is NOT a free pass. People creating or using AI still have to follow the same laws as everyone else. Our laws are adapting to this new technology, and judges are regularly applying existing consumer protection, contract, negligence, and copyright laws to cases involving AI. Conduct that is illegal without AI will remain illegal with AI.”
He added, “The SANDBOX Act embodies the correct approach to AI policy, one that harnesses the power of American ingenuity and entrepreneurial freedom and sets us on a course to beating China in the AI race.”
Cruz concluded his remarks with, “The governance and applications of AI across the world will reflect the nation that leads in its development. If the United States fails to lead, those values will not be American values but the values of regimes that use AI to control rather than to liberate. If China wins the AI race, the world risks an order built on surveillance and coercion. Like President Trump, I believe the nation that leads the AI revolution must be—and will be—the United States.”
The proposed SANDBOX Act aims to let developers seek waivers from certain outdated federal rules that might slow down or complicate new uses for artificial intelligence technologies. The plan would allow such waivers or modifications for up to two years if applicants agree to manage health or consumer risks during their projects.
