AI Provisions in the New Spending Bill: Key Highlights

Congress Enacts AI Provisions in Five-Bill Spending Package

On February 3, 2026, the House passed the Senate-approved fiscal year (FY) 2026 five-bill spending package (H.R. 7148) via a vote of 217-214, effectively sending the measure to the President and concluding the partial government shutdown.

This comprehensive package encompasses several key areas, including Defense, Labor-Health and Human Services (HHS)-Education, Financial Services, National Security-State, and Transportation-House and Urban Development (HUD), all featuring significant AI-focused provisions.

Summary of AI Provisions

Defense (Joint Explanatory Statement)

The agreement allocates an additional $40 million to Research, Development, Test and Evaluation for Defense-Wide within the International Innovation Initiatives and Defense Innovation Unit (DIU) budgets. This funding aims to enhance trilateral cooperation and mandates the Pentagon to report to Congress on various technological efforts related to undersea capabilities, quantum technologies, AI and autonomy, advanced cyber, and electronic warfare.

Additionally, the agreement encourages the Air Force Research Laboratory to utilize new Education Partnership Agreement (EPA) financial assistance mechanisms to address workforce development in crucial technology areas, including AI and autonomous systems.

Financial Services and General Government (Joint Explanatory Statement)

The agreement commends the Federal Communications Commission (FCC) for its ruling against AI-generated robocalls, expressing concerns about the detection of this technology. The FCC is instructed to brief Congress on illegal AI-generated robocalls within 60 days.

Moreover, the Treasury Department is directed to report on the integration of AI and machine learning (ML) in sanction and intelligence-gathering programs within 270 days, aiming to enhance these systems further.

In the realm of cybersecurity, the Small Business Administration (SBA) must provide a comprehensive list of all related projects undertaken in the previous fiscal year within 180 days.

National Security, Department of State, and Related Programs (Joint Explanatory Statement)

The agreement mandates the State Department to include assessments of the misuse of AI in human rights reporting, particularly concerning forced organ harvesting and monitoring of religious minorities.

Labor, HHS, Education and Related Agencies (Joint Explanatory Statement)

The Bureau of Labor Statistics (BLS) is encouraged to evaluate the economic impact of AI, focusing on job displacement and creation. Additionally, the agreement allocates $135 million to the National Institutes of Health (NIH) for leveraging AI and data science to accelerate biomedical innovation.

Health Care Extenders (Division J)

The bill calls for a technology assessment of wearable medical devices within 18 months, focusing on their capabilities in clinical decision-making and how AI can enhance these devices.

Conclusion

The ongoing monitoring of congressional and industry activity related to AI is essential as these provisions are implemented. The package represents a significant step in integrating AI into various sectors, highlighting the government’s commitment to leveraging technology for national advancement.

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