New Era of AI Regulation: Key Highlights from the TRUMP America AI Act

TRUMP America AI Act Bill Sets Direction for Future US AI Regulation

On March 18, 2026, Senator Marsha Blackburn (R-TN) introduced the TRUMP AMERICA AI Act, formally known as the Republic Unifying Meritocratic Performance Advancing Machine Intelligence by Eliminating Regulatory Interstate Chaos Across American Industry Act. This extensive, 291-page bill aims to establish the first comprehensive federal framework for artificial intelligence regulation in the United States.

The bill addresses a range of critical issues including AI innovation, protection of minors, AI risk and liability, intellectual property, and content regulation.

Key Provisions Overview

The following are some of the pivotal provisions outlined in the bill:

  • Federal products liability framework for AI systems with a private right of action.
  • Annual third-party bias audit requirement for AI products.
  • Federal right of publicity with no fair use protection for unauthorized reproduction used in AI training or inference.
  • Protection of minors from online platforms and AI chatbots.
  • Termination of platform protection under Section 230 of the CDA.

Preemption and Liability

Contrary to expectations under the AI Executive Order, the law does not preempt generally applicable law, such as common law or laws addressing artificial intelligence.

AI Systems Liability

The bill establishes a federal products liability framework for AI systems, allowing developers to be held liable for:

  • Harm caused by defective design.
  • Failure to warn.
  • Express warranty issues.
  • Unreasonably dangerous products.

Additionally, the bill prohibits unconscionable liability limitations in AI product contracts.

Third-Party Audits

Providers of high-risk AI systems must conduct an annual independent third-party audit to check for viewpoint discrimination or discrimination based on political affiliation. All entities must also provide annual ethics training to personnel using an FTC-established curriculum.

Chatbot Developer Responsibilities

The bill imposes a duty on chatbot developers to exercise reasonable care in the design and operation of chatbots to mitigate foreseeable harms to users. The FTC is instructed to create rules for minimum safeguards.

Intellectual Property Protection

The bill introduces a federal right of publicity that protects individuals’ voice and visual likenesses from unauthorized digital replicas, even post-mortem. It specifies that unauthorized reproduction of copyrighted works for AI training does not constitute fair use.

Furthermore, it directs NIST to develop voluntary standards for content provenance, watermarking, and synthetic content detection.

Content Moderation Changes

Section 230 of the Communications Decency Act is repealed, eliminating the liability shield for online platforms regarding third-party content.

Federal agencies must procure only large language models that comply with “Unbiased AI Principles.” The Director of OMB must issue guidance within 120 days of enactment.

Protection for Children and Teens

The bill imposes a Kids Online Safety Act (KOSA) that requires platforms to prevent and mitigate foreseeable harms to minors. This section preempts conflicting state laws but allows states to enact stricter regulations.

The Guard Act sets criminal and civil obligations to protect minors from AI chatbots and mandates age verification.

Encouraging Innovation

Lastly, the bill includes sections aimed at promoting AI research and protecting data centers, fostering AI innovation through the Center for AI Standards and Innovation (CAISI) at NIST.

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