There is no vote on “comprehensive AI legislation” expected in Congress in the near future, and there is division on how to regulate it. Meanwhile, the White House will vote on Tuesday on the bipartisan Ratepayer Protection Act, which aims to block a nearby resident from being stuck with bills for any rise in electricity or water prices due to data center development.
A Cross-Party Push to Reduce Data Center cost
White House GOP leaders have set a Tuesday for a vote on the Ratepayer Protection Act that would mandate state utility regulators include provisions that data centers would have to pay for the full, incremental cost of upgrades to the grid necessary to accommodate them. In July, the White House Energy and Commerce Committee approved the bill 52-0, which currently has 41 cosponsors—way more than is typical for a bipartisan bill.
Meanwhile, on the larger, policy level, the momentum has stalled with AI. Speaker Mike Johnson has warned of “irrational or haphazard” moves to maintain the U.S. lead over China while striving for the ‘right balance. White House Minority Leader Hakeem Jeffries, on the other hand, has urged decisive congressional action immediately, mirroring some of the warnings of the AI industry leaders.
When AI Meets the Power Grid: Who Pays?
For homes that are close to data centers, the impact is real: several studies have been conducted that have demonstrated the relationship between the growth of a data center and increased electricity and water costs for nearby residents. The Ratepayer Protection Act is designed to have those costs borne by the tech companies that are building and operating those facilities, which is in line with the public stance of President Donald Trump on data centers that says communities should not pay for the costs.
In the meantime, demands for federal guardrails for AI have grown louder. Recently, Anthropic CEO Dario Amodei called for independent audits of the most advanced “frontier” models and a slower pace of development to minimise the likelihood of significant failures. Trump has vigorously resisted, even describing AI doomsday predictions as a “hoax” on his social media platform, Truth Social, and suggesting the push for regulation may be a reaction by actors trying to harm the United States.
Key Details
- Ratepayer Protection Act: Would strongly encourage state utility boards to adopt rules so data centers recover the full, incremental cost of energy grid upgrades, shielding local ratepayers from bill spikes.
- Bipartisan backing: The bill cleared the Energy and Commerce Committee 52–0 and has 41 House cosponsors; leaders expect it to pass “under suspension,” a fast-track process.
- AI regulation deadlock: Top House leaders are resisting swift action on AI safety laws, including proposals like a “kill switch” that would let the federal government shut down out-of-control AI systems.
- Political rhetoric: Trump has dismissed industry warnings as a “scam” and argued that strict rules could bankrupt U.S. companies relative to China. Vice President JD Vance has described calls to “slow the pace” as a potential “Trojan horse.”
What’s Next for Congress and AI?
The White House vote on the Ratepayer Protection Act is expected on Tuesday, but the bill’s path in the Senate remains uncertain, with senators already signaling caution about its prospects. On AI regulation, more briefings between lawmakers and major AI companies are expected in the coming days as Congress tries to close the knowledge gap before drafting any binding rules.