State of Play
The House and Senate are back in session this week.
The Senate is working to pass its $72 billion reconciliation package this week to fund ICE and Customs and Border Protection prior to the Memorial Day recess, but the bill’s prospects face an uphill battle.
Driving the News
President Trump’s $1 billion ballroom funding request is throwing another wrench in the Senate’s reconciliation plans. The funding is facing resistance from both vulnerable Republicans and Senate Democrats, while the Senate parliamentarian has already ruled the provision violates the non-germaine Byrd Rule, setting up a renewed procedural fight and a contentious vote-a-rama this week.
Meanwhile, Speaker Mike Johnson (R-LA) is trying to settle disputes over FISA reauthorization, housing legislation, and Trump’s push to attach the SAVE America Act to major GOP priorities.
Three Things to Watch in Tech
Senate Armed Services Eyes Defense Tech: The Senate Armed Services Emerging Threats and Capabilities Subcommittee will hear from several defense officials Tuesday on the DOD’s science and technology priorities.
The hearing is expected to focus on the DOD’s rapid adoption of AI-enabled warfighting systems, autonomous drones, and advanced command-and-control technologies to maintain US competitiveness against China.
Witnesses, including Emil Michael, Under Secretary of Defense for Research and Engineering, will likely bring the case for restructuring its innovation ecosystem and expanded investment in defense technology transition program, research commercialization, and industrial base protection.
While the hearing is perfunctory for NDAA efforts, it reflects a broader push towards defense technology, and the need for more streamlined adoption of military innovation and technology.
Congress Eyes Cyber, AI Threats in Wake of Mythos: Lawmakers are intensifying efforts to shape federal AI security policy as concerns grow that adversaries are rapidly narrowing the gap with the U.S. on advanced frontier AI systems, and the expanding cyber threat landscape that is accompanying the innovation.
Sen. Jim Banks warned Administration officials that powerful AI models like Anthropic’s Claude Mythos could pose major national security risks if adversaries gain access, while other Members, led by Rep. Bob Latta (R-OH), are urging the White House for better federal coordination, classified testing, and international cooperation to address frontier AI risks and vulnerability disclosures.
The letters come in the wake of some confusion from the Administration on their plans to regulate frontier models, with some officials suggesting they will take a more voluntary approach while others are pushing for “FDA-style” regulations.
House Financial Services Examines Bank/Fintech Partnerships: The House Financial Services Digital Assets, Fintech, and AI Subcommittee is set to hear from fintech companies, banks, and stakeholders on how bank-fintech partnerships function in practice, focusing on their benefits for consumers and financial markets, as well as the compliance, regulatory, and risk management challenges associated with these arrangements.
Members will also review H.R. 6552, the Bank-Fintech Partnership Enhancement Act, which would require federal banking regulators to study the impact of these partnerships on competition, innovation, consumer protection, and potential updates to banking laws that could better support responsible collaboration.
The hearing comes in the wake of Senate Banking’s passage of the CLARITY Act, establishing a digital assets regulatory framework. Members will likely discuss the role of fintech’s in the realm of digital assets, AI, and other financial innovation.
🏛️ Tech Hearings
The House Veterans’ Affairs Technology Modernization Subcommittee holds a hearing on “PACT Act Implementation: Modernizing VA Disability Claims Through Effective Technology” - Monday, May 18 at 3:00 PM EST
The House Select Committee on the Strategic Competition between the US and the CCP holds a hearing on “Crime, Corruption, and Power: The Rise of CCP-linked Scam Networks Targeting Americans And Threatening U.S. Security” - Tuesday, May 19 at 10:00 AM EST
The Senate Armed Services Emerging Threats and Capabilities Subcommittee holds a hearing to examine the science and technology priorities in review of the Defense Authorization Request for Fiscal Year 2027 and the Future Years Defense Program - Tuesday, May 19
The House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on “Partnering for Innovation: How Bank-Fintech Collaborations Enhance Financial Infrastructure” - Wednesday, May 20 at 10:00 AM EST
The Senate Commerce Consumer Protection, Technology, and Data Privacy Subcommittee hotels a hearing to examine betting, focusing on protecting sports integrity in America - Wednesday, May 20
The House Homeland Cybersecurity and Infrastructure Protection Subcommittee holds a hearing on “State and Local Cybersecurity: Escalating Threats, Federal Partnership, and the Resilience of America’s Communities” - Thursday, May 21 at 2:00 PM EST
The House Science Environment Subcommittee holds a hearing on “Research-Driven Resilience: Applying Science to Secure U.S. Water Systems from Cyber Threats” - Thursday, May 21 at 2:00 PM EST
🗓️ Upcoming Events
New America - Virtual Discussion on “The AI Agenda: Exploring the Trump Administration’s Approach to AI Literacy and Use” - Tuesday, May 19 at 12:00 PM EST
The American Bar Association - Virtual 2026 AI and the Practice of Law Summit - Tuesday, May 19
Semafor - Banking On the Future Forum - Wednesday, May 20 at 9:00 AM EST
The Federal Communications Commission - Open Meeting - Wednesday, May 20 at 10:30 AM EST
Politics and Prose Bookstore - Book Discussion on "AI for Good: How Real People Are Using Artificial Intelligence to Fix Things That Matter" - Wednesday, May 20 at 7:00 PM EST
Cribl - CriblConnect Summit – Thursday, May 21
