WEEK OF DECEMBER 2, 2024

Dodge, Duck, Dip, Dive, and DOGE

State of Play: 

  • Members return to Washington for the last three weeks of session before adjourning the 118th Congress.

  • President-elect Trump has quickly announced most of his Cabinet, and we expect to see more senior staff announcements this week.

Driving the News: 

  • Government funding expires on December 20, and Congress is expected to pass a stopgap measure into the new year. 

  • Congress must also pass the FY25 National Defense Authorization Act (NDAA), which is expected to be the vehicle for a select few AI provisions. More on that below.

Three Things to Watch in Tech 

1. Commerce Department’s Export Controls, CHIPS Latest: The Department of Commerce today announced a new set of stringent export controls on semiconductor technology used in AI and emerging technologies. 

  • The new controls include an additional 140 entities to Commerce’s Bureau of Industry and Security (BIS) Entity List. U.S. companies are prohibited from working with entities included on the entity list without special licensing. 

  • The controls are largely an effort to combat China’s ability to produce advanced technologies, as they target over 24 different types of chip equipment. 

  • Commerce has been active in its work on distributing CHIPS funding for domestic semiconductor manufacturing, particularly as the year wraps up. Secretary Raimondo has said that they have a “clear deadline” for distributing its nearly $50 billion in chips funding programs. 

2. What AI Bills Could be Included in NDAA: The FY25 National Defense Authorization Act (NDAA) tops Congress’ to-do list before the end of the year, and some Members are working to include a small package of AI legislation primarily pertaining to military use and implications of AI. It is looking more unlikely, however, that bills that had been in the fold, such as the Future of AI Innovation Act or the CREATE AI Act, will be included in the final NDAA. 

  • Despite legislative inaction, Congress continues to focus on AI, including a  House Financial Services Committee hearing Wednesday. 

3. DOGE Caucus Takes Shape: The Senate Department of Government Efficiency (DOGE) Caucus will convene for its inaugural meeting this Thursday with Elon Musk and Vivek Ramaswamy in attendance. Senator Joni Ernst (R-IA) announced the caucus in late November and has committed to working with Musk and Ramaswamy to reduce over $2 trillion in government spending. 

  • The House Oversight Committee also announced it will create a DOGE Subcommittee to be chaired by Rep. Marjorie Taylor Greene (R-GA). 

  • In addition to the common refrain of identifying waste, fraud, and abuse in order to cut government spending, a DOGE caucus and subcommittee will provide opportunities to highlight how the government can utilize tech systems to improve government efficiency.

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