State of Play
The House and Senate are in Washington this week as the federal government remains partially shut down.
Driving the News
The Senate-passed funding package faces steep obstacles in the House, where Speaker Mike Johnson is struggling to secure enough GOP support amid opposition from hardliners and skepticism from Democrats.
Senate Minority Leader Chuck Schumer struck a deal with the White House late last week for a short-term Homeland Security stopgap, but House Minority Leader Hakeem Jeffries was not part of the agreement, leaving Democrats divided and Republicans potentially holding sole responsibility if the bill fails.
Three Things to Watch in Tech
Section 230 Under Fire: As Section 230 nears its 30th anniversary next week, there are renewed efforts to overhaul the liability protection shield.
This week, Senator Dick Durbin (D-IL) and former Rep. Dick Gephardt (D-MO), who served as House Democratic leader when Section 230 was enacted, are set to appear at a news conference with advocates to call for reforms to the law. The reforms in question are unknown.
There are legislative efforts too. Senators Lindsey Graham (R-SC) and Dick Durbin (D-IL) issued the Sunset Section 230 Act late last year to set a two-year expiration date on the law.
Senator Ron Wyden (D-OR), who is a long-time defender of Section 230, remains opposed to the Graham/Durbin bill, but is increasingly isolated, with former allies such as Senator Rand Paul (R-KY) arguing against the law amid rising frustrations with platform safety and new harms.
AI also plays heavily in the debate as new questions arise to how Section 230 is applied to generative AI systems, and if AI-generated content could or should receive the same protections as human-made content.
House Judiciary vs. Europe: The House Judiciary Committee is set to hold a hearing to examine whether digital regulations across Europe are constraining American free speech and innovation.
This will be part two of the Committee’s hearing series on European regulations including the EU’s Digital Services Act and the UK’s Online Safety Act, alongside broader EU rules that critics say disproportionately burden U.S. tech companies and have a chilling effect on innovation.
Scheduled witnesses include Lorcán Price of Alliance Defending Freedom International and Päivi Räsänen of the Finnish Parliament, however, the Committee is expected to add more prior to Wednesday.
The hearing is one of several efforts from Chairman Jim Jordan (R-OH) to reign in the EU’s presumed impact on U.S. free speech, including a bipartisan trip to Europe last August to meet with EU and UK officials on protecting American innovation and free speech.
What the New Fed Chair Means for Tech: President Trump’s nomination of Kevin Warsh to replace Jerome Powell as Federal Reserve Chair has rattled markets, including tech, crypto and AI, as a new Fed command could bring about significant changes.
On AI, Warsh previously argued that AI could be a powerful disinflationary force by boosting productivity and lowering costs. However, investors ultimately viewed Warsh as more hawkish on inflation rather than opting for a greater AI productivity push.
Crypto markets reacted sharply to Warsh’s nomination, with Bitcoin dropping seven percent over the weekend. Wash, however, has advocated for crypto in past remarks, highlighting Bitcoin’s growing strength as a currency.
Warsh is likely to support innovation-led productivity growth without reshaping monetary policy around speculative AI gains, signaling stability rather than aggressive easing for the sector.
You’re Invited: AI Integrators Council Demo Day
We are excited to invite you to the AI Integrators Council Demo Day on Wednesday, February 11 at 11:00 AM in the Rayburn Foyer. This event will showcase leading companies that are integrating AI across industries to drive innovation, efficiency, and security. Learn more about the AI Integrators Council here.
🏛️ Tech Hearings
The Senate Commerce, Science, and Technology Telecommunications and Media Subcommittee holds a hearing to “examine the front lines of connectivity, focusing on FirstNet's role in public safety” - Wednesday, January 28 at 10:00 AM EST
The Senate Armed Services Personnel Subcommittee holds a hearing to “examine the Department's cyber force generation plan and the implementation plan” - Wednesday, January 28 at 2:30 PM EST
The Senate Commerce, Science, and Technology Consumer Protection, Technology, and Data Privacy Subcommittee holds a hearing to “examine the live entertainment industry” - Wednesday, January 28 at 2:30 PM EST
The Senate Agriculture, Nutrition, and Forestry holds a hearing to “consider an original bill entitled, Digital Commodity Intermediaries Act” - Thursday, January 29 at 10:30 AM EST
🗓️ Upcoming Events
The Government Executive Media Group - Virtual Discussion on "Integrating and Securing Operational Technology" - Tuesday, February 3 at 3:00 PM EST
The American Enterprise Institute for Public Policy Research - Discussion on "Male Vice in an Internet Age” - Tuesday, February 3 at 5:15 PM EST
INCOMPAS - 2026 Policy Summit on "Unleashing Innovation: Building the Backbone for the Digital Age" - Wednesday, February 4 to Thursday February 5
The Brookings Institution Center for Technology Innovation - Discussion on "The Future of Communications Regulation" - Wednesday, February 4 at 1:00 PM EST
