Advanced Artificial Intelligence Innovation and Security Act of 2026

SECTION 1. SHORT TITLE. This Act may be cited as the 'Advanced Artificial Intelligence Innovation and Security Act of 2026'. SEC. 2. FINDINGS. Congress finds that advanced artificial intelligence systems present significant opportunities for economic growth, national security, and public benefit, as well as risks that require coordinated federal oversight. The development and deployment of such systems affect interstate and foreign commerce, national defense, and the privacy and civil liberties of individuals. SEC. 3. DEFINITIONS. In this Act: (1) 'Advanced artificial intelligence' means any AI system that meets performance thresholds established by the National Institute of Standards and Technology (NIST) in consultation with the Director of National Intelligence. (2) 'Covered entity' means any person or organization that develops, deploys, or operates an advanced AI system in the United States or that affects interstate commerce. SEC. 4. FEDERAL COORDINATION AND STANDARDS. (a) The Secretary of Commerce, in consultation with the Secretary of Defense, the Director of National Intelligence, and the Director of the Office of Science and Technology Policy, shall issue voluntary consensus standards for the safe and secure development and deployment of advanced AI systems. (b) The Secretary of Commerce shall establish a Federal Advisory Committee on AI Innovation and Security, composed of representatives from industry, academia, civil liberties organizations, and state governments, to advise on standards and best practices. SEC. 5. FUNDING FOR AI RESEARCH AND DEVELOPMENT. (a) There is authorized to be appropriated $500,000,000 for fiscal year 2027 to the National Science Foundation for basic and applied research on advanced AI, including research on safety, security, and ethical implications. (b) There is authorized to be appropriated $200,000,000 for fiscal year 2027 to the Department of Energy for high-performance computing resources for AI research. SEC. 6. REPORTING AND OVERSIGHT. (a) Covered entities that develop or deploy advanced AI systems shall submit an annual report to the Secretary of Commerce describing the system's capabilities, safety testing results, and any incidents of harm or security breaches. (b) The Secretary of Commerce shall submit an annual report to Congress summarizing the state of AI innovation and security, including recommendations for legislative action. SEC. 7. ENFORCEMENT. (a) The Federal Trade Commission shall have authority to enforce compliance with the reporting requirements of section 6(a) as an unfair or deceptive act or practice under section 5 of the Federal Trade Commission Act. (b) Any person who knowingly fails to comply with section 6(a) shall be subject to a civil penalty of not more than $50,000 per violation, adjusted for inflation. SEC. 8. PREEMPTION. Nothing in this Act shall preempt state laws that provide greater protections for privacy, civil rights, or safety. SEC. 9. SUNSET. This Act shall expire on December 31, 2031, unless reauthorized by Congress. SEC. 10. JUDICIAL REVIEW. Any person aggrieved by an action taken under this Act may seek judicial review in the United States district court for the district in which the person resides or has its principal place of business.