Sectoral AI Governance Act of 2026
Sponsored By: Representative Jacobs, Sara [D-CA-51]
Introduced
Summary
This bill would give federal agencies the authority to regulate algorithmic decision‑making systems that are likely to materially contribute to violations of the federal laws they enforce. It pairs that power with rules for public notice, technical consultation, coordination, and ongoing review.
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- Agencies would be able to write enforceable rules covering ADS that materially contribute to legal violations. Violations of those rules would be treated as violations of the underlying federal law for administrative and civil enforcement.
- Agencies must consider and, where practicable, mitigate harms to government services and public benefits when ADS are used in government administration, including when contractors use those systems.
- Rulemaking would require a mandatory advanced notice of proposed rulemaking at least 60 days before a proposed rule unless prior records suffice, and agencies must consult with the Office of Information and Regulatory Affairs and seek technical input from the Office of Science and Technology Policy and NIST. The Office of Management and Budget would issue cross‑agency guidance, agencies must review rules at least every 5 years starting no earlier than 3 years after promulgation, and agencies must submit biennial reports detailing ADS identified, enforcement actions, staffing needs, and assessments of disparate impacts.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 0 costs, 4 mixed.
Agencies could regulate automated systems
If enacted, agency heads that enforce federal laws would be able to make rules about algorithmic decision-making systems (ADS). Agencies could act when they find, based on evidence, that an ADS is likely to materially contribute to law violations. The bill defines ADS and excludes passive tasks like web hosting and data storage. Violating an ADS rule would be treated as violating the underlying federal law, allowing the agency to seek penalties or injunctions.
Biennial reports on automated systems
If enacted, agencies that made ADS rules would have to publicly report to Congress, OMB, and OSTP every two years. The first reports would be due not later than two years after enactment. Reports must list ADS uses found likely to contribute to violations, staffing and resource needs, enforcement summaries and penalty ranges, and any disparate impact assessments. Agencies that identified risky ADS uses but did not make rules must explain the reasons and evidence they relied on.
New advance notice and coordination
If enacted, agencies would generally have to publish an advance notice of proposed rulemaking at least 60 days before a formal proposal. The ANPR must describe the ADS or category, the law involved, and the evidence and comments sought, unless a prior record already suffices. Agencies would be required to consult with OIRA and to include summaries of technical consultations with OSTP and NIST. OMB (through OIRA), in consultation with OSTP, would issue guidance to resolve conflicts and promote consistent rules.
Regular review of ADS rules
If enacted, agencies would have to review any ADS rule within 3 years of issuing it and then at least once every 5 years. Agencies must repeal or change rules found to be inappropriate or not properly tailored to preventing violations. The bill would also say that violating an ADS rule counts as violating the underlying federal law for administrative and civil enforcement. That treatment can increase penalties or remedies available to agencies.
States can still regulate automated systems
If enacted, nothing in this Act would stop a State from regulating algorithmic decision systems unless a State rule conflicts with this Act or a federal rule under it. States would therefore remain free to add protections or limits on ADS. That could create different rules across States. Federal rules under the Act would take priority where they conflict with State rules.
Sponsors & CoSponsors
Sponsor
Jacobs, Sara [D-CA-51]
CA • D
Cosponsors
Rep. Foushee, Valerie P. [D-NC-4]
NC • D
Sponsored 6/4/2026
Rep. Lieu, Ted [D-CA-36]
CA • D
Sponsored 6/25/2026
Rep. Walkinshaw, James R. [D-VA-11]
VA • D
Sponsored 7/21/2026
Roll Call Votes
No roll call votes available for this bill.
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