{"id":32690,"date":"2025-07-02T13:36:09","date_gmt":"2025-07-02T13:36:09","guid":{"rendered":"https:\/\/www.europesays.com\/us\/32690\/"},"modified":"2025-07-02T13:36:09","modified_gmt":"2025-07-02T13:36:09","slug":"what-the-big-beautiful-bill-means-for-ai","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/32690\/","title":{"rendered":"What the big, beautiful bill means for AI"},"content":{"rendered":"<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">To hear many smart AI observers tell it, the day of Wednesday, June 25, 2025, represented the moment when Congress started to take the possibility of advanced AI seriously.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">The occasion was a <a href=\"https:\/\/docs.house.gov\/Committee\/Calendar\/ByEvent.aspx?EventID=118428\" target=\"_blank\" rel=\"noopener\">hearing of Congress\u2019s \u201cwe\u2019re worried about China\u201d committee<\/a> (or, more formally, the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party) focused on the US-China AI competition. Members of both parties used the event to express concern that was <a href=\"https:\/\/www.transformernews.ai\/p\/congress-ccp-agi-hearing\" target=\"_blank\" rel=\"noopener\">surprisingly strident and detailed<\/a> about the near-term risks posed by artificial general intelligence (AGI) or even artificial superintelligence (ASI).<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1 _1lbxzst7\">Sign up <a href=\"https:\/\/www.vox.com\/pages\/future-perfect-newsletter-signup\" target=\"_blank\" rel=\"noopener\">here<\/a> to explore the big, complicated problems the world faces and the most efficient ways to solve them. Sent twice a week.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">Rep. Jill Tokuda (D-HI) expressed fear of \u201closs of control by any nation-state\u201d that \u201ccould give rise to an independent AGI or ASI actor\u201d threatening all nations. Rep. Nathaniel Moran (R-TX) <a href=\"https:\/\/x.com\/RepNateMoran\/status\/1937901999900483631\">predicted<\/a>, \u201cAI systems will soon have the capability to conduct their own research and development,\u201d and asked about the risks that might pose. Rep. Dusty Johnson (R-SD) declared, \u201cAnybody who doesn\u2019t feel urgency around this issue is not paying attention.\u201d<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\"><a href=\"https:\/\/www.transformernews.ai\/p\/congress-ccp-agi-hearing\" target=\"_blank\" rel=\"noopener\">Shakeel Hashim of Transformer<\/a>, one of the best reporters working on AI today, summarized the hearing this way: \u201cWashington seems to finally be waking up to the potential arrival of AGI \u2014 and the many risks that could accompany it.\u201d Peter Wildeford of the Institute for AI Policy and Strategy headlined his post on the hearing, \u201d<a href=\"https:\/\/peterwildeford.substack.com\/p\/congress-has-started-taking-agi-more\" target=\"_blank\" rel=\"noopener\">Congress Has Started Taking AGI More Seriously<\/a>.\u201d<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">Yet even as that hearing was unfolding, the Senate was frantically putting the finishing touches on the <a href=\"https:\/\/www.vox.com\/trump-administration\/415825\/trump-big-beautiful-bill-congress-deficit-tax-cuts\" target=\"_blank\" rel=\"noopener\">One Big Beautiful Bill<\/a>, the gargantuan deficit-exploding legislation to cut taxes, boost military and border spending, and cut to the bone various social programs. As part of their effort, culminating in Senate passage on Tuesday, Republican senators managed to <a href=\"https:\/\/www.washingtonpost.com\/business\/2025\/06\/29\/trump-tax-medicaid-snap\/\" target=\"_blank\" rel=\"noopener\">worsen some of the safety net cuts<\/a> in the House version of the bill and tried (unsuccessfully, thank goodness) to add a <a href=\"https:\/\/www.politico.com\/live-updates\/2025\/06\/28\/congress\/new-tax-on-solar-wind-power-00431388?utm_source=substack&amp;utm_medium=email\" target=\"_blank\" rel=\"noopener\">new tax on clean energy<\/a> that could make building the energy-hungry data centers AI requires substantially more expensive.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">The negotiations were a reminder that, even as some parts of Congress have finally started to appear to take AI seriously, others are on autopilot and taking a series of actions that will make the US less competitive on, and less prepared for, the future of AI.<\/p>\n<p>Recapping the beautiful bill<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">As I <a href=\"https:\/\/www.vox.com\/future-perfect\/416339\/ai-openai-automation-big-beautiful-reconciliation-trump\" target=\"_blank\" rel=\"noopener\">wrote a month ago<\/a>, the One Big Beautiful Bill, in general, is not the work of policymakers who take the possibility of powerful AI seriously.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">The House-passed provision stripping broadband funding from states that regulate AI suggested its authors do not think AI will be a sufficiently important technology that will need to be regulated the way telephones, electrical transmission, the internet, and other major technological breakthroughs have always been by state and local governments. Luckily, the <a href=\"https:\/\/www.axios.com\/pro\/tech-policy\/2025\/07\/01\/senate-strips-ai-moratorium\" target=\"_blank\" rel=\"noopener\">Senate voted to strip this provision<\/a> from its version of the bill on Monday night, but that hardly means the rest of the bill is harmless.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">The bill\u2019s cuts to, and imposition of new work requirements upon, safety net programs, such as Medicaid and SNAP (aka food stamps), suggest the authors do not take the risk of automation-caused job loss at all seriously. If huge numbers of Americans are <a href=\"https:\/\/www.vox.com\/future-perfect\/403708\/artificial-intelligence-robots-jobs-employment-remote-workers\" target=\"_blank\" rel=\"noopener\">about to be displaced from their jobs<\/a> due to technological advancements, the last thing we ought to do is condition more support programs on work. Yet that is exactly what the bill does, and the Senate version is in many ways worse than the House one.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">While the Medicaid work requirements in the House bill only apply to adults without children, the <a href=\"https:\/\/www.nytimes.com\/interactive\/2025\/06\/27\/us\/politics\/house-senate-bill-trump-agenda-comparison.html\" target=\"_blank\" rel=\"noopener\">Senate bill extends them to parents with children 14 and over<\/a>. It cuts Medicaid funding to states by changes to policies called \u201cprovider taxes.\u201d Its food stamp work requirements are slightly less stringent than the House\u2019s, but both bills <a href=\"https:\/\/www.cbpp.org\/research\/food-assistance\/by-the-numbers-senate-republican-leaderships-reconciliation-bill-takes\" target=\"_blank\" rel=\"noopener\">open the door to states opting out of the food stamps program entirely<\/a> if they so choose.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">How does this connect to a future with far more powerful AI?<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">Imagine you lose your job as an Uber driver because of the <a href=\"https:\/\/www.vox.com\/future-perfect\/411522\/self-driving-car-artificial-intelligence-autonomous-vehicle-safety-waymo-google\" target=\"_blank\" rel=\"noopener\">increased popularity of Waymo<\/a> and other self-driving services. You suddenly have no income. If, like most Americans, you live in a state that expanded Medicaid as part of Obamacare, you will be eligible for free health coverage as well as food stamps to help with grocery costs while you get back on your feet. <\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">But this bill changes that. Your state might not offer you food stamps at all, and if it does, both them and your health coverage could lapse if you don\u2019t swiftly get a new job, which will be that much harder in a world where AI <a href=\"https:\/\/www.axios.com\/2025\/05\/28\/ai-jobs-white-collar-unemployment-anthropic\" target=\"_blank\" rel=\"noopener\">eats up more and more labor<\/a>. <\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">This is not what a smart policy for people displaced by advances in AI looks like.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">But perhaps the most important AI-related changes to the Senate bill are found on the energy side. <\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">The House bill\u2019s cuts to sources like nuclear and geothermal, which can produce the constant stream of power needed for fueling data centers and AI model training, were so severe that <a href=\"https:\/\/www.eenews.net\/articles\/wright-backs-long-term-tax-credits-for-nuclear-geothermal\/\" target=\"_blank\" rel=\"noopener\">even Energy Secretary Chris Wright asked for them to be tapered back<\/a>.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">The Senate version indeed <a href=\"https:\/\/www.nytimes.com\/interactive\/2025\/06\/27\/us\/politics\/house-senate-bill-trump-agenda-comparison.html\" target=\"_blank\" rel=\"noopener\">tapered those back a bit<\/a> by allowing credits for projects that start construction before 2034, a few years later than the House deadlines. But it makes up for that by repealing wind and solar credits faster. In the House bill, wind and solar companies had to be operational by the end of 2028; in the Senate version, by the end of 2027.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">In its initial form, the Senate bill would have taken another hatchet to wind and solar by <a href=\"https:\/\/www.nytimes.com\/2025\/06\/29\/climate\/gop-bill-adds-surprise-tax-that-could-cripple-wind-and-solar-power.html\" target=\"_blank\" rel=\"noopener\">actively taxing them<\/a>, proposing a provision to tax wind and solar farms coming online after 2027 if they use components from China. The thing is that essentially every wind and solar farm uses components from China, <a href=\"https:\/\/www.vox.com\/climate\/415038\/critical-minerals-supply-chain-lithium-innovation\" target=\"_blank\" rel=\"noopener\">given how dominant<\/a> that country is in supply chains for these sources, and that will not change any time soon.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">The energy tax was struck from the final version of the Senate bill. But its repeal of wind and solar credits remains a threat to AI as an industry.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">For one thing, the bill makes everyone\u2019s electricity, including that for AI training, more expensive. The Rhodium Group modeled an earlier, less severe version of the bill and found it would increase energy costs for industry by <a href=\"https:\/\/rhg.com\/research\/the-stakes-for-energy-costs-in-budget-reconciliation\/#:~:text=4%2D6%%20more%20per%20year%20for%20energy\" target=\"_blank\" rel=\"noopener\">4 percent to 6 percent annually<\/a>. Most of this comes in the form of increased spending on fossil fuels. Because the economic case for new wind and solar production is so much worse, natural gas and coal will have to be a bigger part of the energy mix, and because they can <a href=\"https:\/\/www.vox.com\/climate\/377072\/data-energy-trends-renewables-transition-escape-velocity\" target=\"_blank\" rel=\"noopener\">be more expensive than renewables<\/a>, that pushes up costs.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">Wind and solar are intermittent sources (it\u2019s not always windy, it\u2019s not always sunny), which is not ideal for projects that need constant power, such as data centers. But <a href=\"https:\/\/www.vox.com\/climate\/408381\/energy-transition-renewables-grid-scale-energy-storage-giant-batteries\" target=\"_blank\" rel=\"noopener\">with the addition of batteries, wind and solar can provide more constant wattage<\/a>, and sure enough, <a href=\"https:\/\/www.canarymedia.com\/articles\/clean-energy\/google-has-a-20b-plan-to-build-data-centers-and-clean-power-together\" target=\"_blank\" rel=\"noopener\">data center users like Google<\/a> have bet on wind\/solar-plus-batteries as an energy source for their facilities.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">More to the point, AI is moving very quickly and the buildout of these data centers and their power sources has to happen fast. Nuclear can provide clean baseload electricity, but the two most recent nuclear plants in the US <a href=\"https:\/\/www.sustainabilitybynumbers.com\/p\/nuclear-construction-time\" target=\"_blank\" rel=\"noopener\">took a decade to come online<\/a>. <a href=\"https:\/\/www.vox.com\/future-perfect\/23825844\/geothermal-enhanced-fervo-demonstration-superhot\" target=\"_blank\" rel=\"noopener\">Enhanced geothermal<\/a>, the kind that can be installed anywhere and not just in seismically active places like Iceland, is still years away from deployment at scale, despite <a href=\"https:\/\/techcrunch.com\/2025\/06\/11\/fervo-energy-lands-206m-in-financing-to-build-massive-geothermal-power-plant\/\" target=\"_blank\" rel=\"noopener\">big<\/a> recent <a href=\"https:\/\/cleantechnica.com\/2025\/06\/06\/quaise-proof-of-concept-demo-goes-live-in-texas\/\" target=\"_blank\" rel=\"noopener\">strides<\/a>.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">Solar\/wind plus batteries is a technology that can be deployed fast. The Solar Energy Industries Association (hardly a disinterested actor, but I think it\u2019s right on this) found that while <a href=\"https:\/\/seia.org\/blog\/we-need-solar-and-storage-to-address-the-energy-emergency\/\" target=\"_blank\" rel=\"noopener\">solar and wind plants take on average less than two years<\/a> from conception to coming online (as do battery plants), natural gas can take twice as long and coal three times. Small wonder that in 2024, <a href=\"https:\/\/www.canarymedia.com\/articles\/clean-energy\/chart-96-percent-of-new-us-power-capacity-was-carbon-free-in-2024\" target=\"_blank\" rel=\"noopener\">93 percent of new power capacity<\/a> in the US last year came from solar, batteries, or wind. It\u2019s just about the only electricity source you can get up quickly.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">If you can\u2019t get fast clean energy anymore, because Trump\u2019s policies have made it uneconomical, then AI firms are going to have to rely on slow-to-build, dirtier energy. There is a <a href=\"https:\/\/www.nytimes.com\/2025\/04\/08\/business\/energy-environment\/gas-turbines-power-plants.html\" target=\"_blank\" rel=\"noopener\">huge shortage of natural gas turbines in the US right now<\/a>, with waiting times doubling in the past year. That shortage will get worse if the tax bill shifts demand currently aiming for wind and solar toward natural gas. That will, in turn, slow the data center buildout.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">It might be tempting, if you\u2019re skeptical of AI\u2019s benefits or worried about its risks, to think that this is a positive. They\u2019re slowing down progress, and progress in this field could be dangerous. <\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">I fear this is failing to think an extra step ahead. The most likely result isn\u2019t that no data centers get built, but that they get built in countries that do subsidize solar, wind, and batteries. It would be very good news indeed for China, for one thing, whose AI firms would gain a great opportunity to match US labs, which they\u2019re <a href=\"https:\/\/www.rand.org\/pubs\/perspectives\/PEA4012-1.html#:~:text=China%E2%80%99s%20AI%20development%20will%20likely%20remain%20at%20least%20a%20close%20second%20place%20behind%20that%20of%20the%20United%20States\" target=\"_blank\" rel=\"noopener\">not too far behind as it is<\/a>. It would also be very good news for the <a href=\"https:\/\/www.reuters.com\/business\/media-telecom\/stargate-uae-ai-datacenter-begin-operation-2026-2025-05-22\/\" target=\"_blank\" rel=\"noopener\">United Arab Emirates<\/a> and <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-02-11\/saudi-arabia-s-neom-signs-5-billion-deal-for-ai-data-center\" target=\"_blank\" rel=\"noopener\">Saudi Arabia<\/a>, which are putting huge amounts of oil money behind data center projects for AI firms, <a href=\"https:\/\/helentoner.substack.com\/p\/supercomputers-for-autocrats\" target=\"_blank\" rel=\"noopener\">projects that inevitably will be subject to the pressures of these dictatorships<\/a>.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">The bill would not increase AI safety. It would simply cede leadership in the race to China, and\/or force the US to rely on dirty energy and worsen climate impacts to keep up.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">If you put a bill before Congress stating that it is the policy of the United States to fall behind China in AI development and to put American firms like Google, OpenAI, and Anthropic at a disadvantage to Chinese companies like DeepSeek, Tencent, and Huawei, it would get no votes. But this is effectively what the One Big Beautiful Bill is offering. <\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1agbrixi lg8ac51 lg8ac50 xkp0cg1\">What Congress seems ready to pass is less an industrial policy than an industrial suicide note. It is truly beyond me that any members of the House or Senate, let alone majorities, are signing it.<\/p>\n<p class=\"_1tzd3in1\">You\u2019ve read 1 article in the last month<\/p>\n<p class=\"_1tzd3in4\">Here at Vox, we&#8217;re unwavering in our commitment to covering the issues that matter most to you \u2014 threats to democracy, immigration, reproductive rights, the environment, and the rising polarization across this country.<\/p>\n<p class=\"_1tzd3in4\">Our mission is to provide clear, accessible journalism that empowers you to stay informed and engaged in shaping our world. By becoming a Vox Member, you directly strengthen our ability to deliver in-depth, independent reporting that drives meaningful change.<\/p>\n<p class=\"_1tzd3in4\">We rely on readers like you \u2014 join us.<\/p>\n<p><img alt=\"Swati Sharma\" loading=\"lazy\" width=\"59\" height=\"69\" decoding=\"async\" data-nimg=\"1\" style=\"color:transparent\"  src=\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/07\/1751463369_812_image\"\/><\/p>\n<p class=\"_1tzd3in8\">Swati Sharma<\/p>\n<p class=\"_1tzd3in9\">Vox Editor-in-Chief<\/p>\n","protected":false},"excerpt":{"rendered":"To hear many smart AI observers tell it, the day of Wednesday, June 25, 2025, represented the moment&hellip;\n","protected":false},"author":3,"featured_media":32691,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[691,738,14268,2426,153,80,158,4352,67,132,68],"class_list":{"0":"post-32690","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-future-perfect","11":"tag-innovation","12":"tag-policy","13":"tag-politics","14":"tag-technology","15":"tag-trump-administration","16":"tag-united-states","17":"tag-unitedstates","18":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114783910778314095","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/32690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=32690"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/32690\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/32691"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=32690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=32690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=32690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}