Congress Enacts AI Provisions in Five-Bill Spending Package

On February 3, 2026, the House passed the Senate-approved fiscal year (FY) 2026 five-bill spending package (H.R. 7148) via a vote of 217-214, sending the measure to President Trump and ending the partial government shutdown.

The package includes the Defense, Labor-Health and Human Services (HHS)-Education, Financial Services, National Security-State and Transportation-House and Urban Development (HUD) bills, which collectively include several AI-focused provisions.

The package also includes a two-week continuing resolution (CR) for the U.S. Department of Homeland Security (DHS), giving Congress and the White House time to continue negotiating a final DHS spending bill.

Below is a summary of key AI provisions in the final spending package.

Summary of AI Provisions

Defense (Joint Explanatory Statement)

• Research, Development, Test and Evaluation (Defense-Wide): The agreement includes an additional $40 million in Research, Development, Test and Evaluation, Defense-Wide within the International Innovation Initiatives and Defense Innovation Unit (DIU) Fielding budget lines to support the growth of trilateral cooperation and directs the Pentagon to, within 90 days and quarterly thereafter (until September 30, 2027), report to Congress on the progress of Pillar 2 technology efforts related to undersea capabilities, quantum technologies, AI and autonomy, advanced cyber, hypersonic and counter-hypersonic capabilities, electronic warfare, innovation and other associated initiatives identified in the 2025 AUKUS Pillar 2 review.
• Education Partnership Agreements (Defense Laboratories): The agreement encourages the Air Force Research Laboratory and other defense laboratories to use new Education Partnership Agreement (EPA) financial assistance mechanisms enabled through section 213 of the National Defense Authorization Act for Fiscal Year 2025 (Public Law 118-159), recognizing the opportunity to help meet Defense Industrial Base workforce development requirements in technology areas critical to national security such as AI, autonomous systems, hypersonics, space systems and advanced manufacturing.

Financial Services and General Government (Joint Explanatory Statement)

• AI-Generated Robocalls (FCC): The agreement commends the Federal Communications Commission (FCC) for adopting a declaratory ruling effectively banning the use of AI-generated robocalls but expresses concern that AI technology is becoming more difficult to detect; it also directs the FCC to, within 60 days, brief Congress on illegal AI-generated robocalls.
• Use of AI/ML in Sanction, Anti-Money Laundering and Intelligence Gathering Programs (Treasury Department): The agreement directs the Treasury Department to, within 270 days, submit a report to the House and Senate Appropriations Committees on the extent to which AI and machine learning (ML) are incorporated into sanction, Anti-Money Laundering and intelligence-gathering programs and how AI and ML can be further incorporated to strengthen them.
• Cybersecurity and IT Oversight (SBA): The agreement directs the Administrator of the Small Business Administration (SBA) to, within 180 days, provide the House and Senate Appropriations Committees and the Committees of jurisdiction with a list of all cybersecurity, software, AI or IT-related projects undertaken in the previous fiscal year.
• AI-Ready Data (OMB): The agreement directs the Office of Management and Budget (OMB) to develop guidance requiring agencies to assess, structure and modernize their datasets for AI applications, and directs OMB to, within 180 days, brief the House and Senate Appropriations Committees on its progress.
• Early Warning Fraud Detection (PRAC): The agreement directs the Pandemic Response Accountability Committee (PRAC) to, within 270 days, issue a report to the House and Senate Appropriations Committees, House Oversight and Government Reform Committee and the Senate Committee on Homeland Security and Governmental Affairs (HSGAC) describing additional savings to be achieved through the creation of an early warning fraud detection program to support federal and state agencies and Offices of Inspectors General in efforts to detect and mitigate waste, fraud and abuse. The report must also describe the PRAC’s ability to leverage AI and ML models and network analysis to identify anomalies or issues not otherwise detected.

National Security, Department of State, and Related Programs (Joint Explanatory Statement)

• Human Rights Reporting: The agreement directs the State Department to include in its human rights reporting an assessment of forced organ harvesting and trafficking in persons for purposes of organ removal. Reports must also include an assessment of the misuse of AI to monitor and survey the actions of religious minorities in each foreign country.

Labor, HHS, Education and Related Agencies (Joint Explanatory Statement)

• Impact of AI on the Economy (BLS): The agreement encourages the Bureau of Labor Statistics (BLS) to evaluate the impact of AI on the economy, including job loss, creation and displacement.
• AI/Biomedical Innovation (NIH): The agreement continues to provide $135 million for the Office of Data Science Strategy to support the National Institutes of Health’s (NIH) efforts to build capacity to leverage AI, ML and data science to accelerate the pace of biomedical innovation.

Health Care Extenders (Division J)

• Report on Wearable Medical Devices (Medicare): Within 18 months the bill text directs the Comptroller General of the United States to conduct a technology assessment of and submit to Congress a report on the capabilities and limitations of wearable medical devices used to support clinical decision-making. The report must include a description of (1) the potential for such devices to accurately prescribe treatments; (2) an examination of the benefits and challenges of AI to augment such capabilities; and (3) policy options to enhance benefits and mitigate challenges of developing or using such devices.

Conclusion

Akin’s lobbying & public policy practice continues to monitor congressional, White House and industry activity on AI and will continue to keep clients apprized of noteworthy advancements.