The US risks falling behind on advancing artificial intelligence policy priorities, lawmakers and tech industry officials warn more than two weeks into the federal government shutdown.
The partisan impasse over fiscal 2026 spending has halted much of the Trump administration’s work on tech and cyber policy issues and stalled legislative efforts on AI for the past 16 days.
“Our economy, our security, our prosperity, are all going to be tied to AI advancement,” Sen.
President Donald Trump’s “AI Action Plan” calls for increasing federal AI adoption, promoting standards, and deregulation—all intended to bolster American technological leadership globally. Agencies responsible for carrying out those objectives don’t have funding to continue operations, and Congress has yet to move forward policies in support.
Both parties are trading blame for the spending impasse. Senators on Thursday failed to advance a House-passed continuing resolution to temporarily fund the government. Senate Minority Leader
Senate Republicans now aim to advance full-year appropriations bills to fund the government long-term.
“We need to end the shutdown, get back to regular order, and get the appropriations passed,” Sen.
Staff Losses
Prominent industry groups in Washington also fret about the lack of progress on a shutdown deal and its implications for AI policy. Tech companies have rallied behind the Trump administration’s goals to build data infrastructure and accelerate AI development. Yet the shutdown has stripped staff and resources at agencies, including the Commerce Department and Office of Science and Technology Policy, responsible for leading those objectives.
Trump’s AI plan “has been very well received, and industries that develop and use AI are counting on agencies to lead the way in carrying out the plan that will lead to greater AI adoption by the government and private sector,” said Aaron Cooper, senior vice president of global policy at BSA, which represents companies like
“Halted work and reduced staffing affects both cybersecurity and implementation,” Cooper said, “which impedes AI adoption and US competitiveness. We hope both parties reach an agreement to fund the government soon so it doesn’t hold back some very worthwhile progress that can be realized.”
Some officials have raised fears of potential staff layoffs as the shutdown drags—a knowledge and skill loss they say would further jeopardize government tech modernization and policy initiatives.
“The interagency coordination, standards development, and procurement modernization efforts that underpin that plan are people-driven. You can’t automate accountability, and without the staff to carry it forward, we risk losing critical momentum just as other nations are accelerating,” said Joseph Hoefer, AI policy lead at lobbying firm Monument Advocacy, which has
Federal agencies have already been dealing with scaled-back staff following the Trump administration’s mass reductions in force across the government. Since the shutdown, the Office of Management and Budget has issued notices to fire more than 4,000 federal workers, and Director Russell Vought has said thousands more layoffs are expected. The Cybersecurity and Infrastructure Security Agency is among the departments affected.
A federal judge ordered a pause on the Trump administration’s layoffs earlier this week.
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