Rep. Sara Jacobs, D-Calif., introduced a House bill on June 3 aimed at shifting the regulatory landscape so that AI systems no longer break existing federal laws and harm citizens.
Jacobs’ bill, The Sectoral AI Governance Act of 2026, arrives at a time of heightened scrutiny over the ethical use of AI across industries. This legislation seeks to provide more remedies at the federal level.
In a press release, Jacobs said, “Federal laws shouldn’t become optional just because technology is new. AI is already helping make life-altering decisions for millions of Americans — whether they get a loan, a job, or health care coverage — but too often, it’s operating in a gray area. My Sectoral AI Governance Act gives federal agencies clearer authority to write and enforce rules when AI is used to break existing federal laws. We can’t let the American people’s rights and protections become meaningless the moment a company outsources a decision to an algorithm, and my bill is part of the solution.”
For employers and HR teams navigating AI compliance and governance, this bill is another signal that policymakers are taking steps toward stronger, more protective AI regulations.
Key Elements of the Bill
The Sectoral AI Governance Act of 2026 mainly focuses on federal agencies issuing new rules related to algorithmic decision-making systems such as AI. The bill requires those new rules to avoid violating existing federal laws. For example, federal agencies would be required to:
Seek early public input and approval through an Advance Notice of Proposed Rulemaking (ANPRM) before a new rule is proposed.
Consider whether new rules could unnecessarily disrupt government services or public benefits, and to work to avoid those disruptions if possible.
Review existing rules and either revise or repeal them if they are considered outdated or no longer appropriate.
Uphold a state’s authority to regulate its own algorithmic decision-making systems unless they directly conflict with any of the new rules issued under this bill.
SHRM’s Support of AI Governance Policy
SHRM has been vocal about its support for workplace AI governance and has advocated for a national framework that advances this mission. SHRM also recently released a white paper with the goal of providing federal policymakers with guidance on adopting a federal governance framework that pairs innovation with worker protections.
In response to Jacobs’ bill, SHRM released a statement from Emily M. Dickens, J.D., SHRM’s chief administrative officer.
“As AI continues to reshape the workplace, these proposals represent important contributions to the national conversation about how to foster innovation, support workers, and provide clarity for employers,” she said. “SHRM stands ready to serve as a resource to Congress and policymakers as they continue this important work and develop solutions that strengthen America’s workforce, support responsible innovation, and maintain the nation’s global competitiveness.”
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