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Cruz Unveils SANDBOX Act Letting AI Firms Seek Temporary Federal Rule Waivers

OSTP signaled support at a Senate hearing, with the draft giving agencies 90 days to object to waiver requests.

Overview

  • Under the proposal, the White House Office of Science and Technology Policy would run a federal AI sandbox and coordinate agency reviews of company waiver applications.
  • Waivers would last two years and could be renewed up to a total of 10 years, with written agreements, incident reporting, and consumer disclosures required, and the program would sunset after 12 years with annual reports to Congress.
  • If a relevant agency fails to respond within 90 days, a waiver may be treated as approved, and OSTP could overturn agency denials on appeal.
  • Participants complying with their agreements would be shielded from federal enforcement for specified waived rules, while consumers would retain the right to sue for damages.
  • Industry group NetChoice endorsed the bill, while Public Citizen and the Tech Oversight Project warned it could weaken protections and concentrate power in OSTP, a debate shaped by July’s 99–1 Senate vote rejecting a decade-long block on state AI rules.