The Bill That Pits House Against Senate Against Big Tech

On Monday night, the House passed a weaker version of the Senate’s Kids Online Safety Act, or KOSA, aimed at regulating the tech industry and protecting children online. Whether this is a good thing or not depends on whom you ask.

House leaders have taken four years to reach a compromise on their own version of KOSA, which the Senate passed in 2022. The House version, called the Kids Internet and Digital Safety, or KIDS, Act, passed by 267–117 on Monday night.

Representative Frank Pallone Jr., the Democratic co-sponsor of the KIDS Act, lauded it as an example of bipartisan cooperation last week. “This agreement proves Congress can come together to deliver real online protections for our nation’s young people,” he said in a statement.

But Senate Democrats have suggested that they won’t advance the House version. “We’re not going to go with some weak standard,” said Senator Maria Cantwell on Friday. “We are going to go with a law that can be enforced and accountability, and we’re not going with a study, we’re going on with something that holds them accountable.”

Senator Richard Blumenthal, a co-sponsor of KOSA, even suggested that passing the weaker House version could give tech lobbyists ammunition to “exploit the kind of misunderstandings that can occur” between the two chambers and kill provisions they don’t like. “We need to stop this bill in the House and we need to prevent the White House from forming an alliance with Big Tech,” Blumenthal said.

Cantwell, Blumenthal, and their allies say the KIDS Act doesn’t include the strongest parts of KOSA, like the “duty of care” provision, which makes tech companies legally responsible for the well-being of children on their platforms, or the stipulation that KOSA doesn’t preempt states, allowing them to pass stricter measures in the future. The KIDS Act, on the other hand, includes federal preemption language that opponents say could harm states’ ability to enforce tech regulations themselves. In late May, 44 state attorneys general sent a letter to Congress opposing the KIDS Act on the grounds that it would preempt their legislative and legal efforts.

“This bill has no real duty of care. In other words, it has no standard to hold accountable the Big Tech companies that can drive addictive, toxic content through their algorithms and other technologies at children,” Blumenthal said in a press conference on Friday.

On Friday, nearly 100 digital- and kids-safety groups sent a letter to House leadership and the sponsors of the KIDS Act urging them to reject the bill on the grounds that it doesn’t go far enough to protect children from Big Tech. In addition to the “duty of care” issue, the authors noted that the KIDS Act drops the requirement that tech platforms offer a chronological feed rather than an algorithmic, engagement-maximizing one. The authors are also concerned that the KIDS Act defines social media platforms too narrowly, leaving out apps and websites like Roblox, which has exposed some children to sexual and financial exploitation.

But others think both acts are a bad idea—that the provisions in KOSA and KIDS, instead of protecting kids, could harm their ability to engage in free speech and access resources for mental health, addiction, and other social issues. Groups like the American Civil Liberties Union and GLAAD say that measures meant to protect kids could push tech platforms to set age limits and push younger children off of their websites, harming LGBTQ+ kids or others who are looking for community and resources online.

“Maybe by different routes, [the bills] accomplish the same objective,” said Aaron Mackey, the deputy legal director of the Electronic Frontier Foundation. “They’ve pushed online services to have legal obligations to police their content and exclude kids from vital places and space.”

Tech companies have pushed against both the House and Senate versions, but have spoken more favorably about the House bill. Zach Lilly, the director of government affairs for NetChoice, a tech industry group, said that the House bill “is a real effort to improve upon the disastrous censorship regime being championed in the Senate.”

After Monday’s House vote, it remains to be seen which bill will ultimately come out on top and head to the president’s desk—and whether the tech lobby will be able to exploit the rift between House and Senate.

Abdul El-Sayed, a primary candidate for U.S. Senate in Michigan, released an ambitious AI policy platform Monday, joining other progressives like Senator Bernie Sanders in a push for regulation and public ownership. But El-Sayed’s proposal also goes a step further: not just public ownership, but also public governance.

Earlier this month, an AI super PAC spent millions to ensure that Alex Bores, the author of a comparatively weak New York state AI accountability law, wouldn’t make it to Congress. El-Sayed’s proposed changes to the AI industry go far further than Bores’s legislation. When asked whether he was worried about industry political action committees targeting his campaign over his new proposals, El-Sayed shrugged it off. “I’m just not afraid of them or AIPAC or any of the others. What’s another hundred-million-dollar super PAC, I guess?”

El-Sayed’s policy proposal, which he shared exclusively with The New Republic ahead of its release, has three key components: democratic governance of AI, public ownership of AI companies, and safety requirements. His proposal takes inspiration from Sanders’s American AI Sovereign Wealth Fund bill, proposed earlier this month—and like Sanders’s bill, calls for the creation of a sovereign wealth fund to distribute AI companies’ cash into Americans’ pockets. Sanders envisions establishing that via a one-time 50 percent tax on the country’s biggest AI companies, generating an estimated $7 trillion for social safety net programs, plus a yearly dividend for Americans. El-Sayed proposes using that money to fund education and job training, increase unemployment benefits, and boost small business loans.

“I love the senator’s point that we need to own the outcomes of this, in part because it is our data and our knowledge that went into creating it,” El-Sayed said about Bernie’s proposal. They both reason that, since AI has been trained on human writing, research, and collective knowledge, it is a good that belongs to all Americans. “But I think the ownership part needs to go a step further, because we also need some control,” El-Sayed added.

To get that control, he proposes democratic governance of AI companies. He proposes that frontier AI labs be chartered as public benefit corporations, legally mandating them to balance public interest with profit margins. Additionally, he suggests that a majority of board seats at these companies should be democratically elected or publicly appointed, rather than selected by shareholders. And, importantly, he calls for major tech companies like Amazon, Microsoft, Google, and Meta to divest from frontier AI companies. El-Sayed also recommends the establishment of a Food and Drug Administration–style agency to evaluate models before they’re deployed, a ban on AI-generated political media, and requiring companies to work with the Centers for Disease Control and Prevention, National Institutes of Health, and Federal Emergency Management Agency to protect against biosecurity breaches.

El-Sayed’s breezy response to TNR’s question about possible industry retaliation—“What’s another hundred-million-dollar super PAC, I guess?”—references the unrelated money that the American Israel Public Affairs Committee, or AIPAC, has already spent on the race. Through United Democracy Project PAC, AIPAC has spent over $2 million to support one of El-Sayed’s opponents, Representative Haley Stevens, who is the Democratic establishment’s favored candidate. El-Sayed has repeatedly criticized both the Israeli government and AIPAC’s influence in politics. El-Sayed is also facing State Senator Mallory McMorrow, though polls suggest the race is largely between El-Sayed and Stevens.

McMorrow released an AI policy proposal last month that focuses on creating a professional apprenticeship program funded by a token tax, which would charge by the number of tokens used (tokens are the basic units of data that AI models use). Stevens has not released an AI policy plan.

Despite a broad consensus among voters that politicians should regulate the AI industry, few bills have actually been passed. Following AI industry super PACs’ massive spending to defeat Alex Bores in retaliation for the RAISE Act, some feared politicians might become even more reluctant to try.

El-Sayed is hopeful that American voters are ready to push back against money in politics. “We live in an era right now where people are really smart to the old system of money coming in to buy elections. They see the wool being pulled over their eyes and they don’t like it,” he said.

He also doesn’t think politicians have the luxury of time when it comes to regulating AI. “We need to act yesterday,” he said, “and at best, we can act tomorrow.”

As President Trump holds a popular bipartisan bill hostage, Democrats say that the issue is out of their hands, and that the onus is on Republicans to stand up to the president and get the legislation signed.

On Wednesday Trump was set to sign the 21st Century ROAD to Housing Act, which had passed the Senate and House easily. On the Hill, Speaker Mike Johnson was preparing to tout the legislation. But by lunchtime, Trump had thrown a wrench into the works, announcing on Truth Social that he wouldn’t sign the bill into law until Congress passed the Safeguard American Voter Eligibility, or SAVE, America Act. That afternoon, Democrats held a press conference urging Trump to pass the bill. None of their Republican colleagues joined them.

“What a mess,” Senator Tina Smith said on Thursday.

The SAVE America Act would require voters to provide proof of citizenship when registering to vote and a photo ID when voting. Trump has claimed that the bill will prevent noncitizens from voting in elections (an illegal and incredibly rare phenomenon), while opponents of the bill say it would functionally disenfranchise citizens who don’t have passports or other eligible documentation. The bill passed the House in February, but has stalled indefinitely in the Senate and is widely viewed as unpassable. Senator Jon Ossoff called it a “poison pill” that sinks any legislation it’s attached to.

On Thursday, Democratic lawmakers emphasized that dealing with Trump is Republicans’ job.

“We have to just keep on pounding on the idea that you need to sign the damn bill,” Smith said. “I don’t have a lot of clout with the President, but I believe that Senator Scott does, and others who worked so hard to get this bill passed.” Republican Senator Tim Scott sponsored the bill alongside Senator Elizabeth Warren.

Reporting suggests that Johnson might be working on a solution. On Thursday afternoon, he headed to the White House to speak with Trump about the SAVE Act. “We passed the SAVE Act three times in the House. We’ll do it again. We’re working on that, and I’m going to talk with the president about these issues and how to get the agenda moving again. It’s going to be very productive,” Johnson said.

At least one Democrat, Representative Maxine Waters, the ranking member of the House Financial Services Committee, expressed hope that Johnson will find a work-around and get Trump to sign the housing bill: “Mr. Johnson has a bill, he has to get it to [Trump]. I think he’s going to get it to him, and that they’re going to work it out,” she said. “I’m very optimistic.”

There’s a clock ticking in the background. When a bill passes both houses, the president has 10 days to sign it before it automatically becomes law. The 10-day countdown only starts once Johnson officially presents the bill to Trump—which on Thursday evening he said he would do, but as of early Friday it was unclear whether he had actually done so yet.

Warren says that it’s up to Republicans to officially present the bill and start the clock. “There’s plenty that the Republicans in Congress could do if they have the backbone to,” she said.

But there’s also a second complicating factor. If both chambers aren’t in session when the 10 days expire, the bill is automatically pocket vetoed. It’s legally ambiguous whether the recess in early July counts as an adjournment and would trigger a pocket veto. If it does, the bill will be killed. Congress cannot override a pocket veto, and would have to reintroduce and revote on the legislation.

When asked if they thought a pocket veto was Trump’s ultimate goal, Warren and Smith had similar answers. “You’re asking me to get in Donald Trump’s head and figure this out. Sorry, that’s a crazy place,” Warren said.

“I am so not qualified to look into this man’s mind and understand what it is that he is trying to accomplish,” Smith said. “But what he did was sabotage a bill that was strongly supported by Democrats and Republicans in some sort of a fit, because he was mad about the War Powers Act and the Reflecting Pool, and the fact that Republicans don’t support his voter suppression bill.”

Some are calling it the Democratic Tea Party. While establishment Democrats are still downplaying Tuesday night’s primary wins by democratic socialists, progressives say that the New York victories of Claire Valdez, Brad Lander, and Darializa Avila Chevalier represent a new era in Democratic politics.

“I think this is a preview for the national Democratic Party,” said Usamah Andrabi, the communications director for Justice Democrats, a progressive group that endorsed Valdez in New York’s 7th district and Avila Chevalier in New York’s 13th. “Democratic leadership needs to wake up to the fact that they are clearly out of step with their most active, vocal, and energized base of voters.”

House Minority Leader Hakeem Jeffries, on the other hand, spent Wednesday trying to downplay the fact that candidates endorsed by democratic socialist New York City Mayor Zohran Mamdani beat the ones Jeffries had endorsed.

“The mayor and I agree to strongly disagree about some of his endorsements, and he’s got work to do in terms of the conversations that he’s going to have with members of Congress moving forward,” Jeffries told reporters on the Hill on Wednesday.

Jeffries backed incumbent Representatives Adriano Espaillat and Dan Goldman, who lost to Avila Chevalier and Lander, respectively.

The results are arguably personal for Jeffries: On Tuesday night, a group of DSA members chanted “You’re next,” threatening to run a socialist against him in 2028. In fact, the socialist organization almost challenged Jeffries this cycle, but Mamdani said that trying to unseat Jeffries would be a distraction from DSA’s “affordability agenda.”

When asked if he was concerned about being unseated in 2028, Jeffries said: “When you ask me a serious question, I’ll give you a serious answer.”

Representative Rashida Tlaib, a democratic socialist herself, told The New Republic that she’s looking forward to having new allies in Congress. “I welcome them, and I’m looking forward to working with them to get Medicare for All passed, to try to get clean water and clean air for our families,” she said. “I’m proud of them,” she added.

Other Democrats’ reactions might best be described as circumspect. Representative Ro Khanna, a progressive who didn’t endorse in the New York races, gave an optimistic, if vague, statement to The New Republic when asked about the results. “We need a bold progressive vision for 2026 and 2028 and a new deal for our time,” he wrote in a message.

The jury is still out on whether Tuesday’s results are isolated to New York or indicative of a broader shift in the Democratic Party. Progressive strategists are hoping it’s the latter.

“I think this meaningfully advances an entire progressive agenda,” said Andrabi, pointing to how the soon-to-be House members could push for Medicare for All and block military funding to Israel.

“New York City Democratic primaries are a specific thing in that New York DSA has an incredibly strong ground game, Zohran Mamdani is incredibly popular, and it’s a very blue area,” Ryan O’Donnell, the executive director of Data for Progress, admitted. “But I think there’s also a lot of things that can be extrapolated nationwide.”

O’Donnell cited Data for Progress polls that found that voters see candidates who don’t stand up to the American Israel Public Affairs Committee, or AIPAC, as untrustworthy on other issues and that democratic socialist policies like Mamdani’s have nationwide appeal.

He shared Andrabi’s optimism that these victories would push the direction of the party: “When you see victories as large as these, and when you grow your numbers in Congress, it tends to change parts of the party more broadly.”

The bipartisan housing bill the House and Senate passed this week doesn’t go far enough, Democratic leaders say. But it’s still one of the most significant pieces of housing legislation passed in decades. Further Democratic goals on housing might have to wait for a new Congress.

The 21st Century ROAD to Housing Act, which President Trump was slated to sign Wednesday, was a collaboration between Senate Banking Committee Chairman Tim Scott, a Republican from South Carolina, and ranking member Elizabeth Warren, a Democrat from Massachusetts. On Monday night, the bill passed the Senate handily with a vote of 85–5. On Tuesday, the House advanced it with a 358–32 vote. Mid-morning Wednesday, the president announced on social media that he would not be signing the bill until Congress passes the SAVE AMERICA ACT. But he also didn’t say he was vetoing the housing bill.

“The biggest win is we finally did something,” said Senator Peter Welch, a Democrat from Vermont, gesturing at Congress’s usual partisan gridlock. “In this world, the fact that you’ve got Tim Scott and Elizabeth Warren and the entire U.S. Senate to support housing shows that we’re finally focusing on something that really matters to the American people. So I see it as a beginning.”

In terms of substantive victories, Warren emphasized a restriction on the purchase of new single-family homes by large institutional investors that own at least 350 single-family homes.

“For the first time ever, [we] tell private equity ‘no,’ they cannot mow through every neighborhood in America and turn us into a nation of renters,” she told The New Republic.

Warren also pointed to the bill’s efforts to increase housing supply, which housing policy expert Will Fischer of the Center on Budget and Policy Priorities called the “central theme” of the bill. The bill removes some regulatory barriers and streamlines environmental reviews to accelerate the construction of affordable housing—including the first federal guidelines on zoning reform. The bill also creates an “Innovation Fund” that rewards communities that successfully build more housing.

By removing the requirement that manufactured homes have a permanent steel chassis beneath them, the bill could bring down the cost of a new unit by up to $10,000, according to Warren’s office.

These provisions, Fischer said, are “part of what’s needed to address the housing crisis in the country to build more housing, but they are only a first step in order to really solve the affordable housing crisis.”

So what’s next? Fischer pointed to the need for more rental assistance programs that will help the lowest-income Americans afford a place to live. Increasing the supply of housing is critical, he said, but not sufficient to fix the issue. “No matter how much we build, that’s never going to be enough to make housing affordable to tens of millions of people with low incomes,” he said.

Rental assistance programs are a harder sell with Republicans, and the Trump administration has attempted to cut such programs through the Department of Housing and Urban Development. “It’s unlikely that the current Congress is going to take the kind of action that’s really needed to sharply reduce homelessness and evictions,” Fischer said.

Democrats echoed that sentiment in their public statements. “Our work is far from over and this is not the end of the conversation. It is the beginning of a renewed effort to tackle our housing affordability crisis and ensure every American has access to a safe, decent, and affordable place to call home,” said Representative Maxine Waters, a Democrat from California and the ranking member on the House Committee on Financial Services, in a statement.

Still, the message on Tuesday was one of optimism. “Let me put it this way,” Warren said. “The bill is not the one I would have written all by myself, but there are some really big wins here that made all the work and all the pain totally worthwhile.”

This article has been updated.