Labor & Employment Law Daily Wrap Up, FEDERAL LEGISLATION—Bipartisan ‘Great American AI Act’ would create federal framework governing artificial intelligence, (Jun 8, 2026)

By WK Editorial Staff

“Artificial intelligence is advancing rapidly, which is why Congress must take a thoughtful and bipartisan approach to regulating this critical technology,” says Congressman Jay Obernolte.

Last week, Congressman Jay Obernolte (R-CA) and Congresswoman Lori Trahan (D-MA) released a discussion draft of the “Great American AI Act,” bipartisan legislation intended to create a federal framework for how the United States governs artificial intelligence. The purpose of the draft is to solicit feedback from stakeholders, experts, and the public before the bill is formally introduced.

Congressman Scott Franklin (R-FL), Congressman Suhas Subramanyam (D-VA), Congresswoman Erin Houchin (R-IN), and Congressman Scott Peters (D-CA), have all joined in releasing the proposal for public feedback.

“Artificial intelligence is advancing rapidly, which is why Congress must take a thoughtful and bipartisan approach to regulating this critical technology,” said Congressman Jay Obernolte (CA-23). “This discussion draft is an important step toward building a clear federal framework that promotes innovation, protects Americans from emerging risks, and ensures the United States continues to lead the world in AI. We are releasing this draft to hear from stakeholders, experts, and the public so we can strengthen the legislation before it is formally introduced.”

“The threats AI poses to our national security, our safety, and our workforce are here and growing by the day. This bipartisan framework is designed to meet the challenges posed by this rapidly advancing technology without smothering American innovation. It protects workers, establishes real accountability for the most powerful frontier systems, and positions the United States to set the global standard on AI,” said Congresswoman Lori Trahan (MA-03). “This discussion draft is the product of ongoing bipartisan conversations, which we hope to build upon with input from workers, researchers, stakeholders, and members of the public, all of whom have an interest in getting this right.”

Workforce and other matters. Along with the draft, the legislators have included a section-by-section summary of the Act. Title II of the proposed Act would govern workforce matters, including education and capacity building, labor market data and AI workforce research, and worker protections and adjustment assistance. Other titles within the Act include frontier AI governance; cybersecurity; and research, development, and international cooperation.

Protection and adjustment assistance for workers. Within Title II, Subtitle C (Sections 251—257) relates to worker protections and adjustment assistance. Those sections of the draft legislation seek to establish a coordinated set of workforce protection and adjustment provisions aimed at anticipating and mitigating the labor market disruptions associated with artificial intelligence.

Section 251 would modify the Worker Adjustment and Retraining Notification (WARN) Act by requiring employers to disclose when AI is a substantial factor in mass layoffs or plant closures. Employers would be required to provide more granular information, including the type of AI involved, the extent of job displacement attributable to it, and any retraining or upskilling efforts offered.

Forecasts. Section 252 would direct DOL to identify a set of “AI-sensitive” occupations and produce recurring, methodologically transparent forecasts of how AI will affect employment in those roles over various time periods. These forecasts would be required to include uncertainty estimates and be publicly archived, creating a standardized evidence base for workforce planning and policy. Section 253 would complement Section 252 by establishing a prize competition, administered by the National Science Foundation, to incentivize the development of more accurate and timely forecasting models.

Section 254 would require DOL to evaluate how emerging AI-related data, forecasts, and benchmarking tools can be integrated into federal workforce programs—such as training grants or apprenticeships—to improve how participants are selected and how program outcomes are measured.

Analytics and funding. Section 255 calls for a detailed study of a potential “Rapid AI Adjustment Assistance Program,” modeled on existing adjustment assistance frameworks but tailored to AI-related displacement. The study must examine eligibility criteria, administrative design, coordination with existing programs, and cost considerations, with the aim of enabling faster and more targeted support for affected workers.

Section 256 ties federal workforce funding more directly to these analytics by requiring states and local workforce boards, for a limited period, to incorporate federally produced AI forecasts and data when updating lists of in-demand occupations used for training and investment decisions.

Reports. Finally, Section 257 would mandate a comprehensive policy options report, produced by the AI Workforce Research Hub in coordination with the Bureau of Labor Statistics. This report would be required to assess existing federal authorities, identify gaps relative to the pace of AI-driven change, and evaluate policy tools—such as unemployment insurance modernization, portable benefits, wage insurance, and retraining strategies—drawing on both domestic and international examples.

"Artificial intelligence is already transforming our economy, our national security and the way Americans live and work," said Congressman Scott Franklin (FL-18). "Congress has a responsibility to establish clear rules of the road that encourage innovation while ensuring this technology is developed responsibly. The Great American AI Act builds on the bipartisan House AI Task Force and represents an important step toward greater transparency and accountability for advanced AI systems.”

“AI is already changing how we work, live, and learn. We need a plan to protect our national security and workforce. I want the United States to continue to be a leader in AI race but develop this technology in a responsible manner that protects people and communities. To do so, we must get a bipartisan conversation started and work faster to address the challenges and opportunities presented by AI,” said Congressman Suhas Subramanyam (VA-10).

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