House Members Unveil the Great American AI Act — Here’s the Full Picture

Members who use artificial intelligence in their businesses will want to know what happened on Capitol Hill this week. On June 4, 2026, Congressman Jay Obernolte (R-CA) and Congresswoman Lori Trahan (D-MA) released a discussion draft of the Great American AI Act—a sweeping, bipartisan proposal to create a national framework for governing artificial intelligence. Four additional members of Congress from both parties co-signed. A discussion draft is not yet a formal bill; it’s released for public comment before official introduction, which means stakeholders like NARPM^® have a window to help shape what the final legislation looks like.

What’s in the Great American AI Act?

The bill covers four major areas. On frontier AI governance, it targets large, powerful AI companies (those with more than $500 million in revenue) and requires them to publicly post risk-management frameworks, publish transparency reports with each new AI model release, and report serious safety incidents to a new federal agency—the Center for AI Standards and Innovation (CAISI)—housed in the Department of Commerce and funded at $100 million per year. The bill would also preempt state and local laws that specifically regulate how AI models are developed—but not how they are used or deployed—with that preemption expiring after three years.

On workforce, the bill funds AI literacy programs from K–12 through community college and creates scholarships for AI-related degree programs. It also requires employers to disclose in layoff notices whether AI was a significant factor in the job cuts. On cybersecurity and fraud, it extends the Cybersecurity Act of 2015 through 2035 and doubles the maximum penalty for AI-enabled fraud to $2 million. On research, it formally establishes the National AI Research Resource (NAIRR) in law, giving researchers and small businesses access to computing power and datasets for AI development.

Why Property Managers Should Pay Attention

AI is already part of how property management companies operate—from tenant screening and market rent analysis to lease drafting and maintenance coordination. The preemption provision could reduce the complexity of navigating different state AI rules across multiple markets, though it is important to note that it applies only to how AI models are built, not how they are used. State and federal Fair Housing, tenant screening, and privacy laws remain fully in force. The transparency requirements placed on large AI developers could also give you better information when evaluating whether the software products you use create legal exposure for your business. And stronger fraud penalties offer some protection against the growing threat of AI-generated scams targeting the rental industry.

A Related Effort: The American Leadership in AI Act

The Great American AI Act does not stand alone. Just six weeks earlier, on April 27, 2026, Congressman Ted Lieu (D-CA) and Congressman Obernolte introduced the American Leadership in AI Act—a package of more than 20 bipartisan proposals drawn from the work of the House Bipartisan AI Task Force, which the two members co-chaired last Congress. Where the Great American AI Act sets guardrails for the most powerful AI systems, the American Leadership in AI Act focuses on building America’s capacity to lead—expanding research infrastructure, modernizing federal AI adoption, and strengthening the AI workforce pipeline. Think of the two bills as complementary: one builds the guardrails, the other builds the runway.

The Full Picture: A National AI Policy Taking Shape

Both bills reflect a broader convergence in Washington. In March 2026, the Trump Administration’s National Policy Framework for Artificial Intelligence called on Congress to establish a single national AI standard, preempt conflicting state laws, and reduce barriers to AI adoption for small businesses. Before that, in 2024, the Senate’s Bipartisan AI Policy Roadmap—developed by a working group led by Senators Schumer and Rounds through nine public forums drawing more than 150 experts—set out a sweeping blueprint covering many of the same themes. Across all three frameworks, the priorities are consistent: American leadership in AI innovation, meaningful protections for workers and the public, and a single national standard over a patchwork of state rules. The debate is no longer about whether Congress will act—it’s about what the rules will say.

NARPM Is Watching

What gets decided in Washington over the next year or two will shape the tools you can use, the rules governing how you use them, and the legal risk you carry if something goes wrong. NARPM’s advocacy team is actively monitoring both the Great American AI Act and the American Leadership in AI Act, with a focus on ensuring that any new federal AI framework supports—rather than limits—your ability to use technology effectively and in compliance with Fair Housing and other legal obligations. We will keep you informed as these proposals develop.