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Artificial Intelligence and Federal R&D

In June, we:

• Hosted The Geopolitics of Data and Compute: Power, Policy, and the Future of AI event at the Special Competitive Studies Project’s AI+ Expo in Washington DC. The event opened with a fireside chat between Paul Lekas and Jennifer Bachus (Acting Head of the Bureau of Cyberspace and Digital Policy at the Department of State). The discussion focused on the changes data localization has forced in global data flows, and the challenges that these have posed to international development of AI. The next portion of the event was a panel moderated by Professor Alex Joel at American University’s Tech, Law & Security Program. The event closed with Bethany Abbate interviewing founders of two SIIA member companies, Dr. Ellison Anne Williams (Founder and CEO of Enveil) and Simeon Bochev (Co-Founder and CEO of The Compute Exchange). For a recap of the event, please visit our website here. 
• Submitted detailed recommendations to the American Science Acceleration Project (ASAP) in response to its Request for Information (RFI). In our submission, we emphasized the critical role of public-private partnerships, modernized regulations, and strategic investment in computing resources, scientific data ecosystems, and workforce development.
• Sent a coalition letter to Congressional leadership calling for robust funding of federal R&D agencies, including the NSF, Department of Energy’s Office of Science, NIST, DARPA, and others; the permanent restoration of immediate tax deductibility for R&D expenses; and recognition of R&D as strategic infrastructure. Politico Morning Tech reported on the letter.
• Released a statement supporting Secretary of Commerce Howard Lutnick’s plans to reform the U.S. AI Safety Institute into the Center for AI Standards and Innovation (CAISI). SIIA also received a response from the Commerce Department regarding our March 10 coalition on the importance of NIST for U.S. AI leadership. The letter is signed by Craig S. Burkhardt, Acting Under Secretary of Commerce for Standards and Technology & Acting Director for NIST, who thanked SIIA for our support of NIST’s AI work. 
• Met with OSTP regarding continued challenges under the export control regime governing compute resources and AI. Though the Bureau of Industry and Security (BIS) has suspended enforcement of the Diffusion Rule, it has not yet rescinded the rule, and existing regulations are impeding the ability of firms’ expansion and data center creation beyond the United States. We intend to engage further with BIS and the Department of Commerce.
• Issued a statement on the Senate Finance Committee’s proposal to continue deductions for research and development. The statement highlights our support for the fact that the proposal helps offset the costs of cutting-edge research in the private sector, which is leading the country’s efforts in developing and innovating new and emerging technologies such as AI. SIIA also argues that the R&D deduction makes it easier for companies to pursue projects which serve the long term public good and ensure that America stays the world leader in technology.
• Issued a statement in response to the proposed AI State Moratorium, expressing our support for national, uniform rules for AI governance in the US.
• Published a blog titled "Addressing Propaganda Campaigns in the age of AI” which touches on deepfakes aka “AI slop” in the context of wartime conflict. The piece highlights proactive measures the technology industry has adopted to ensure the stability and traceability of reliable content.

Education and Children's Privacy

In June, we:

• Met with House Energy & Commerce staff to discuss federal privacy legislation, COPPA 2.0 and KOSA. SIIA committed to an ongoing dialogue on kids’ issues, and to continue to operate as a trusted expert and honest broker in service of getting preemptive kids’ protections right at the federal level. 
• Wrote a letter to the Senate Commerce Committee thanking them for their work and bipartisanship on the Children and Teen Online Privacy Protection Act (COPPA 2.0), and asking for small changes to the bill. The Committee approved the bill, setting it up for consideration by the full Senate.
• Signed “Our Pledge to America's Youth - Investing in AI Education." As part of the pledge, signatories were asked to make public commitments. SIIA is committing to work with our members to develop best practices on transparency disclosures for AI tools used in the classroom. Read our statement here.
• Published a blog on how the App Store Accountability Act (ASAA) and similar state bills only provide the illusion of privacy and safety, and instead Congress should pass legislation that provides meaningful privacy and safety protections to children and teens.

Privacy, Data, Cybersecurity and Government Procurement

In June, we:

• Submitted comments on the CPPA’s Proposed Regulations on ADMT. While recognizing improvements in clarity and scope — particularly around advertising and automated decision making — SIIA urges the Agency to further refine areas that remain overly prescriptive or unclear. We continue to advocate for rules that protect consumers while supporting innovation and interstate commerce.
• Were featured on the opening panel of the Future of Privacy Forum’s DC Privacy Forum 2025: Governance for Digital Leadership and Innovation. Paul spoke about the status of federal privacy legislation, the intersection of privacy and AI, and emerging international models for AI governance.
• Sent a letter to leadership of the House Oversight and Senate Homeland Security and Governmental Affairs committees voicing our support for the FIT Procurement Act. On June 25, Reps. Burlison and Subramanyam reintroduced the bill, and in Rep. Burlison’s press release, SIIA President Chris Mohr’s statement of support was featured. His statement also received a media mention in the Springfield Standard. 
• Participated in the 3^rd OECD expert workshop on PETs and AI, which OECD co-hosted with the governments of Japan and Canada. It is intended to showcase high-impact use cases, address the PETs adoption gap, and continue development of the OECD Global Repository of PETs.

Competition, Digital Trade, and Innovation Policy

In June, we:

• Issued a statement commending Canada for dropping its Digital Services Tax (DST). The DST could have cost the U.S. economy $2.3 billion and resulted in thousands of workers losing their jobs.
• Published a blog on digital services taxes (DSTs), strongly encouraging U.S. policymakers to stand up for American competitiveness and combat these discriminatory policies.

Intellectual Property

In June, we:

• Submitted responses to questions for the record from Chairman Issa about critical infrastructure, regulation of disclosure and transparency in AI development, and trade secret disclosure in litigation, following SIIA President Chris Mohr’s previous testimony at the May 7 hearing, “Protecting Our Edge: Trade Secrets and the Global AI Arms Race,” which was before the House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet.
• Sent a letter in support of Senator Thom Tillis’ and Representative Kevin Hern’s Tackling Predatory Litigation Funding Act, which would increase the taxes on any profits earned for third-party litigation funders. Previous efforts for reform in this area have focused on increasing transparency in third-party litigation funding, but this bill goes directly to taxing the benefits of these arrangements.  

Strategic Litigation

In June, we:

• Filed an amicus brief in the Ninth Inning Inc v. National Football League, Inc.  The appeal is before the Ninth Circuit Court of Appeals, and the plaintiffs are seeking injunctive relief against long-established practices without the showing of any actual harm. In our brief, we argue that courts should refrain from upending ongoing business practices in the absence of admissible evidence of injury. Granting such relief would create uncertainty and discourage competition. Because of that, we urge the court to affirm the ruling of the lower court and maintain clear, evidence-based standards in antitrust enforcement. 
• Filed an amicus brief in Epic Games v. Apple, now before the Ninth Circuit, arguing that the district court’s new injunction against Apple’s App Store violates the U.S. Constitution. The brief warns that prohibiting Apple from charging commissions on “linked-out” purchases amounts to an uncompensated taking of property interests protected by the Fifth Amendment. SIIA stresses that this approach threatens fundamental rights relied upon by software and digital sales platforms, including contracts, patents, and proprietary systems.

State Policy

In June, we:

• Published a blog ahead of the New York legislature’s votes for the RAISE Act. SIIA has been active behind the scenes advocating against it, and previously submitted a letter opposing the bill, citing significant concerns about the bill’s impact on innovation, AI development, and the broader tech ecosystem.
• Joined a coalition of leading industry organizations in opposing California’s SB 259 (Wahab), citing its far-reaching and harmful effects on businesses that use dynamic or algorithmic pricing. Read the letter here.
• Submitted comments on the CPPA’s proposed regulations on the Delete Request and Opt-out Program (DROP).
• Submitted a letter urging California lawmakers to oppose AB 1018, warning that the bill represents a case of severe overregulation.
• Sent a letter to Vermont Governor Phil Scott urging a veto of S. 69, a bill that would establish an age-appropriate design code. While recognizing the importance of protecting children online, SIIA warns that the bill could violate the First Amendment and result in increased data collection that threatens, rather than protects, children’s privacy. To see the letter, click here. 
• Sent a letter to Louisiana Governor Jeff Landry to veto the Online Protections for Minors Act (HB 570), citing serious concerns about privacy, constitutional rights, and compliance burdens. While the bill is intended to safeguard children online, SIIA warns it would instead require excessive data collection, infringe on First Amendment rights, and create duplicative consent requirements under existing federal law.
• Sent a letter to Ohio’s HB 96 Conference Committee expressing support for changes made in the Senate version of the bill. The updated language in sections 1713.03–.041 provides necessary clarity on the bill’s scope and obligations, helping to preserve access to innovative digital tools used across Ohio schools.
• Submitted a letter to Illinois legislators expressing strong opposition to a proposed digital advertising tax, citing the disproportionate harm it would cause to small and medium-sized businesses.
• Sent a letter urging a veto of Arizona’s HB 2542, the Protection Procurement Act. While acknowledging the bill’s intent to limit foreign adversary influence, SIIA warned that its broad definitions would unintentionally block US-based companies, including trusted tech, data, and education suppliers, from doing business with Arizona’s state government.