House Democrats are seeking to prevent artificial intelligence companies and financial institutions exposed to the industry from receiving taxpayer-funded bailouts if the AI market collapses, calling for failing businesses to enter bankruptcy and executives responsible for unlawful conduct to face legal consequences.
Reps. Greg Casar of Texas and Maxine Waters of California unveiled a resolution Wednesday, October 28, 2026, urging Congress to oppose federal rescues for AI companies and financial institutions facing insolvency because of their investments in the technology.
The nonbinding measure would establish Congress’s position on future AI bailouts while leaving existing federal financial assistance and bankruptcy…