US AI SAFETY INSTITUTE FACES MASSIVE FUNDING SLASH – WILL AI REGULATION COLLAPSE?

The U.S. Artificial Intelligence Safety Institute (AISI) could see drastic budget reductions under new congressional spending proposals, potentially derailing critical AI oversight programs. Sources reveal lawmakers are debating cuts exceeding 40% to the $500M initiative launched last year, citing fiscal austerity priorities.

White House officials warn such reductions would “cripple America’s ability to set global AI safety standards,” while tech industry leaders fear delayed certification systems for advanced AI models. The proposed cuts come as China reportedly doubles its AI governance investments through 2026.

Internal documents show the institute might suspend its flagship AI auditing platform development and scale back partnerships with OpenAI and Anthropic. A Department of Commerce spokesperson stated: “We’re working with Congress to preserve core functions,” though declined to specify contingency plans.

Critics argue the cuts could push AI safety leadership to the EU, where lawmakers recently finalized binding AI governance laws. Senate Majority Leader Chuck Schumer vowed to “fight this shortsighted proposal,” while House Appropriations Committee members maintain the trims target “duplicative programs.” Final budget decisions are expected by March 30.

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