Representatives Greg Casar and Maxine Waters introduced a resolution on October 28, 2026, aimed at preventing federal bailouts for AI companies. The document states that firms facing insolvency should undergo standard bankruptcy proceedings rather than receiving public financial assistance.
The proposed measure rejects both direct cash injections and exceptional regulatory support for AI businesses or related financial sectors during market downturns. The lawmakers argue that standard bankruptcy processes better protect workers, consumers, and pension holders while maintaining market competition.
The resolution emphasizes that senior executives who engage in excessive risk-taking should be held accountable for their business decisions. This initiative responds to growing concerns regarding the debt levels incurred by major technology firms and Wall Street to fund AI infrastructure development.
While the resolution highlights the risks of a potential AI bubble, it remains a non-binding measure that does not require approval from the Senate or the President. Public sentiment appears to align with this stance, as recent polling indicates that over two-thirds of Americans oppose government bailouts for failing AI companies.
