Technology

The Big Story

States race forward on education AI regulations

State lawmakers gave AI in education a lot of attention in last year's legislative session with more than 50 bills proposed, and schools have wasted no time in trying to teach students about the latest updates and protect their privacy.

The situation, however, is about to get more complicated as the Trump administration wants to curtail state-level regulation of AI, while advocates say they don't see states slowing progress in how AI is used in the classrooms.

The Center for Democracy and Technology (CDT) found that 53 bills were proposed regarding AI in education across 21 states last legislative session, ranging from advancing AI literacy to requiring guidelines on AI use and cyberbullying, and prohibiting AI in certain situations.

While states want to go full steam ahead, the Trump administration is looking to put the brakes on with an executive order in December, attempting to impose a moratorium on states' AI restrictions.

It says state actions are creating a patchwork of regulations and calls on Congress to pass a "minimally burdensome national standard."

"I think it's heartening to see that so much action is being proposed, and some … legislation actually was adopted, even while the state moratorium was kind of looming over state governments," said Christian Pinedo, vice president of external affairs and advocacy at the AI Education Project.

Advancing AI literacy was the most popular topic in state legislatures last year for AI education bills, according to the CDT report, with states seeking to have school districts institute professional development training for teachers and adopt AI education in K-12 schools, along with pushing for higher education institutions to create programs and majors in AI.

The Hill's Lexi Lonas Cochran has more here.

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Crypto Corner

Meeks, Bessent clash over Trump family crypto firm

Rep. Gregory Meeks (D-N.Y.) clashed with Treasury Secretary Scott Bessent at a hearing Wednesday over a Trump family cryptocurrency company, telling Bessent to "stop covering" for the president.

Meeks took aim at a recent report that an investment firm linked to the United Arab Emirates (UAE) took a 49 percent stake in World Liberty Financial, a crypto firm launched by President Trump and his sons in 2024.

The administration would later reach a deal to give the UAE access to some 500,000 advanced AI chips.

"This is no longer just about a shady crypto deal or a possible gift," Meeks said. "When a foreign-linked investor is putting hundreds of millions of dollars into a company controlled by the president's family and at the same time this president is conducting foreign policy with that country. You know what that creates? A national security concern."

He asked Bessent if he would pause and investigate World Liberty Financial's application for a bank charter at the Office of the Comptroller of the Currency (OCC).

Bessent said the OCC was "an independent entity" before accusing Meeks of traveling to Venezuela in 2006 "to lobby [former Venezuelan President] Hugo Chávez on behalf of your donors."

Meeks's voice rose as he and the secretary began to talk over each other. Committee Chair French Hill (R-Ark.) attempted to restore decorum before the New York Democrat yelled at Bessent. The hearing proceeded after order was restored.

Read more about the fiery exchange from The Hill's Ryan Mancini here.

Crypto Corner is a daily feature focused on digital currency and its outlook in Washington.

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