Senator Cruz Proposes AI Regulatory Sandbox Bill

Senator Ted Cruz (R-TX) has introduced the SANDBOX Act, a bill aimed at establishing a federal AI regulatory sandbox within the White House Office of Science and Technology Policy (OSTP) to allow AI developers to apply for waivers or modifications to federal regulations for experimental AI products and services. The legislation aligns with the Trump administration's AI Action Plan and seeks to promote American innovation, economic growth, and competitiveness against China while ensuring safety and consumer protections. The bill requires applicants to demonstrate that benefits outweigh risks and mandates incident reporting, though it does not shield companies from civil or criminal liability. Cruz emphasized that the sandbox is not a free pass, as AI companies must still comply with laws, and the bill does not ban state AI regulations, a point of contention with some industry groups and the White House. Public Citizen criticized the proposal for giving OSTP override powers and treating Americans as test subjects, while Cruz and OSTP Director Michael Kratsios expressed willingness to collaborate on regulatory approaches. Cruz has articulated his commitment to ensuring the U.S. wins the global AI race through legislative action that balances innovation with protection of human dignity and free speech.