July 16, 2025

Ricketts, Colleagues Call for a Stable Regulatory Environment to Win the A.I. Race

WASHINGTON, D.C. – Today, U.S. Senator Pete Ricketts (R-NE) led a group of colleagues in sending a letter to Commerce Secretary Howard Lutnick on shaping regulations to position the United States as the world capital of artificial intelligence (AI).  The letter calls for the administration to release a rule that creates an environment for American innovators to compete and win, while keeping frontier tech out of the hands of America’s adversaries.  This rule will be another step in the administration’s work to ensure the United States dominates the global AI ecosystem.  The letter reads:

“We can only win the AI race with Communist China if we are wisely limiting our foreign adversary’s opportunities to develop frontier AI and enabling American companies to compete quickly in the global marketplace.  Both prongs are important and the balance between them are crucial.  America is winning the AI race, but the competition has been hard fought and will continue to be.  Steps must be taken quickly since investments happening now will create the world’s tech ecosystem for decades to come.”

The letter follows an April letter led by Senator Ricketts, urging Secretary Lutnick to rescind the Biden Administration’s AI Diffusion Rule.  This Biden-era policy created obstacles to innovation and cooperation by applying tiers and caps on allies seeking to access American technology.  The Trump administration rescinded the AI Diffusion Rule on May 7.

The letter was also signed by Senators Kevin Cramer (ND), John Kennedy (LA), James Lankford (OK), and Rick Scott (FL).

Read the full letter here or below.  

Dear Secretary Lutnick,

Under President Trump’s leadership, the United States is shaping emerging technologies globally and positioned as the world capital of artificial intelligence (AI). The President’s cabinet is unshackling American energy, cutting burdensome red tape, and unwinding Biden’s bad policies. One important example of bolstering American prosperity was your decision to rescind and replace the Biden administration’s AI Diffusion Rule. This rule would have helped China win the AI race, and replacing this rule quickly will provide American innovators a stable environment to compete and win.

The Biden Administration’s AI Diffusion Rule, as accurately stated on the Bureau of Industry and Security’s website, “…would have stifled American innovation and saddled companies with burdensome new regulatory requirements.” The rule undermined relationships with allies and partners around the world. It hamstrung American companies, and the rule ultimately gave friendly nations an incentive to turn to Communist China for their emerging tech needs. Repealing this rule was a step forward for the nation.

While we are currently ahead of Communist China in the AI race, we must continue to help our nation, companies, and innovators succeed. Failure to maintain our lead in AI development means that we could be at the mercy of Communist China for many critical industries. Examples include cryptography, next-generation pharmaceuticals, and advanced defense materials. President Trump has been at the forefront of securing investment during his recent successful trip to the Middle East. He closed deals promoting U.S. technology as the global standard and secured landmark investments in frontier AI development at home. We must continue to capitalize on this momentum by ensuring allies and partners building out their AI investments see the U.S. as the superior, most reliable partner.

One crucial next step in this competition is providing American innovators, exporters, and nations around the world a stable exporting structure. Mr. Secretary, your testimony before the Senate Appropriations Committee included key elements of an AI diffusion framework that would enable American AI diffusion around the world while also limiting China’s ability to develop frontier AI. The Trump administration should not return to Biden’s tiers and caps that confused close allies and partners.

Instead, know-your-customer and security controls should be applied to technologies designed to train frontier AI models. This approach, while allowing other American technologies to flow freely, will ensure the United States dominates the global AI ecosystem.

We can only win the AI race with Communist China if we are wisely limiting our foreign adversary’s opportunities to develop frontier AI and enabling American companies to compete quickly in the global marketplace. Both prongs are important and the balance between them are crucial. America is winning the AI race, but the competition has been hard fought and will continue to be. Steps must be taken quickly since investments happening now will create the world’s tech ecosystem for decades to come.

We thank you for your decisive actions so far bolstering American leadership, security, and prosperity. We look forward to working with you and President Trump to make America the AI capital of the world.

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