Artificial Intelligence Investments in the New Reconciliation Bill

Last week’s post provided a look at some of the technology investments in H.R. 1, otherwise known as the One Big, Beautiful Bill Act (OBBBA). This week follows up that post with information on more artificial intelligence/machine learning (AI/ML) investments in the OBBBA that did not make it into last week’s article. These investments make it clear that both the White House and Congress have made developing ever more advanced AI/ML capabilities a national priority.

Weapons Production  

Congress is supplying funds for the Department of Defense (DOD) to leverage AI/ML for the production of weapon systems, including those deployed in cyberspace. To that end, Section 20005 authorizes $250M to advance the “artificial intelligence ecosystem” of the DOD’s testing and development infrastructure. Additionally, U.S. Cyber Command will receive $250M to expand its arsenal of AI/ML capabilities.

Rural Broadband

Defense requirements are not the only ones seeing funding increases for AI/ML. The National Telecommunications and Information Administration (NTIA) oversees a Broadband Equity, Access, and Deployment (BEAD) Program authorized by earlier legislation. Section 40012 supports the BEAD Program by supplying $500M to fund the NTIA’s AI/ML efforts. Of this total, $25M is slated for the purpose of “negotiating master services agreements on behalf of subgrantees of an eligible entity or political subdivision to enable access to quantity purchasing and licensing discounts for the construction, acquisition, and deployment of infrastructure for the provision of artificial intelligence models, artificial intelligence systems, or automated decision systems.”

Rural Health Transformation

Congress also appears to believe that AI/ML technology has the potential to transform rural health care. This is why Section 71401 funds the Centers for Medicare & Medicaid Services with $25M from FY 2028 to 2032 (you read that correctly, 2028-2032!) to, among other things, provide “training and technical assistance for the development and adoption of technology-enabled solutions that improve care delivery in rural hospitals, including remote monitoring, robotics, artificial intelligence, and other advanced technologies.”

Border Security

Funding is also provided for securing the nation’s borders using AI/ML technology. Section 90004 allocates $6.17B for that effort, including to procure and integrate new non-intrusive inspection equipment and associated civil works, including artificial intelligence, machine learning, and other innovative technologies. No specific number for funding this investment is mentioned, but the funding is in connection with deploying autonomous and surveillance systems along the southern border.

Maritime Systems

Improving the autonomy of uncrewed systems is a key priority across the DOD, and while some investments do not specifically mention AI/ML, autonomy increasingly relies on that technology to function. Section 20002, therefore, provides $188.4M to develop and test maritime robotic autonomous systems and enabling technologies.

Meanwhile, Subchapter V ensures the Coast Guard is not left out, providing $75M to remain available until 2029 to procure autonomous maritime systems.

The DOD and other departments will receive significant funding for investments related to AI/ML. We also know from numerous public comments that the federal government is going to focus on testing and acquiring commercial solutions, so companies offering them will find plenty of business opportunities in the years to come.