Pramila Jayapal's National AI Charter Act Framework of 1 October 2026 Would License AI Companies Like National Banks: How Far the Banking Comparison Holds

What Jayapal proposed on 1 October 2026

Representative Pramila Jayapal of Washington released the framework for a National AI Charter Act on 1 October 2026. Every AI company operating in the United States would need a federal charter from a new National AI Charter Authority, funded by charter fees and led by a director. Companies valued at USD 1 billion or more would need a vote of Congress to be chartered, and every charter would need reapproval after ten years. The document is a framework summary, not bill text, and it does not define what counts as an AI company.

Which parts of federal banking law it borrows

The release says the charter is modeled on the national bank charter: continuous federal supervision, safety mandates and a wall between the regulated business and the rest of commerce. Three features of federal banking law line up with it: examiners under 12 U.S.C. 481, limits on bank holding companies owning nonbanking firms under 12 U.S.C. 1843, and charter forfeiture for violations of law under 12 U.S.C. 24.

Where it goes further than banking law

National bank charters have no ten-year expiry, and Congress does not vote on individual banks. The AI framework adds both, together with pre-release testing in government facilities, an inspector-triggered kill switch, bans on whole categories of capability and a condition that companies recognize unions.