House Oversight Committee Letter In Reference to Federal AI

As AI and digital technologies reshape every facet of American life, it is imperative

that the federal government not only keep pace-but lead-in modernizing its digital

infrastructure to meet the demands of a 21st-century society.

Modernization of federal IT systems is not a luxury-it is a necessity. Consider

this: in 2001, only 30% of Americans e-filed their taxes. By 2022, that number had

soared to over 97%2

This dramatic shift underscores the transformative power of

digital government services when properly supported and implemented.

Last year, the Chamber released a report, Maximizing Cost Savings: Unleashing

the Value of Federal IT Modernization. The report concluded federal IT spending is not

just a line item-it is a strategic investment. It enables agencies to modernize

infrastructure, enhance citizen services, bolster national security, and drive innovation.

Among its findings, the report highlights that "[a]rtificial intelligence could unleash a

productivity windfall for the U.S. government, worth up to $532 billion annually by

20283

Yet, despite this enormous potential, underinvestment in federal IT continues to

hinder progress. Without robust funding and regulatory certainty, our nation risks

missing out on the cost savings and service improvements that modernization can

deliver.

United States, Congress, House, Committee on Oversight and Accountability. The Federal Government in the Age

of Artificial Intelligence. 5 June 2025, https://oversight.house.gov/he...artificial-intelligence/.

eFile.com. IRS efile Tax Return and Refund Statistics for All Tax Years. eFile.com, https://www.efile.com/efile-ta...return-direct-deposit-statistics/. Accessed 30 May 2025.

U.S. Chamber of Commerce. Federal IT Modernization is a Strategic Investment, New U.S. Chamber Report

Reveals. 15 Apr. 2024, https://www.uschamber.com/tech...new-u-s-chamber-report-reveals. Accessed 30 May 2025.

An even greater concern is the growing patchwork of state-level AI regulations.

These fragmented policies threaten to stifle innovation, increase costs for the federal

government, and deter the development of critical AI tools. To address this, we

strongly support a 10-year moratorium on state AI regulations. A consistent national

framework will reduce compliance burdens, lower the cost of federal IT modernization,

and ensure that the U.S. remains a global leader in AI development.

Finally, we applaud efforts within the "One Big Beautiful Bill Act4" to secure

essential funding for the Department of Commerce. These investments are crucial to

equipping federal agencies with the tools they need to serve the American people

effectively in a rapidly evolving digital economy.

We urge Congress to act to modernize and provide a consistent federal

framework. Doing so will provide great benefits for taxpayers, government efficiency,

and national competitiveness.

Sincerely,

Michael Richards

Executive Director

Chamber Technology Engagement Center

U.S. Chamber of Commerce

4 United States, Congress, House. H.R.1 - One Big Beautiful Bill Act. 119th Congress, 1st session, introduced by Rep.

Jodey C. Arrington, 20 May