AI-company bailout resolution (H.Res. 1642, 119th Congress)
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AI-company bailout resolution
United States — federal
Proposed nonbinding House resolution
H.Res. 1642, 119th Congress, second session
Submitted October 29, 2026; referred to Financial Services, Judiciary, and Education and Workforce.[1]
No binding legal commencement; the resolution proposes a sense of the House.
October 31, 2026 — complete official introduced text and status record
H.Res. 1642 proposes a House position opposing special federal rescues of insolvent AI-related firms and financial firms exposed to the AI sector, while supporting assistance to people harmed by an AI-related downturn. Greg Casar submitted it on October 29, 2026, with Maxine Waters and eleven other original cosponsors. It remains a proposed sense-of-the-House resolution; its text does not itself amend federal law, appropriate money or impose a binding bailout prohibition.[2][1]
Status and sources
The official status record lists referral on October 29 to Financial Services and, additionally, Judiciary and Education and Workforce. That referral is the latest action in the reviewed record; adoption is not established.[1] The Congressional Progressive Caucus’s October 29 announcement describes Casar and Waters as co-leading the initiative.[3]
Proposed opposition to corporate rescues
Resolving paragraph (1) opposes measures rescuing insolvent AI-related firms or shielding their senior executives from accountability for reckless conduct contributing to failure. It specifically addresses special assistance by federal agencies, including the Federal Reserve, Treasury and FDIC, through emergency lending under Federal Reserve Act section 13(3), the Exchange Stabilization Fund, capital infusions, debt guarantees or other means. Its stated opposition also covers financial firms exposed to the AI sector where assistance would sustain operations or prevent orderly resolution.[2]
Resolution processes and accountability
Paragraph (2) favors ordinary bankruptcy for insolvent AI-related firms and statutory orderly resolution for insolvent financial firms. It calls for processes that support workers and consumers, prioritize pension and retirement holders and avoid further market concentration. It also urges civil and criminal accountability, penalties and recovery of gains for senior executives found to have taken excessive risks, breached fiduciary duties or acted unlawfully. These are requested policy positions, rather than new liabilities or a finding against a particular executive.[2]
Support for households and economic reform
Paragraph (3) supports fiscal measures to create jobs and preserve state and local employment and services; unemployment, nutrition and housing assistance; retirement protections; legislation establishing automatic economic stabilizers; and targeted assistance to disproportionately affected households and communities. Paragraph (4) calls for a wider reform agenda addressing speculative bubbles, financing transparency and accountability, and allocation of losses to those benefiting from the risk-taking.[2]
The preamble advances the sponsors’ account of the 2008 crisis, AI-sector financing and possible economic risks. Its economic estimates and allegations are the resolution’s stated rationale, not independent findings established by this article.[2]
Related coverage
- Federal resolution directory
- Employment and worker-transition topics
- Original October 30 news coverage of the October 29 proposal
References
- ↑ 1.0 1.1 1.2 Official congressional status record for H.Res. 1642, 119th Congress, complete XML reviewed October 31, 2026; latest action October 29 referral.
- ↑ 2.0 2.1 2.2 2.3 2.4 H.Res. 1642, official Introduced in House text, October 29, 2026; complete preamble and resolving paragraphs (1)–(4) reviewed October 31.
- ↑ Congressional Progressive Caucus, October 29, 2026 announcement, complete release reviewed October 30.