Democratic officials are pursuing different answers to the costs and risks of AI. Pennsylvania and Kentucky have issued orders affecting data-center projects. Two House members want stronger community control, with one proposing a federal construction pause. California is accelerating AI oversight work, while a new Senate bill would direct money from AI-related taxes toward workers. The Guardian's September 26 survey drew attention to these positions; the underlying orders, bills and statements show how differently far each has advanced.

The big change

  • What changed: AI policy is taking several forms at once. State governors have issued data-center or oversight orders, while lawmakers have filed bills and a resolution about construction, local control and workers.
  • Why it matters: A developer in Pennsylvania or Kentucky already faces state-level requirements that a proposed federal bill cannot impose today. Residents, workers and companies need to know which rules apply now and which ideas still require legislation.
  • What to watch: Pennsylvania's permit process and California's November recommendations will show how existing executive action develops. In Congress, the test is whether the proposed moratorium, community-rights measure or worker fund progresses beyond introduction.

State orders place conditions on development

Pennsylvania Governor Josh Shapiro's August 18 executive order changes the state permit review for new data-center proposals. Developers seeking an early review must make legally binding commitments on energy costs, community engagement, jobs and environmental protection, and obtain local approval. AI data centers also lose access to the state's fast-track permitting program. The order does not prohibit all new projects: applications that meet the conditions can still be reviewed under state law.

Kentucky Governor Andy Beshear signed a different order effective August 6. The Kentucky League of Cities' summary says it requires developers to submit energy plans showing how projects will meet their needs without adding costs for other utility customers, and describes environmental-permitting and public-engagement requirements. The summary also says the order directs the Public Service Commission against allowing utilities to recover data-center costs through higher rates for other customers. Together, the Pennsylvania order and Kentucky provisions described by the League impose conditions on development while leaving a route for projects that meet them.

Shapiro has also pressed for federal rules on frontier AI. In remarks prepared for a September 17 summit, he sought independent oversight, transparency and safety standards, and raised the possibility of slowing frontier development until systems are safe. Those are his policy calls, separate from Pennsylvania's enacted state permitting order.

California Governor Gavin Newsom's September 18 order sets implementation deadlines for existing state oversight laws and asks officials for recommendations by November 16 on possible further changes. Those include independent audits inside frontier labs and a verified model “kill switch.” The order requests a feasibility review; it does not itself require companies to install that switch.

Federal construction proposals differ in force

Representative Alexandria Ocasio-Cortez's H.R. 9442, introduced June 24, would temporarily bar construction or upgrading of sites that meet its definition of an AI data center until Congress passes broader AI safeguards. It is a bill referred to House committees, not a moratorium currently in force.

Representative Ro Khanna took a different route in H.Res. 1471, introduced August 3. His resolution says Congress should enact a data-center bill of rights, including community rejection powers, distance limits near homes and schools, public impact reports and cost protections. A House resolution expressing that position would not itself create those rights, and the Government Publishing Office lists it at the introduced stage. The difference matters: Ocasio-Cortez has filed a bill to impose a federal pause; Khanna has filed a resolution urging a future rights framework.

A worker fund is a separate congressional route

Senator Mark Kelly's September 24 announcement says he introduced the Make AI Work for Americans Act. Its published bill text proposes an AI Horizon Fund supported by taxes tied to digital advertising, AI usage and excess profits. The proposed fund would support worker training, paid service routes, entrepreneurship and unemployment benefits. These programs and taxes are proposed, not operating federal policy.

Together, the records describe a live argument over where to put the burden of AI growth: on developers seeking permits, frontier labs facing oversight, communities deciding where facilities go, or companies financing worker support. They are positions taken by individual officials in different offices and at different legal stages, not a settled Democratic platform or a forecast of the 2028 election.

Sources & further reading