House Democrats Urge Congress to Reject Bailouts for Failing AI Firms

Representatives Greg Casar and Maxine Waters have introduced a resolution urging Congress to oppose federal rescues for insolvent AI-related companies and financial firms exposed to the sector. The proposal says failed AI firms should go through ordinary bankruptcy processes, while public support should protect workers and consumers. The resolution text also opposes special assistance from agencies including the Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation when it would rescue insolvent firms or prevent an orderly bankruptcy.