AI Policy Newsletter - January 16, 2026

• On January 13, the Commerce Department's Bureau of Industry and Security published a new License Review Policy allowing case-by-case approval for Nvidia H200 chip exports to China, reversing the previous presumption of denial. The policy requires companies to certify no processor shortage in the US, limit China shipments to no more than 50% of total US market production, employ rigorous Know Your Customer procedures to prevent unauthorized use, and subject chips to third-party testing.

  • The next day, President Trump signed a Proclamation on “Certain Advanced Computing Chips to Protect America’s Economic and National Security,” invoking his Section 232 authority to impose a 25% tariff on advanced chips including NVIDIA H200 and AMD MI325X. The decisions have sparked bipartisan criticism, intensifying the debate over balancing national security and economic interests in U.S.-China tech relations. 

    
    

•  This week, President Trump announced that his administration will be working with US technology companies to ensure that data centers meet the country’s growing AI needs, without adding to the economic burden of consumers. In a Truth Social post, the President touted Microsoft’s five-point “Building Community-First AI Infrastructure” plan, adding that there will be “more to come soon.”

  • In this vein, on January 16, the White House National Energy Dominance Council and a bipartisan group of governors from Pennsylvania, Ohio, and Virginia signed a statement of principles aimed at compelling PJM Interconnection, the mid-Atlantic power grid operator, to hold a power auction for tech companies to bid on contracts to build new power plants. The initiative aims to address rising voter concerns about AI-driven power shortages and price spikes.

    
    

•  On January 13, the Senate unanimously passed the DEFIANCE Act, granting victims of non-consensual, sexually-explicit deepfakes the right to take civil action against individuals who produce, distribute, or possess such content with intent to distribute. Combatting the proliferation of non-consensual deepfake images has been one of the few places Congress has been able to successfully act on regulating AI to date. However, the DEFIANCE Act was stalled by House Republicans last year after passing the Senate, but its supporters will be making a strong push for passage again this year.

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