Representatives Jay Obernolte (R-CA) and Lori Trahan (D-MA) introduced legislation on July 23, 2026, that mandates large artificial intelligence developers to undergo independent audits and submit transparency reports. This bill is part of the draft legislation known as the Great American AI Act, which aims to enhance AI governance and safety measures.
The FRONTIER Act would create a national risk-based framework for AI governance, requiring large developers to provide transparency reports when deploying frontier models, establish risk-management frameworks, report critical safety incidents, and undergo audits by third-party independent verification organizations. Obernolte stated that the legislation aims to ensure that the regulatory framework keeps pace with advancements in AI without hindering innovation.
The bill stipulates that safety frameworks for frontier AI must be reviewed annually or within 30 days of any significant changes, and critical safety incidents must be reported within 24 hours of discovery. The legislation targets large AI models that have incurred over $1 billion in development costs in the past three years.
The broader Great American AI Act aims to set comprehensive standards for AI companies, covering areas such as cybersecurity, workforce development, education, research, and international cooperation. It also addresses catastrophic risks and proposes mitigation strategies. The legislation includes a three-year ban on states implementing their own regulations on AI development, which has been a contentious issue among various stakeholders in the industry.