H.R.3434 - Protecting AI and Cloud Competition in Defense Act of 2025 (119th Congress)
Summary
H.R. 3434, the Protecting AI and Cloud Competition in Defense Act of 2025, aims to ensure competition and security in the procurement of cloud computing, data infrastructure, and foundation model solutions by the Department of Defense (DoD). The bill mandates competitive award processes, protects government data rights, and prioritizes multi-cloud technology. It also addresses data training and use protection, requiring updates to the Defense Federal Acquisition Regulation Supplement (DFARS) to prevent unauthorized use of government-furnished data.
Expected Effects
The bill will likely lead to more diverse participation in DoD contracts related to AI and cloud services, potentially reducing reliance on a few dominant providers. It will also strengthen data security protocols and ensure the government retains control over its data. The reporting requirements will increase transparency and accountability in AI procurement.
Potential Benefits
- Increased competition among cloud and AI providers for DoD contracts.
- Enhanced security and protection of government data.
- Greater transparency and accountability in AI procurement processes.
- Mitigation of barriers to entry for small businesses and nontraditional contractors.
- Promotion of multi-cloud technology to avoid vendor lock-in.
Potential Disadvantages
- Potential for increased administrative burden and compliance costs for contractors.
- Possible delays in procurement processes due to competitive bidding requirements.
- Risk of exemptions undermining the intended goals if too broadly applied.
- Uncertainty regarding the long-term impact on innovation and technological advancement.
- Potential for increased oversight and reporting requirements for the Department of Defense.
Constitutional Alignment
The bill aligns with the constitutional mandate to provide for the common defense (Article I, Section 8). By promoting competition and securing government data, it aims to enhance national security. The emphasis on data protection also indirectly supports individual liberties by safeguarding sensitive information. The reporting requirements ensure transparency and accountability to Congress, reinforcing the principle of legislative oversight.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).