i2Coalition Internet Infrastructure Policy Report: September 2025

Your update on important Internet policy issues

OUTLOOK

Bipartisan Congressional leaders and the President struggled during September to reach a Continuing Resolution (CR) agreement to keep the federal government operating after an October 1 midnight deadline. To pass a CR and avoid a shutdown, the Senate needs some Senate Democrat votes. In a first round of voting, Senate Democrats refused to accept the House-passed CR that would maintain funding levels until November 21 and allow Congressional negotiations on fiscal year 2026 appropriations to continue. The Democrats instead demanded that the CR must immediately include provisions to address several of their key policy priorities, particularly the maintenance of certain health care tax credits. The Trump Administration responded by warning Democratic Congressional leaders that a federal government shutdown would lead to thousands of additional federal worker layoffs and potentially a major reduction and reshaping of government operations. The impasse on finalizing a CR in Congress unfolded in September as the Trump Administration pursued action on many other fronts, including foreign policy discussions about the Ukraine and Gaza wars, a state visit to the United Kingdom, a major Trump address in New York before the U.N. General Assembly, and ongoing trade talks addressing the Trump Administration’s imposition of tariffs. The Supreme Court agreed to expedite its review during this term of the legal challenge against President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs.

TECH POLICY PRIORITIES 

Intermediary Liability/Content Moderation. The House Judiciary Committee held a hearing in early September on Europe and UK laws and rules imposed on the U.S. tech sector, highlighting Chairman Jim Jordan’s (R-OH) opposition to European tech regulations as threats to American innovation and free speech. Several Senators, including Senators Lindsey Graham (R-SC) and Amy Klobuchar (D-MN), have continued to call for a repeal and reform of Section 230 in their public remarks. The FCC Chairman Brendan Carr has indicated he is now less inclined to seek to exercise FCC jurisdiction over the interpretation of Section 230 because he currently sees a more positive trend of increased free speech on social media platforms. In the aftermath of the shocking murder of conservative figure Charlie Kirk on a Utah college campus, future Congressional hearings are planned to examine the radicalization of online forum users, including instances of open incitement to commit politically motivated acts.

Federal Privacy. The House Energy & Commerce Privacy Working Group staff continues the drafting process for federal comprehensive consumer privacy and data security legislation, aiming to release draft text by the end of the year. The Energy & Commerce Committee also plans further proceedings in the coming weeks to address how to move forward with one or more children’s online safety and privacy bills. The FTC launched an inquiry into AI chatbots acting as companions, with plans to investigate how companies measure the negative impacts of AI technology on children and teens.

Copyright/IP. Numerous amicus briefs in support of Cox arguments were filed in early September with the Supreme Court in the Cox v. Sony copyright contributory infringement case. The U.S. Solicitor General filed a motion to participate in the oral argument before the Justices in support of Cox. House Judiciary IP Subcommittee Chairman Darrell Issa (R-CA) continues considering outlines of a discussion draft bill – the American Copyright Protection Act (ACPA) – to establish a judicial site blocking regime for foreign piracy websites. Senate IP Chair Thom Tillis (R-NC) released a bipartisan draft of similar judicial site blocking legislation, the Block BEARD Act. To date no hearings or other specific plans have been announced regarding these judicial site blocking proposals.

Antitrust/Competition. FTC Chairman Ferguson has sent recommendations for revising and deleting anticompetitive regulations to the White House’s Office of Management and Budget (OMB). The head of the Justice Department’s antitrust division, Gail Slater, announced the creation of a new task force focused on combating abusive practices designed to thwart the DOJ’s antitrust enforcement work. A decision on remedies in the federal Google antitrust case addressing search was released, and the remedies phase is underway in the Google advertising antitrust case.

Broadband. The House Energy and Commerce Subcommittee on Communications and Technology held a September 18 hearing to review a package of bills related to broadband permitting and addressing a range of areas including infrastructure deployment, resiliency, access on federal lands, and post-disaster recovery. States have resubmitted their BEAD plans to the Commerce Department to align with the new guidelines imposed by Commerce Secretary Lutnick.

Intermediary Liability/Content Moderation

FCC: Chairman Carr Less Inclined to Reform Section 230 – At Politico’s Tech & AI Summit, FCC Chairman Brendan Carr said he was more satisfied with the current state of social media and less inclined to reform Section 230. Carr said he was pleased with a trend of increased free speech on social media platforms and that he is in a “trust but verify posture.” At the same time, the Chair doubled down against network hate speech in the aftermath of Charlie Kirk’s murder. 

• On September 29 Senator Edward J. Markey (D-MA) wrote to Commerce, Science, and Transportation Committee Chairman Ted Cruz (R-TX) urging him to bring FCC Chairman Carr before the Committee to testify about his censorship of late-night comedian Jimmy Kimmel. On September 18, Senator Markey led Commerce Committee Democrats in a letter to Carr requesting information about his threats against ABC, Disney, and their affiliates over Kimmel’s political commentary. Senator Markey characterized Chairman Carr’s response as ignoring Markey’s questions and whitewashing his own role in the incident. In light of Chairman Carr’s refusal to answer important oversight questions, Senate Markey sent the letter urging Chairman Cruz to hold a hearing with Carr as soon as possible.

• Meanwhile, Senator Graham (R-SC) and Senator Amy Klobuchar (D-MN) have continued to express support for sunsetting the Section 230 liability shield in their public remarks.  

Congress: Committee Activity in Aftermath of Charlie Kirk Tragedy – Republican House and Senate leaders are reacting in the aftermath of the assassination of conservative activist Charlie Kirk on a Utah college campus by scheduling hearings on online issues they see as relevant to the tragedy. The House Oversight Committee Chairman James Comer (R-KY) invited the Chief Executive Officers of Discord, Steam, Twitch, and Reddit to testify at a full committee hearing on October 8. The hearing will examine the radicalization of online forum users, including instances of open incitement to commit politically motivated acts. The House Homeland Committee is also requesting information about social media platform extremism. On September 22, House Homeland Chair Andrew Garbarino (R-NY) and Subcommittee on Counterterrorism and Intelligence Chair August Pfluger (R-TX) wrote letters to multiple social media platforms regarding the proliferation of extremist content in the wake of Kirk’s death. The Committee is requesting information on the platforms’ ability to monitor and report extremist content, share threats with law enforcement, and audit their platforms for vulnerabilities. Responses from Discord, Twitch, Reddit, and GitHub are due by October 6.

Senate: Chair Cruz To Hold Hearing on Censorship – Senate Commerce Committee Chairman Ted Cruz (R-TX) reportedly plans an October hearing to address censorship concerns. Chairman Cruz will focus on government “jawboning”–i.e., the government using its power–or the threat of it–to indirectly bully individuals, institutions, or organizations into doing their bidding when it cannot flat-out force them.

• Chairman Ted Cruz (R=TX) released an investigative report revealing how the Biden administration transformed the Cybersecurity and Infrastructure Security Agency (CISA) into an agent of censorship pressuring Big Tech to police speech. The report outlines how CISA overstepped its authority and violated the First Amendment by developing internal systems to monitor and flag online speech that was not politically aligned with the previous administration.
• Chairman Cruz has highlighted that CISA faced little pushback from the tech industry or the Department of Homeland Security Office of Inspector General, enabling the agency to avoid accountability. In the report. Sen. Cruz warns that while CISA’s censorship efforts focused on social media, similar threats loom with the rise of AI. As Congress drafts new AI legislation, Sen. Cruz urges lawmakers to consider CISA’s unchecked censorship as a cautionary tale. To read the full report – see LINK.

House: Judiciary Chair Continues His Push Against EU Foreign Tech Regulations – The House Judiciary Committee held a hearing in early September on “Europe’s Threat to American Speech and Innovation,” highlighting Chairman Jordan’s (R-OH) fervent opposition to European tech regulations as threats to innovation and free speech. On the censorship front, this hearing focused on the United Kingdom’s (UK) Online Safety Act (OSA) and the European Union’s (EU) Digital Services Act (DSA). On the competition front, this hearing addressed the UK’s Digital Markets, Competition and Consumers Act (DMCC) and the EU’s Digital Markets Act (DMA). Nationalist United Kingdom leader Nigel Farage appeared as a witness. Ahead of this hearing, some members of the congressional delegation to Europe led by House Judiciary Committee Chairman Jordan in the summer returned with the same concerns about European online safety laws violating American free speech that they held prior to the trip. Chair Jordan and other delegation members planned to report their findings to President Trump.

California: Senate Passes Bill Targeting Social Media Algorithms – The California Senate passed SB 771 which would impose fines on large social media companies that intentionally amplify violent or extremist content. Specifically, platforms could receive fines of up to $1 million for knowingly promoting posts that violate California civil rights laws. Governor Newsome has until October 13 to sign or veto the bill, and it faces major opposition from technology trade groups that argue the bill would suppress speech and violate the First Amendment.

i2Coalition’s Perspective – In the 119th Congress, the i2Coalition will continue to build on its record of educating policymakers about the complexities of the Section 230 debate and threats posed to the entire Internet ecosystem beyond the largest tech social media platforms if uninformed legislation is adopted or legal cases are wrongly decided. In 2023, the i2Coalition joined other prominent tech trade associations in a letter and related efforts directed to the Senate Judiciary Committee to oppose the ill-advised, re-introduced EARN IT Act. In 2024, the I2Coalition joined numerous tech trade associations and civil society groups in a letter to Congressional leaders expressing strong support for The Invest in Child Safety Act, which would directly give law enforcement authorities more resources to battle online child predators and would provide support to victims and their families. The i2Coalition continues to build on its collaboration with key allies in the library and higher education communities to promote a full understanding of the scope of Section 230. The i2Coalition filed an amicus brief with the U.S. Supreme Court in Gonzalez v. Google on Jan. 18, 2023, to advance the Court’s accurate understanding of the scope and impact of Section 230’s immunity protections for Internet intermediary providers. On May 21, 2024, the i2Coalition led in sending to Congress a broad affected stakeholders letter signed by ten organizations to express strong opposition to the House Energy and Commerce Committee bipartisan leaders’ draft bill to sunset Section 230 by December 31, 2025. In the 119th Congress, the i2Coalition will also continue to inform and educate policymakers if misplaced enforcement and procedural approaches to other online problems are proposed.

Privacy

Stakeholders Encourage Cross-Border Data Flows in House Privacy Legislation – A group of 21 companies, including Cloudflare, Salesforce, and Crowdstrike, wrote a letter to the House Energy & Commerce Committee leaders requesting the Committee to support cross-border data flows between the US and Europe as the Committee develops privacy legislation. Stakeholders supported the EU-US Data Privacy Framework and urged encouragement of similar programs like Global Cross Border Privacy Rules.

Congress: Lawmakers Introduce Bill to Prevent Surveillance Pricing – In response to concerns that Delta Airlines planned to use AI to set prices, Representatives Greg Casar (D-TX) and Rashida Tlaib (D-MI,) introduced legislation to ban the use of AI surveillance to set prices and wages. Democratic Senators Ruben Gallego (AZ), Mark Warner (VA) and Richard Blumenthal (CT) raised concerns that Delta was signalling it would use AI to set prices. The airline reportedly responded in a letter to the senators that they did not plan to do so. This debate will likely continue as the House works on a comprehensive privacy bill.

House: E&C Subcommittee Hearing on Children’s Online Safety – The House Commerce, Manufacturing and Trade Subcommittee plans to hold a hearing in October on children’s online safety. The hearing will explore an array of approaches to protect kids online and could reveal the Committee leadership’s plans under development for moving one or more children-focused bills for an eventual House floor vote.

FTC Will Investigate AI Chatbots Acting as Companions – The FTC officially launched its inquiry into AI chatbots acting as companions. The Commission is sending orders to seven companies and will investigate how these companies measure the negative impacts of AI technology on children and teens. It aims to evaluate the impacts on children and determine what actions the companies take to reduce negative impacts, restrict children’s use of the platform, and better comply with the Children’s Online Privacy Protection Act Rule. House E&C Chairman Brett Guthrie (R-KY) and Ranking Member Frank Pallone (D-NJ) applauded the FTC’s Inquiry and indicated their intent for Congress to build upon the FTC’s work with bipartisan legislation to better protect children online. The FTC action follows revelations of Meta’s chatbots engaging in sensual conversations, and consumer advocacy groups’ complaints that AI companies were hosting therapy bots.

Massachusetts: Data Privacy Law Advancing – Massachusetts is close to enacting one of the strongest data privacy laws in the country after the state Senate passed the legislation unanimously. If the legislation passes, Massachusetts will align with Maryland’s strong data minimization requirements and would require companies to only collect data required for their services and prohibit the sale of sensitive location and health data. States have been leading on new privacy laws as Congress has failed to act. Even with the House’s Privacy Working Group legislation expected to be released before year’s end, the Senate has yet to signal a path forward.

i2Coalition’s Perspective – i2Coalition works closely with U.S. policymakers to educate about and maximize understanding of the business impacts of privacy and data collection legislation and regulation affecting the technology sector in the U.S. and globally. On Oct. 6, 2022, in Washington, and on Dec. 6 in Brussels, the i2Coalition and eco hosted timely webinars on the status of the EU-US Data Privacy Framework, with panelists from government, industry, and civil society. The i2Coalition will continue to follow EU-US efforts on transatlantic data flows policy making and engage with the responsible U.S. Department of Commerce officials and staff and with our EU allies and partners. In the 119th Congress, we will continue to focus on presenting substantive updates and educational resources to Congress and federal policymakers about the work we are doing and the progress being made with ICANN and NTIA on the development of a sound, workable global access model for domain name registration data meeting the requirements of the GDPR and federal and state laws, and the needs of law enforcement agencies. In Congress and before the Administration, we will continue to emphasize the need to combine enhanced privacy policies with the ability to deploy strong encryption, unencumbered by backdoors, as primary tools we leverage to keep people safe online.

Copyright/IP 

Congress: Status of Judicial Foreign Piracy Site Blocking Legislative Framework – House Judiciary IP Subcommittee Chair Darrell Issa (R-CA) continues to consider the outlines of a discussion draft bill – the American Copyright Protection Act (ACPA) – that would provide for judicial site blocking as a tool to fight foreign websites dedicated to piracy. In the Senate, Judiciary IP Subcommittee Chair Thom TIllis (R-NC) released similar draft judicial site blocking legislation (the Block BEARD Act, which stands for “Block Bad Electronic Art and Recording Distributors Act of 2025”). To date, the Chairmen have not announced specific plans for moving forward, but the legislation is being supported strongly by the content community which seeks action during this Congress.

Supreme Court: Pending Major Copyright Case on Secondary Liability – The Supreme Court’s agreement to hear arguments during this term in Cox Communications v. Sony Music Entertainment, has generated significant amicus brief participation. On August 29, Cox Communications submitted a 67-page filing in this case which will determine if internet service providers (ISPs) should be held liable for customers’ copyright violations, particularly the piracy of digital music. Cox asserted that imposing a duty to terminate Internet services based on allegations of copyright infringement will massively disrupt access to technology. The Trump administration backed Cox’s position in May.

• The amicus briefs in support of Cox were due on September 5. Several major tech companies, including Google, Amazon, and Pinterest, submitted a joint amicus brief in support of Cox. They argued that the Fourth Circuit’s ruling threatens all online service providers with overbroad and unpredictable liability rules. The Supreme Court received an influx of amicus briefs in support of Cox from ISPs and I2Coalition, digital rights groups, legal scholars, and more. (A copy of the brief which i2Coalition co-drafted with major ISPs can be found here.)
• The U.S. Solicitor General has filed a motion to participate in the Cox v. Sony case in support of Cox. In the motion the U.S. asserted that the U.S. has both a substantial interest in the effective protection of intellectual property, which represents a significant portion of the Nation’s economy, and a substantial interest in fostering technological developments and beneficial uses of digital technologies and in ensuring the broad availability of critical communications services like the Internet. A key focus in this case is the perceived fallout (for Internet companies and the public) of leaving the lower court’s contributory infringement liability ruling in place. Most conspicuously, this refers to the possibility of mass Internet-account terminations stemming from providers’ liability-mindful responses to infringement notices.

Courts: Anthropic Settles Lawsuit Involving the Use of Pirated Books for AI Training – Anthropic agreed to pay $1.5 billion to settle a class-action lawsuit by book authors who claimed that the company used pirated copies of their work to train its AI model. The settlement, which has been preliminarily approved by a federal judge, is seen as a potential legal turning point in the battle between AI companies and the writers, artists, and other creative professionals accusing them of copyright infringement. This would be the first settlement in an abundance of cases against technology companies for their use of copyrighted material to train AI. However, this case is unique in that the judge found that Anthropic’s use of the books for training could qualify as fair use, but saving their books to a central library violated the authors’ rights. It remains to be seen how other cases develop and what precedent they set for AI standards around copyright.

U.S. Copyright Office: D.C. Circuit Says Shira Perlmutter Can Resume Copyright Register Role While Lawsuit Proceeds – In the ongoing litigation initiated by USCO Register Shira Perlmutter challenging President Trump’s removal of her from her role earlier this year, the U.S. Court of Appeals for the D.C. Circuit issued an order in September which enjoins Todd Blanche, who is serving as acting Librarian of Congress; Paul Perkins, serving as Acting Register; Sergio Gor, the Director of the White House Presidential Personnel Office; Trent Morse, Deputy Assistant to the President and Deputy Director of the White House Presidential Personnel Office; and the Executive Office of the President and their subordinates and agents, from blocking Perlmutter’s service as Register of Copyrights and Director of the U.S. Copyright Office “pending further order of the court.”

USPTO: Patents-High Rate of PTAB Invalidations Demonstrates the Need for Better Examination – In an opinion article, Robert Grantham argued that the high rate of PTAB invalidations are caused by flaws in the USPTO’s examination process. Since most invalidation decisions rely on prior art that wasn’t found during the original examination, he claimed that the transition from a paper-based to a digital system has caused a decline in the examiners’ ability to search effectively and maintain knowledge of prior art. John Squires, who was confirmed as USPTO Director, expressed similar concerns that the problem is on the front end of the patent process, where patents are reviewed and approved. Grantham believes Squires will push for reforms to improve how examiners search for prior art before granting patents.

i2Coalition’s Perspective – i2Coalition will continue to actively fight for the preservation of Section 512 safe harbors of the DMCA that its members have relied upon, including particularly the conduit provisions, to launch and operate their businesses successfully without being deluged with litigation threats. We will work to educate policymakers to ensure balanced intellectual property policy outcomes for our members. In addition, the i2Coalition will engage through outreach, dialogue, and the public comments process in any future Canadian copyright consultations to urge continuity of balanced approaches in consideration of any reforms of Canada’s safe harbor framework for online intermediaries.

Cybersecurity 

Congress: CISA 2015 Information-Sharing Law Reauthorization Standstill – Senate Homeland Chair Rand Paul (R-KY) cancelled a markup in September that included his bill for CISA 2015 Reauthorization. The Paul bill, which would extend CISA 2015 authorization to September 2027 (House bill has a 10-year extension), would remove exemptions from the Freedom of Information Act (FOIA) on cyber threat intelligence. Currently, threat intelligence shared under CISA 2015 is exempt from FOIA requests, a provision that companies say is a key incentive to voluntarily disclose threat information with each other and the federal government. Chairman Paul also pledged to include language in the bill prohibiting the Cybersecurity and Infrastructure Security Agency from engaging in work to counter disinformation. The Senate bill proposed by Chair Paul has been receiving serious criticisms from stakeholders and fellow Committee members, including Ranking Member Gary Peters (D-MI).

• With the law’s looming expiration date of September 30, the House included a provision in the CR it passed (which failed in the Senate) to extend CISA 2015 until Nov. 20. The House Homeland Security Committee had approved a version of a CISA reauthorization bill, H.R. 5079, the “Widespread Information Management for the Welfare of Infrastructure and Government Act,” or WIMWIG Act, which updates the definitions for new attack surfaces and AI technology use and enhances privacy protection oversight.
• Despite these efforts to reauthorize the expiring Cybersecurity Information Sharing Act of 2015 (CISA), the law is at risk of expiring on October 1. In the House, Homeland Chair Garbarino’s (R-NY) bill to extend the cyber agency failed to get attached to the NDAA, and language to extend the law in the CR also went nowhere. Over in the Senate, Chair Rand Paul (R-KY), after abruptly canceling his committee’s markup later objected on the floor to Ranking Member Peters’ (D-MI) clean 10-year reauthorization. Between the collapse of the CR effort and Paul’s objections, a lapse in reauthorization looks more likely.

CISA Delays CIRCIA Cyber Incident Reporting Rule to 2026 – The Cybersecurity and Infrastructure Security Agency (CISA) has delayed finalizing its rule requiring critical infrastructure operators to report major cyber incidents, moving the deadline to May 2026 to reduce industry burdens and incorporate public feedback. According to trade press reports, CISA said the extension will allow the agency to better harmonize reporting requirements and maximize the rule’s impact while minimizing unnecessary burdens on industry. House Homeland Security Chairman Andrew Garbarino (R-NY) supported the extension to better align with congressional intent, while Rep. Bennie Thompson (D-MS) criticized CISA’s lack of progress, citing missed opportunities for stakeholder input.

NSA: Joint Cybersecurity Advisory – The National Security Agency and other organizations across the world released a joint Cybersecurity Advisory to provide further details on victims of the Salt Typhoon Act and expose tactics used by the state-sponsored actors to threaten critical infrastructure. The report provides actionable guidance for organizations to improve their cybersecurity such as patching known vulnerabilities that have been actively exploited and securing “edge” devices that the hackers have used to get into networks, such as routers.

Trump Admin.: Executive Order Signed for TikTok Deal – President Donald Trump signed an Executive Order on Sept. 25 clearing the way for the completion of a deal to sell TikTok’s US assets to a consortium of mostly American investors. The order marks an important procedural step toward finalizing the TikTok sale, but the deal is not yet complete.

• Although both US and Chinese officials have signaled they are aligned on the deal’s framework, it will still likely require regulatory approvals from both countries. During the signing event, President Trump said Chinese leader Xi Jinping had green-lit the deal and expressed confidence that it would be completed.
• The executive order states that the deal constitutes a qualified divestiture as required by the ban-or-sale law that passed with strong bipartisan consensus last year. The US law, which went into effect in January, bans the app unless parent company ByteDance divests approximately 80% of its US assets to non-Chinese investors. President Trump has repeatedly delayed enforcement of the law. The order also states that the deal to transfer control of TikTok’s US assets will also apply to ByteDance’s other popular platforms, Lemon8 and CapCut. The president is also expected to extend the pause on enforcing the law by another 120 days so that paperwork and regulatory approvals for the deal can be completed. President Trump recently extended the pause until December 16–meaning that if the deal is completed, TikTok’s assets likely won’t be formally transferred until next year.

NIST: RFI Out for Improving Software Development Security – The National Institute of Standards and Technology (NIST) created a consortium to draft guidelines to improve software development security in response to President Trump’s EO 13694. Interested parties’ comments were submitted by September 12 and are under review.

i2Coalition’s Perspective – As policymakers’ concerns and efforts intensify regarding how to improve cybersecurity and guard against growing attacks and threats, i2Coalition has increased its monitoring of this area. We will continue to engage in targeted policy matters and proceedings where the i2Coalition’s participation can enhance understanding and support improvements. In this regard, on November 14, 2022, the i2Coalition filed comments with CISA in response to the RFI on CIRCIA implementation. The i2Coalition also filed comments regarding proposed rules to implement CIRCIA on July 3, 2024. On March 3, 2023, the i2Coalition filed comments on NIST’s Cybersecurity Framework 2.0 Concept Paper. On November 6, 2023, the i2Coalition filed comments on the public draft of NIST’s Cybersecurity Framework 2.0. The i2Coalition filed extensive comments on April 29, 2024, opposing poorly drafted rule proposals in the Department of Commerce Infrastructure as a Service (IaaS) “Know Your Customer” rulemaking and has teamed with our tech industry colleagues to urge reconsideration by the Department.

Antitrust/Competition

FTC: List of Regulations for Revision/Deletion – FTC Chairman Ferguson has sent recommendations for revising and deleting anticompetitive regulations to the White House’s Office of Management and Budget (OMB). The report includes more than 125 regulations for OMB to review. The Chairman highlighted several examples of anticompetitive regulations in the letter concerning issues of DOT preferential treatment, textbook costs, patent monopolies, and land use restrictions. 

FTC: RFI on Employee Noncompete Agreements – The FTC recently issued a Request for Information (RFI) on employee noncompete agreements. The Commission aims to better understand the scope of these agreements to determine potential enforcement actions. Comments must be submitted by November 3.

FTC Protecting Workers Against Noncompete Agreements – The FTC ordered the US’s largest pet cremation business to stop enforcing restrictive noncompete agreements, giving employees more job mobility and negotiating power. The Director of the FTC’s Bureau of Competition, Daniel Guarnera, underscored that the Commission will take action to enforce the laws against anticompetitive noncompetes.

SCOTUS: Justices to Hear Fired FTC Commissioner Case – Taking up a major case about the structure of the federal government, the Supreme Court agreed to consider whether President Trump can fire a member of the Federal Trade Commission despite past precedent restricting a President’s ability to do so. While the court is deciding the case, a lower court ruling in favor of the commissioner, Rebecca Kelly Slaughter, will remain on hold, the Court said. That means she will not remain in office while the case is litigated. Attorney General Pam Bondi welcomed the Court’s intervention, saying on X that “the president, not a lower court judge, has hiring and firing power over executive officials.” In weighing the case, the conservative-majority Court will decide whether a key 1935 Supreme Court ruling called Humphrey’s Executor v. United States, which upheld restrictions on the president’s power to fire FTC members, should be overturned. The ruling would apply not just to the FTC but also to other federal agencies with similar restrictions.

DOJ: Antitrust Division Convenes “Comply with Care” Task Force – In recent remarks delivered at Ohio State University, the head of the Department of Justice antitrust division Gail Slater announced the creation of a new task force focused on combating abusive practices designed to thwart the DOJ’s antitrust enforcement practices. In explaining the need for the new task force, Gail Slater specifically mentioned recent efforts undertaken by Apple and Google to circumvent the legal process and undermine the DOJ’s antitrust enforcement investigations.

Courts: Google Search Case Remedies Ruling – Google will not have to sell its Chrome browser in order to address its illegal monopoly in online search, DC District Court Judge Amit Mehta ruled on September 2. Over a year ago, Judge Mehta found that the search giant had violated the Sherman Antitrust Act; his ruling now determines what Google must do in response. Mehta declined to grant some of the more ambitious proposals from the Department of Justice to remedy Google’s behavior and restore competition to the market. Besides letting Google keep Chrome, the company can continue to pay distribution partners for preloading or placement of its search or AI products. But the judge did order Google to share some valuable search information with rivals that could help jumpstart their ability to compete, and barred the search giant from making exclusive deals to distribute its search or AI assistant products in ways that might cut off distribution for rivals.

Courts: Remedies Phase in Google Digital Advertising Case – A federal judge will determine

final remedies against Google after the company was found in April to have maintained an illegal monopoly in the digital advertising market. Google is arguing that AI is poised to reshape the market, similar to its defense in the search monopolization trial that helped it avoid a breakup by showing how AI changes user behavior. The DOJ has proposed forcing Google to sell one or more of its ad platforms and return a portion of its revenue.

FTC: Amazon Settlement on Prime – The FTC settled a lawsuit with Amazon for $2.5 billion over its tactics to maintain Prime subscriptions. Amazon allegedly manipulated users to sign up for Prime services while making it extremely difficult for users to cancel the subscription. By settling, the company did not have to admit wrongdoing, but was required to stop illegal enrollment and cancellation practices around Prime. While some experts argue this is a major step toward Big Tech accountability, others like former FTC Chair Lina Khan and Sen. Warren (D-MA) asserted that the sum is a drop in the bucket for a corporation like Amazon.

i2Coalition’s Perspective – i2Coalition monitors but has not actively engaged on this issue.

Tax/Trade

Supreme Court: Expedited Review of Trump Admin. Tariff Case – The Supreme Court announced that it expedited oral arguments in the case against President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs. The Court will hear arguments in the first week of November. The Trump administration had petitioned the Supreme Court to quickly overturn the federal court’s decision to strike down the administration’s tariffs. DOJ attorneys requested the accelerated timeline as legal challenges against the tariffs create uncertainty on foreign policy issues.

Trump Admin.: More Tariffs on the Way Using Sec. 232 Authority, Back Up Plan to Lawsuits before SCOTUS – President Trump said the US will hike tariffs on heavy trucks, kitchen cabinets, and pharmaceuticals starting Oct. 1, the latest in a steady series of trade actions. According to his Truth Social posts, the US will impose 25% tariffs on heavy trucks; a 50% tariff on kitchen cabinets and bath vanities; and he plans to increase tariffs on some pharmaceuticals up to 100%. Each of these product sectors was the target of an investigation under Section 232 of the Trade Expansion Act of 1962, rather than under the International Emergency Economic Powers Act (IEEPA), the law the president used to apply previous sweeping tariffs currently under review by the Supreme Court. Also, the administration opened investigations that could result in tariffs on industrial machinery, robotics, medical devices, and personal protective gear. Tariffs on other industries, including semiconductors and the electronics that contain them, are still pending.

EU-US Data Privacy Framework: Positive Legal Ruling – An EU court dismissed a legal challenge by a French Parliament Member to the EU-US Data Privacy Framework (DPF), ruling that the US provides sufficient protection of personal data of Europeans. The decision comes after two previous agreements were rejected by the courts. This is a win for technology companies and businesses sending data between the US and Europe. It’s unclear if and when an appeal might materialize and how the court might reconsider recent U.S. developments. NOYB Honorary Chairman Max Schrems was the challenger to each of the EU-U.S. frameworks that preceded the DPF. In a statement, Schrems said the General Court’s ruling “massively departs” from the findings in his prior cases while opining the court “did not have sufficient evidence” on “a rather narrow challenge.” “We are convinced that a broader review of U.S. law — especially the use of executive orders by the Trump administration should yield a different result,” Schrems added. “We are reviewing our options to bring such a challenge. While the Commission may have gained another year, we still lack any legal certainty for users and businesses.”

U.S. and U.K.: Partnership on 6G, AI, and Critical Technology Cooperation – The U.S. and U.K. have signed a memorandum of understanding to collaborate on advancing 6G, artificial intelligence, and positioning, navigation, and timing (PNT) technologies, announced during President Donald Trump’s visit to England. The agreement emphasizes joint research and development, coordinated engagement in global standards bodies, and strengthened industry partnerships, with future ministerial-level meetings planned to expand the framework. Both nations also committed to improving PNT resilience and aligning priorities to shape the future of global telecommunications standards.

i2Coalition’s Perspective – i2Coalition continues to work for balanced trade agreements that foster digital trade, and we generally support efforts to put trade with China on a more level footing. We support the global digital trade principles articulated in the global industry letter to the G20. We will continue our engagement with USTR in support of those principles and against non-tariff trade barriers. The i2Coalition will also continue our work with our EU-based members on the DSA, DMA, and the NIS2 Directive toward balanced and transparent regulations, including providing input on major relevant U.S. policy discussions having an impact on evolving global intermediary liability principles (e.g., the Section 230 debate in the U.S. Congress). The i2Coalition will continue to underscore and educate USTR officials in the Special 301 proceedings about the key point that USTR should not confuse “notorious markets” with neutral intermediaries such as Internet infrastructure providers. The i2Coalition’s efforts before USTR are succeeding, as demonstrated in the 2024 Review of Notorious Markets for Counterfeiting and Piracy report issued on January 8, 2025, in which not one of our Internet intermediary members or any other traditional Internet infrastructure company was cited in the online markets list.

Artificial Intelligence

California: AI Safety Law Enacted – California Gov. Gavin Newsom signed a first-in-the-nation law on September 29 that will force major AI companies to reveal their safety protocols–marking the end of a lobbying battle with big tech companies like ChatGPT maker OpenAI and Meta and setting the groundwork for a potential national standard.

• The proposal was the second attempt by the author, ambitious San Francisco Democrat and state Sen. Scott Wiener, to pass such legislation after Newsom vetoed a broader measure last year that set off an international debate.
• The measure, SB 53, requires some AI developers to publicly disclose their safety and security protocols. It also creates a way for companies and the public to report major safety incidents to the state. The law includes whistleblower protections for AI workers and lays the groundwork for a state-run cloud computing cluster dubbed CalCompute.

• Some of the bill’s provisions are a policy first anywhere in the world. For example, the law requires public disclosure of security plans and protocols, while the EU AI Act requires such measures to be privately sent to governments.

Trump Admin.: OSTP Issues RFI on Regulatory Reform on AI – The Office of Science and Technology Policy (OSTP) issued an RFI inviting comments by October 27 from all interested parties in identifying existing federal statutes, regulations, agency rules, guidance, forms, and administrative processes that unnecessarily hinder the development, deployment, and adoption of artificial intelligence (AI) technologies within the United States. Through this RFI, OSTP is seeking input from the public, including private sector organizations, industry groups, academia, state, local, and tribal governments, and any other interested parties, on priorities for such regulatory reform or other agency action necessary to promote AI innovation and adoption.

Senate: Commerce Committee Chairman Cruz announces his AI Legislation – Senate Commerce Committee Chair Ted Cruz (R-TX) presented his AI framework and SANDBOX Act in a September Senate Commerce hearing. The framework outlines five pillars to guide Congressional efforts on AI policy and proposes a light-touch regulatory strategy to make safe AI deployment easier in the United States while protecting against emerging risks.

• As part of the pillar’s first step, “Unleash American Innovation and Long-Term Growth,” Sen. Cruz is introducing the Strengthening Artificial intelligence Normalization and Diffusion By Oversight and eXperimentation, or SANDBOX Act. The bill creates a regulatory “sandbox,” a policy endorsed by President Trump’s AI Action Plan, that gives AI developers space to test and launch new AI technologies without being held back by outdated or inflexible federal rules. This bill includes safeguards to mitigate against health, public safety, or fraud risks.
• Under the bill, AI deployers and developers would apply to modify or waive regulations that could impede their work. The Office of Science and Technology Policy (OSTP) would coordinate across federal agencies to evaluate requests under their purview. Congress would collect regular reports on how often rules were waived or modified to better inform future policy decisions and the regulatory structure applicable to AI. The SANDBOX Act is intended to encourage American ingenuity, improve transparency in lawmaking, and ultimately lead to safe, long-term AI usage domestically.

Push for Labelling AI-Generated Content – At the recent Politico Tech & AI Summit and Axios AI+ DC Summit, federal legislators discussed labelling for AI content, among several other issues. In separate interviews, Sen. Amy Klobuchar (D-MN) and Rep. Ro Khanna (D-CA) both advocated for a labelling protocol to identify that something is AI-generated content.

House: Unleashing Low-Cost Rural AI Act – Reps. Jim Costa (D-CA) and Blake Moore (R-UT) introduced the Unleashing Low-Cost Rural AI Act. This bill would require the Departments of Energy, Interior, and Agriculture to study the impact of the expansion of AI data centers in rural communities. Specifically, this research would examine how the electrical grid can be enhanced, including through the integration of alternative energy sources, to meet the demands of AI. The three departments would also investigate how to speed up the review of AI infrastructure expansion under the National Environmental Policy Act.

i2Coalition’s Perspective – The i2Coalition is closely monitoring the rollout of the Trump Administration’s AI Action plan released in July 2025. The i2Coalition filed comments in March 2025 in response to the AI Action Plan RFI, highlighting AI’s dependence on Internet infrastructure and the need for the Action Plan to account for the needs and challenges faced by this critical sector to ensure that the U.S. remains the global leader in AI development and deployment.

Tech

Trump Admin. H1B VIsa Changes Set Off Industry Scramble – The White House raced to calm panicked tech executives in September after President Trump’s Executive Order making changes to the H-1B visa plunged the program into chaos. The announcement that the administration imminently planned to add a new $100K annual fee for H-1B visa applications caught companies and employees off guard, setting off a wave of confusion. Many feared they would have to pay the fee for existing H-1B holders trying to return to the country. However, the administration emphasized the new fee would apply only to new visas.

Trump Admin.: R&D Priorities – The Office of Management and Budget director Russell Vought and the Office of Science and Technology Policy director Michael Kratsios sent a memo to agency heads outlining their Fiscal Year (FY) 2027 Administration Research and Development Budget Priorities and Cross-Cutting Actions. The R&D budgetary priorities include: leadership in critical and emerging technologies (including AI, quantum, and 5G/6G), unleashing energy dominance, strengthening American security and biotechnology, and assuring American space dominance. The memo also outlined priority crosscutting actions: implementing a gold standard for science, building and revitalizing the science and technology workforce, and expanding research infrastructure and efforts.

Senate: Crypto Market Structure Moves Forward – Twelve Senate Democrats released their own version of a crypto market structure framework, as an alternative and negotiating tool on crypto reform efforts in the chamber. Their GOP colleagues are a bit further ahead on market structure work and recently released their discussion draft of the Responsible Financial Innovation Act of 2025. Key crypto leader Cynthia Lummis (R-WY) has indicated that bipartisan negotiations on the market structure legislation are in progress, and a Senate vote on legislation could happen as soon as November.

Crypto: White House Released a Report on Leadership in Digital Financial Technology – The White House released a 160+ page report as a result of an Executive Order that established a Working Group on Digital Asset Markets to propose a federal framework for regulating the crypto industry. Members of the group include Treasury Secretary Scott Bessent, Attorney General Pam Bondi and SEC Chair Paul Atkins. The report requests that Congress build upon the CLARITY Act by granting the CFTC clear authority over spot markets in non-security digital assets, streamline licensing, and incorporate decentralized finance (DeFI) into the framework. The report opposes mandatory KYC for self-custodial wallets and recommends that wallet providers who don’t control user funds should not be treated like financial institutions under the Bank Secrecy Act. It also recommends that Congress make this legal distinction explicit. 

i2Coalition’s Perspective – i2Coalition monitors but has not actively engaged on this issue.

Telecommunications

FCC Appoints Carr as Defense Commissioner – FCC Chairman Brendan Carr has been named defense commissioner, a role overseeing national security, emergency preparedness, and defense activities. In this capacity he will serve as the agency’s main liaison with the Department of Homeland Security.

House: E&C Communications Subcommittee Hearing to Review Bills on Broadband Permitting – The House Energy and Commerce Subcommittee on Communications and Technology held a September 18 hearing to consider a package of bills related to broadband permitting rules. Committee Chairman Brett Guthrie (R-KY) and Subcommittee Chairman Richard Hudson (R-NC) said the proposals are intended to improve access to fast, reliable, and secure broadband. The legislation covers areas such as infrastructure deployment, resiliency, access on federal lands, and post-disaster recovery. More information about the hearing can be found here.

NTIA/Commerce Dept.: Revised BEAD Plans Submitted – States resubmitted BEAD plans to align with the new guidelines imposed by Commerce Secretary Lutnick. The administration has three months to request revisions or approve the state plans, if a government shutdown does not occur. Despite the new directives for a tech-neutral approach to the program, many states are still largely relying on fiber. However, LEO satellite providers aren’t giving up the fight. Starlink has asked the administration to reject plans and demand changes in favor of satellites. Non-deployment funds will also be subject to further guidance from NTIA.

Senate: Luján Calls on NTIA Administrator Roth to Swiftly Release Digital Equity/BEAD Funds – Senate Commerce Telecommunications Subcommittee Ranking Member Luján (D-NM) late last week sent a letter to NTIA’s just confirmed Administrator Arielle Roth to unfreeze digital equity grant funds and swiftly deploy funding to states under the BEAD grant program. He stated that Roth’s first act as Administrator should be to immediately restore the suspended digital equity grants and swiftly approve and release BEAD funding to states like New Mexico.

House: Democrats Push for BEAD Funding Clarity – Rep. April McClain Delaney (D-MD) and nine House Democrats urged the Commerce Department and NTIA to clarify rules on using BEAD funds for non-deployment projects, citing confusion from a June 6 policy update. They acted in an attempt to help states meet a September 4 BEAD deadline and ensure proper use of the $42.5 billion program.

House: Undersea Cable Control Act Vote – The House voted to pass H.R. 2503, the Undersea Cable Control Act, which would require the State Department to develop a strategy to prevent foreign adversaries, including China, from acquiring technology used in undersea cable systems. A similar version of the bill passed in the previous Congress. 

Commerce Dept.: OIG Reports Detail Misconduct and Retaliation at FirstNet Authority – The Department of Commerce’s Office of Inspector General released two reports criticizing FirstNet Authority officials for obstructing audits, withholding documents, and retaliating against an employee who cooperated with investigators. The findings revealed efforts to monitor staff communications, alter or withhold records, and foster a hostile stance toward oversight, leading to leadership changes but no criminal charges. A second report upheld a whistleblower complaint, emphasizing the need for stronger protections for federal employees.

Senate: Republicans’ View on FCC Spectrum Rules, Commerce Chairman Cruz Seeks NDAA Change – Ten Republican senators, including Steve Daines (R-MT), Jerry Moran (R-KS), and Majority Whip John Barrasso (R-WY), asked FCC Chairman Brendan Carr to ensure the 3.55–3.7 GHz CBRS and 6 GHz bands are not disrupted by the reconciliation package’s 800 MHz auction mandate. They argued that altering existing licenses or uses could undermine investments, rural broadband, next-generation Wi-Fi, and small business connectivity. Separately, Senate Commerce Committee Chairman Ted Cruz (R-TX) is working to remove language in the FY 2026 National Defense Authorization Act that would grant the Joint Chiefs of Staff veto authority over certain spectrum bands, noting the House version lacks the provision.

NTIA Hosts Annual Spectrum Policy Symposium – On September 10, NTIA hosted its annual spectrum policy event entitled, “From Talk to Action: Powering America’s Wireless Leadership.” At this event, NTIA Administrator Roth, FCC Commissioner Trusty, and Senator Ted Cruz (R-TX) discussed their policy goals to advance access to more commercial spectrum.

House: Appropriators Approve FY26 Bill with NTIA Funding Cut – The House Appropriations Committee voted 34-28 to advance the FY26 Commerce, Justice, Science, and Related Agencies bill, which would cut NTIA’s funding by 20% to $47 million while increasing funding to $1.28 billion for NIST, nearly $5 billion for the Patent Office, and $310 million for the DOJ Antitrust Division.

House: Panel Advances FY26 Funding Bill – The House Appropriations Committee voted 35-28 to advance the FY 2026 Financial Services and General Government (FSGG) funding bill, which keeps FCC funding at $390.2 million and reduces FTC funding to $388.6 million, while also including riders limiting FCC enforcement of its 2024 digital discrimination order. An amendment from Rep. Frank Mrvan (D-IN), that directed the FCC to prioritize sustainable funding solutions for restoring the lapsed Affordable Connectivity Program (ACP) was rejected (32-27).

i2Coalition’s Perspective – i2Coalition monitors but has not actively engaged on this issue.

Energy & Environment

House E&C Examines Limits on Federal Energy Efficiency Programs and Plans Markup – The House E&C Energy Subcommittee held on Sept. 16 a legislative hearing on a slate of bills that aim to “reform appliance and building policies” related to energy standards. This hearing followed another earlier subcommittee hearing where full committee Chairman Guthrie (R-KY) criticized energy efficiency programs run by the federal government and made the case for legislation to weaken appliance standards set by the Energy Department. DOE’s appliance efficiency program requires the agency to review and set standards for a range of products every six years. Advocates say the program saves consumers billions on utility bills each year. The Energy & Commerce Committee currently plans to hold a markup in October, following the House E&C Energy Subcommittee’s recent hearing. One of the bills that they will consider is H.R. 4626, the Don’t Mess with My Home Appliances Act, which would allow the Energy Secretary to amend or revoke standards and would establish minimum thresholds for energy savings on new standards.

i2Coalition’s Perspective – i2Coalition monitors but has not actively engaged on this issue.

RELEVANT HEARINGS & EVENTS TRACKED BY i2COALITION IN SEPTEMBER

September 3

• House Homeland Security Committee, Markup, LINK (the “Widespread Information Management for the Welfare of Infrastructure and Government Act (CISA information sharing reauthorization), and the “Generative AI Terrorism Risk Assessment Act”)

• House Small Business Committee, “Wired for Growth: How Expanding Broadband Can Revitalize Rural Small Businesses,” LINK

• House Judiciary Committee, “Europe’s Threat to American Speech and Innovation,” LINK

• • House Energy and Commerce Committee, Health Subcommittee, “Examining Opportunities to Advance American Health Care through the Use of Artificial Intelligence Technologies,” LINK

• House Appropriations, “Markup of Fiscal Year 2026 Financial Services and General Government Bill,” LINK

September 9

• House Financial Services Committee, Subcommittee on National Security, Illicit Finance, and International Financial Institutions, “Evaluating the Financial Crimes Enforcement Network,” LINK

• House Energy and Commerce Committee, Subcommittee on Communications and Technology, “Public Safety Communications in the United States,” LINK

• House Energy and Commerce Committee, Subcommittee on Energy, “Building the American Dream: Examining Affordability, Choice, and Security in Appliance and Buildings Policies,” LINK

• Senate Judiciary Committee, Subcommittee on Privacy, Technology, and the Law, “Hidden Harms: Examining Whistleblower Allegations that Meta Buried Child Safety Research,” LINK

September 10

• House Natural Resources Hearing, Permitting Markup, LINK (H.R. 4776 (Rep. Westerman), “Standardizing Permitting and Expediting Economic Development Act” or the “SPEED Act”)

• Senate Commerce, Science, and Transportation Committee, Subcommittee on Science, Manufacturing, and Competitiveness, “AI’ve Got a Plan: America’s AI Action Plan,” LINK

• House Appropriations Committee, “Markup of Fiscal Year 2026 Commerce, Justice, Science, and Related Agencies Bill,” LINK

September 16 

• House Energy & Commerce Committee, Subcommittee on Energy, “Appliance and Building Policies: Restoring the American Dream of Home Ownership and Consumer Choice,” LINK

• House Judiciary Committee, Subcommittee on Crime and Federal Government Surveillance, “Unmanned and Unchecked: Confronting the Rising Threat of Malicious Drone Use in America,” LINK

• House Energy & Commerce Committee, Subcommittee on the Environment, “From Gridlock to Growth: Permitting Reform Under the Clean Air Act.” LINK

• Senate Judiciary Committee, Subcommittee on Crime and Counterterrorism, “Examining the Harm of AI Chatbots,” LINK

September 17 

• Senate Committee on Commerce, Science, & Transportation, Nominations Hearings for for NTSB, OSTP, and Commerce Nominees,” LINK (Mr. Michael Graham, of Virginia, to be a Member of the National Transportation Safety Board; Mr. Ethan Klein, of New Jersey, to be an Associate Director of the Office of Science and Technology Policy; Ms. Joyce Meyer, of Virginia, to be Under Secretary of Commerce for Economic Affairs)

• House Oversight and Government Reform Committee, Subcommittee on Cybersecurity, Information Technology, and Government Innovation, “Shaping Tomorrow: The Future of Artificial Intelligence,” LINK

• Senate Small Business and Entrepreneurship Committee, “Hearings to examine using the 504 program to build America’s manufacturing future,” LINK

September 18

• House Judiciary Committee, Subcommittee on Courts, Intellectual Property, Artificial Intelligence, and the Internet, “AI at a Crossroads: A Nationwide Strategy or Californication?” LINK

• House Financial Services Hearing, Subcommittee on Oversight and Investigations, “Fraud in Focus: Exposing Financial Threats to American Families,” LINK

• House Financial Services Hearing, Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, “Unlocking the Next Generation of AI in the U.S. Financial System for Consumers, Businesses, and Competitiveness,” LINK

• House Energy & Commerce Committee, Subcommittee on Communications and Technology, “Examining Solutions to Expedite Broadband Permitting,” LINK