The National Institute of Standards and Technology and Regulating Artificial Intelligence

The National Institute of Standards and Technology (NIST) is an organization in Maryland within the United States Department of Commerce. It aims to drive American technological innovation. NIST provides support, development recommendations, and resources to U.S. manufacturers in fields such as artificial intelligence (AI), cybersecurity, energy, and technical standards.

NIST’s role has been shaped by both the executive and legislative branches in recent years, with an increasing focus on evaluating AI and cybersecurity. In 2017, the House of Representatives passed H.R.1224, the NIST Cybersecurity Framework, Assessment, and Auditing Act. H.R.1224 aims to use NIST to identify potential gaps or weaknesses present in American cybersecurity systems, to report on these findings to improve national cybersecurity, and to promote consistent and independent oversight of NIST’s regulatory framework.

In addition, President Biden’s Executive Order E.O.14028, “Improving the Nation’s Cybersecurity,” was implemented in May of 2021. It directed NIST and other relevant agencies to receive input from the “private sector, academia, and other appropriate actors” to improve security and regulatory practices. NIST followed the orders of Biden’s executive order and “solicited input from the private sector, academia, government agencies, and others.”

Goals of the TEST AI Act

The Testing and Evaluation Systems for Trusted Artificial Intelligence Act of 2025 (TEST AI Act or S.1633) was introduced by Senator Luján (D-NM) in May of 2025. The Act would require the NIST Director to “establish a pilot program” for developing “measurement standards for the evaluation of artificial intelligence systems.” As AI regulation varies from state-to-state, the TEST AI Act would centralize federal evaluation of artificial intelligence under NIST, aiming to create consistent measurement standards and benchmarks. 

The Act contains specific provisions for the composition of AI testing groups, stating that no citizen of a “covered foreign country” (China, Russia, North Korea, or Iran) would be allowed to serve. Additionally, the maximum of ten members in a testing group must include the following: the Secretary of Commerce or a designee, the Secretary of Energy or a designee, the Director or a designee of NIST, and members from the private sector and academic institutions. The Act would also require results of AI measurement standards tests to be “reviewed by stakeholders from government, the private sector, and academia.” These provisions are intended to maintain a diverse testing group.

The main objective of the Act is to create thorough and fair AI measurement standards and benchmarks for evaluating artificial intelligence systems developed and deployed across both the public and private sectors in the United States. Through these benchmarks and the enactment of AI test groups, the Act aims to evaluate American technology, innovation, and development to promote transparent, safe, and unbiased use of artificial intelligence in the United States.

Possibility for Safe AI Usage through the TEST AI Act

Supporters of the Act argue that federal technological oversight ensures secure and trustworthy use of AI within federal agencies in a period of rapid technological innovation. In addition, the Act would lay groundwork for future regulation of AI. As Richard R. John writes in The Atlantic, supporters claim that regulation has been “one of the most important things” the United States “has ever done to advance technology.” 

Further, proponents argue that the TEST AI Act would lay the groundwork for Congressional regulation of AI, strengthen national security through expert evaluation of potential gaps in American cybersecurity, and build public trust in technological development through greater transparency and accountability. The Act would also position the United States as a global leader in responsible AI usage, as the expertise provided by leaders in academia and the government would provide American citizens and companies alike with more secure and reliable technology.

Concerns Critics Raise About Federal AI Regulation

The Trump Administration has voiced opposition to laws like the TEST AI Act, viewing increased regulation as “barriers to United States AI leadership” that will “paralyze” the technology industry. In his 2025 Executive Order “Removing Barriers to American Leadership in Artificial Intelligence,” President Trump emphasized the need to prioritize maintaining leadership in AI innovation over regulatory restrictions. 

In terms of economic development, critics argue increased regulation can slow economic growth related to AI implementation, resulting in less productive businesses and fewer job opportunities. Companies working on advanced AI tools may also face slower and less flexible development in response to federal guidelines. Further, regulation such as the TEST AI Act could limit opportunities for international collaboration on technological development and oversight. The United Nations claims effective AI regulation requires global collaboration, and without it, “governments will be less able to address growing inequalities in wealth, power, and access to new technologies.”

The TEST AI Act’s Role in Security and Development of the United States

If passed, the TEST AI Act would centralize federal oversight of artificial intelligence through NIST, ensuring consistent standards across the country. However, the legislative future of the Act remains uncertain amid a shifting political environment. The current administration has favored lighter regulation of the tech industry, and opponents may argue that centralizing AI evaluation through NIST could slow development and place the United States at a disadvantage against less-regulated global competitors. 

On the other hand, growing public concern over AI regulation may build pressure for federal action or the passing of the Act and other regulatory bills. With several states already advancing their own bills, Congress may face increasing urgency to establish federal standards. The future of the TEST AI Act will likely depend on the current administration’s stance on tech regulation, federal versus state oversight, and the broader political climate in the years to come.

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