US House Progressive Caucus Proposes: Congress Should Not Bail Out AI Companies on the Brink of Bankruptcy

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Cailian Press, Ma Lan, Editor-in-Charge Lin Qi, 2026-10-30 11:42

① The U.S. House Progressive Caucus has drafted a resolution demanding that Congress refuse to provide any additional funding or special regulatory support to AI companies and financial institutions facing bankruptcy or collapse due to severe pressure in the artificial intelligence market; ② The resolution also calls for ensuring problematic provisions and holding relevant executives of tech companies that take excessive risks accountable; ③ This resolution is only a non-binding advisory proposal.

Cailian Press, October 30 (Editor Ma Lan) — The artificial intelligence industry has become a key force driving market rises and falls, and its growing influence is prompting political concerns that it may trigger systemic risk, just like the U.S. real estate bubble in 2008, whose bursting set off a global financial crisis.

Out of this concern, the U.S. House Progressive Caucus has drafted a new House resolution demanding that Congress refuse to provide any additional funding or special regulatory support to AI companies and financial institutions facing bankruptcy or collapse due to severe pressure in the artificial intelligence market.

This resolution is only a non-binding advisory proposal. But one of its sponsors, Democratic Representative Greg Casar, said that if Democrats take power in the next Congress, the resolution should be put to a vote as soon as possible so that Congress can make its position clear on the issue of AI bailouts.

Another co-sponsor, Maxine Waters, also stressed that although signs of an AI bubble are becoming increasingly obvious, large tech companies and Wall Street are still using billions of dollars in borrowed funds to push the AI boom forward while taking enormous risks. The government cannot let history repeat itself, and the American people should not once again be forced to pay for the risky speculation of billionaires.

Details of the resolution

The restrictive measures in this resolution are not limited to direct government cash bailouts. It also opposes providing any special regulatory support to AI companies or related financial industries that go bankrupt during an AI market downturn, and requires the government to guide troubled companies into bankruptcy proceedings in accordance with the law.

In addition, the resolution also calls for ensuring problematic provisions and holding relevant executives of tech companies that take excessive risks accountable.

This resolution reflects the government's concern about the increasingly serious rapid expansion of artificial intelligence and massive borrowing, and also resonates with public opinion. According to polls, more than two-thirds of Americans prefer that poorly run AI companies go through normal bankruptcy proceedings rather than receive government assistance.

At the same time, AI trading has also shown signs of weakness. CoreWeave, a cloud service provider backed by Nvidia, is one of the companies most affected by bankruptcy concerns. Its stock price has fallen nearly 50% in the past month, while its co-founder has cashed out $3 billion, seemingly intending to flee this bubble crisis.

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Cailian Press statement: The content of this article is for reference only and does not constitute investment advice. Investors who act on it do so at their own risk.

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