The United States government has started the political course in the worst possible way. Republicans and Democrats failed to reach an agreement to approve the pbudgets necessary to finance operations federal.
The result? A central government shutdown that affects practically all sectors: airports, security, organizations such as the NASA, the FBI, the CIAnational parks and a long etcetera.
This is a stoppage that also directly impacts private companies. Silicon Valleyin particular, does not welcome these types of blockades, which interrupt the functioning of the federal government.
One of the first effects on the country’s technological mecca is the slowdown in H-1B visa processingan indispensable tool that the sector uses to hire highly qualified foreign technological talent.
Startups also often fear these types of federal shutdowns. Those that depend on funds or public contracts They may face delays in payments or suspension of ongoing projects.
Added to this is the economic uncertainty and volatility in the markets stock markets, factors that directly impact investment in technology. This affects both financing rounds and strategic growth decisions.
With the country partially paralyzed, Many companies are forced to slow their expansion due to the instability generated by a “shutdown.” And activities do not resume until both parties reach an agreement.
The longest government shutdown in US history occurred during Donald Trump’s previous term. It lasted 35 days, between December 22, 2018 and January 25, 2019, and affected 800,000 public employeesmany of whom were left without pay for more than a month.
On that occasion, the stoppage had a estimated economic cost of more than 11 billion dollars, according to the Congressional Budget Office, of which $3 billion were considered permanent losses.
This time, the pressure from employers could be key to reaching an agreement faster. The point of friction revolves around public health aid programs: Republicans seek to cut them, which would imply a significant increase in the costs that citizens pay for insurance; Democrats, for their part, are firmly opposed to this measure.
California sets the course for AI
While the federal government remains bogged down in budget disputes, the state of California (under Democratic control) is moving forward with new regulations that seek to bring some order to the uncontrolled growth of artificial intelligence.
In the last three years, AI has evolved so rapidly that governments have failed to keep up with the “regulatory pace.” This has left companies in the sector operate with few limits and practically non-existent supervision.
The new artificial intelligence law passed in California establishes a pioneering framework to regulate the development of advanced AI models. The standard requires large companies to publish how they are integrating national and international standards and best practices in the sector, thus reinforcing transparency.
In the field of security, an official channel will be created for both companies and citizens to notify critical incidents to the California Office of Emergency Services.
In addition, legal protection is added to those who report serious risks arising from the use of advanced models and civil sanctions are contemplated in case of non-compliance.
“California has shown that we can establish regulations to protect our communities while ensuring that the growing AI industry continues to thrive“Governor Gavin Newsom said in a statement. “This legislation strikes that balance. “AI is the new frontier of innovation and California is not only here to support it, but also stands strong as a national leader by enacting the state’s first AI safety legislation.”