Democracy Forward Sues Federal Agencies Over AI Transparency as Senate Advances NDAA with AI Provisions

October 21, 2025
The Democracy Forward Foundation has filed a lawsuit against four federal agencies alleging failure to respond to FOIA requests on AI use in governance. Meanwhile, the US Senate passed the FY2026 National Defense Authorization Act, introducing multiple AI governance and defense measures.

On October 1, the Democracy Forward Foundation filed a complaint in the US District Court for the District of Columbia against the Office of Personnel Management, General Services Administration, Department of Housing and Urban Development, and Office of Management and Budget. The lawsuit alleges that these agencies failed to respond to Freedom of Information Act requests submitted in June and July seeking records about the use of artificial intelligence in federal rulemaking and regulatory processes. The complaint claims the agencies acknowledged receipt but did not provide the requested information within the required timeframe.

The filing highlights concerns over the federal government’s use of AI tools in administrative and regulatory functions without sufficient transparency. It references instances such as the use of AI to summarize public comments and develop regulatory planning tools. The case raises questions about whether delegating certain rulemaking tasks to AI systems aligns with the Administrative Procedure Act’s requirements for public participation and reasoned decision-making. The agencies have 30 days from service to respond to the complaint.

Separately, on October 9, the US Senate passed the National Defense Authorization Act for fiscal year 2026, which includes multiple AI-related provisions. The legislation establishes a cross-functional team to create a standardized framework for evaluating Department of Defense AI models and mandates assessments of all major systems by January 2028. It also calls for the creation of an Artificial General Intelligence Steering Committee to deliver a defense adoption strategy by April 2026.

The Senate bill includes measures to integrate AI into logistics, mission planning, and cybersecurity operations, as well as initiatives to strengthen domestic AI infrastructure. Among the amendments retained is the Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2026, requiring chipmakers to prioritize domestic customers before exporting advanced semiconductors. The NDAA passed in a 77–20 vote and now proceeds to a conference committee to reconcile differences with the House version.

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