Debt Ceiling Bill Passes House, China Warns of AI Risks, Rural Internet Exchanges

Debt legislation will limit federal discretionary spending, facilitate environmental permitting for infrastructure projects.

Debt Ceiling Bill Passes House, China Warns of AI Risks, Rural Internet Exchanges
Photo by Jim Lo Scalzo of Speaker Kevin McCarthy on Thursday via Shutterstock

June 1, 2023 — The House passed a bill Wednesday night to suspend the debt limit for a further two years on a bipartisan 314-117 vote.

The legislation was negotiated by President Joe Biden and House Speaker Kevin McCarthy, R-Calif., in late May that would suspend the debt ceiling for two years. In exchange, the Biden Administration would be required to limit growth of federal discretionary spending over the next two years to one percent, a budget cut when accounting for increasing inflation rates.

Biden will also be required to adjust work requirements for certain recipients of food stamps and the Temporary Aid for Needy Families program.

Suspending the debt limit, which caps U.S. borrowing and is currently set at $31.4 trillion, will allow the government to keep borrowing money as needed to pay its bills. Under this legislation, the new cap will be set at the spending level it has reached when the suspension expires in 2025.

The legislation includes some minor steps addressing environmental permitting for energy project reviews, although the changes are less sweeping than those proposed by Republications. The agreement as passed by the House amends the National Environmental Policy Act by requiring a single federal agency to lead environmental reviews for infrastructure projects. It also sets a one-year deadline for agencies to issue environmental assessments and a two-year deadline for environmental impact statements.

“These changes will help us build more quickly and responsibly; build more solar, build more wind, EV chargers, transmission, and the other infrastructure we need to secure a clean energy economy,” a White House official said during a media briefing.

The agreement must now pass the Senate and be signed by the president before Monday, June 5, which the U.S. Treasury marked as the day it runs out of funds, to take effect. It now heads to the Senate for a vote where it is expected to pass after Senate Majority Leader Chuck Schumer, D-N.Y., and Minority Leader Mitch McConnell, R-K.Y., endorsed it.

Although the bill received bipartisan support, conservative Republican representatives opposed the bill because it contains only a fraction of the deficit reduction they initially lobbied for, and progressive Democrat representatives opposed the bill over its expansion of work requirements for welfare programs.

Chinese president warns of AI security risks

The Chinese Communist Party warned in a statement Tuesday against the possible risks artificial intelligence can pose to political and social issues.

Chinese President Xi JinPing urged for China to adopt “dedicated efforts to safeguard political security and improve the security governance of internet data and artificial intelligence.”

He highlighted security concerns regarding advancing technologies and called for the CCP to stay “keenly aware of the complicated and challenging circumstances facing national security and correctly grasping major national security issues.”

The CCP must be prepared to “deal with worse-case and extreme-case scenario,” Xi said. He called for the establishment of a risk monitoring and early warning system and a “new pattern of development with a new security architecture.”

This comes a week after State Department officials called for a U.S-led global coalition to set AI regulations. Jennifer Bachus, assistant secretary of state for Cyberspace and Digital Policy, said that the United States and China should not pit against one another, claiming it would “ultimately always lead to a problem.”

Instead, Bachus called for an alliance of the U.S., the European Union, and Japan to take the lead in creating a legal framework to govern AI.

“This is the exact moment where the US needs to show leadership,” she said. “This is a shared problem and we need a shared solution.”

IXP operator to offer solutions to rural regions in U.S.

Germany-based operator of internet exchanges, DE-CIX, and Connected Nation Internet Exchange Points, a joint venture between nonprofit Connected Nation and Newby Ventures, announced in May a strategic partnership for operation of edge internet exchange points in unserved and underserved markets across the United States.

The deal will foster the development of new connectivity hubs in rural areas and will seek to “significantly improve” regional internet performance and build new carrier-neutral interconnection facilities in at least 125 communities in 43 states, a press release said.

With the deal, DE-CIX becomes the IXP platform operator inside CNIXP facilities. IXP’s enable the interconnection and exchange of internet traffic between more than two independent systems.

“People and businesses – and in particular the research and educational sector – in American cities beyond the major hubs need and deserve better Internet performance – faster, lower latency, more resilient, and more secure access to content, clouds, and applications,” said Ivo Ivanov, CEO of DE-CIX.

“An IXP and its ecosystem of connected networks and data centers increases the speed and resilience of Internet connectivity through optimizing the routes for data transport and offering greater redundant data pathways,” read the press release. “It also brings down the costs of connectivity and enables locally bound data to remain local.”