House Democrats push resolution to let failing AI firms go bankrupt, not bailed out

A non-binding measure from Reps. Greg Casar and Maxine Waters urges ordinary bankruptcy over taxpayer rescues if an AI bubble bursts Two House Democrats want Congress on the record before anything breaks: if the AI boom goes bust, nobody gets rescued with public money. On October 28, 2026, Reps. Greg Casar and Maxine Waters introduced a resolution declaring that Congress should firmly oppose federal bailouts for AI companies facing insolvency. The measure goes beyond direct cash rescues. It also opposes any exceptional regulatory support for AI companies, or for related financial sectors, that hit insolvency during a downturn in the AI market. In place of a rescue, the resolution points struggling firms toward standard bankruptcy procedures. That is the same court process any other insolvent business would face.

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