S. 2164: Algorithmic Accountability Act of 2025
Sponsor
Ron Wyden
Democrat · OR
Bill Progress
Latest Action · Jun 25, 2025
Read twice and Referred to Commerce, Science, and Transportation. for review
Big tech would have to test its AI for bias
Why it matters
Automated tools already screen job applications, rank rental tenants, and price loans — often with no one checking whether they treat people fairly. S. 2164 would require companies with more than $50 million in revenue to test those systems for bias, privacy risk, and accuracy, then report the results to the Federal Trade Commission both before and after the systems go live.
S. 2164, the Algorithmic Accountability Act of 2025, targets what it calls an "automated decision system" — any software or algorithm whose output drives a decision about your life. It applies when those systems shape "critical decisions" in nine areas: education, employment, essential utilities, family planning, financial services, healthcare, housing or lodging, and legal services. Back-end plumbing like web hosting, data storage, and cybersecurity is specifically left out.
The rules hit large players first. A company is covered if, over the prior three years, it averaged more than $50 million in annual gross receipts or carried more than $250 million in equity value — or if it holds identifying information on more than 1 million people, households, or devices. Smaller AI developers get pulled in at a lower bar, more than $5 million in receipts or $25 million in equity, if they build systems for a covered company to use. The dollar thresholds rise with inflation each year.
The heart of the bill is the impact assessment. Covered companies would have to study each system before and after they deploy it, keep the records for three years past the time the system is in use, and send the FTC an annual summary — plus an initial report before anything new goes live. Those assessments must test for differential performance across race, color, sex, gender, age, disability, religion, family status, socioeconomic status, and veteran status. They must also check privacy and security practices and evaluate whether consumers get notice, an opt-out, and a way to contest or appeal a decision.
The FTC carries the load. It would write the detailed rules within two years, and those rules take effect two years after that. The agency would build a public, searchable repository of system summaries, publish annual reports on broad trends, and stand up a new Bureau of Technology led by a Chief Technologist with at least 50 staff, plus 25 more enforcement hires. Violations would be treated as unfair or deceptive practices, state attorneys general could sue on their residents' behalf, and the bill would not override any state, tribal, or local law.
S. 2164 Bill Summary
What S. 2164 actually does.
Companies must audit their AI before and after launch
Covered entities would have to study each automated system before deploying it and keep evaluating it after, hold the documentation for three years past the system's use, and submit an annual summary report to the FTC, with an initial report required before any new system goes live.
Bias testing across race, sex, age, and disability
Each assessment must evaluate whether a system performs differently across consumers' race, color, sex, gender, age, disability, religion, family status, socioeconomic status, and veteran status, and document how those characteristics were identified in the data.
Nine areas of life count as 'critical decisions'
The rules apply when a system shapes access to or the cost of education, employment, essential utilities, family planning, financial services, healthcare, housing or lodging, or legal services.
The $50 million revenue trigger
A company is covered if it averaged more than $50 million in annual gross receipts, carried more than $250 million in equity value, or holds identifying information on more than 1 million consumers, households, or devices. AI developers are covered at a lower bar of $5 million in receipts or $25 million in equity.
A right to notice, opt-out, and appeal
Assessments must evaluate whether consumers get clear notice that a system is being used, a way to opt out, and the ability to understand, contest, correct, or appeal a decision the system makes.
A new 50-person tech bureau at the FTC
The bill creates a Bureau of Technology inside the FTC led by a Chief Technologist, requires at least 50 staff within two years, allows 25 more enforcement hires, and builds a public repository of system summaries that researchers and consumers can search.
Who benefits from S. 2164?
Anyone screened by an algorithm for a job, loan, or apartment
People run through automated systems in hiring, lending, and housing would gain a backstop: covered companies would have to test those systems for bias, disclose that they are being used, and offer a way to contest or appeal the outcome.
Patients and students sorted by automated tools
Because healthcare and education count as critical decisions, systems that triage care or screen applicants would be subject to the same before-and-after testing and reporting requirements.
Civil rights and consumer advocates
The bill requires companies to meaningfully consult outside stakeholders — including advocates for impacted communities — when assessing a system, and gives state attorneys general explicit authority to sue over violations.
Researchers studying AI's real-world effects
The FTC's public repository and annual trend reports would put a searchable record of how covered companies use automated systems out in the open, which the bill says is meant to let researchers and advocates study them.
Who is affected by S. 2164?
Large companies using AI in high-stakes decisions
Firms above the $50 million revenue, $250 million equity, or 1-million-record thresholds would take on new duties to audit systems, consult stakeholders, document risks, and file annual reports with the FTC.
AI developers selling into regulated markets
Developers above the $5 million revenue or $25 million equity bar would be covered if they build systems a covered company uses in a critical decision, and would have to disclose their covered status to buyers.
Employers, landlords, lenders, and healthcare providers
Organizations using automated tools in employment, housing, financial services, healthcare, or essential utilities like electricity, water, and internet would need to test for differential performance and preserve records for years.
The Federal Trade Commission
The agency would have to write rules within two years, build and maintain a public repository, publish annual reports, staff a new technology bureau, and review its regulations at least every five years.
S2164 Legislative Journey
Committee Action
Jun 25, 2025
Read twice and referred to the Committee on Commerce, Science, and Transportation.
About the Sponsor
Ron Wyden
Democrat, OR · 45 years in Congress
Committees: Finance, Joint Committee on Taxation, Energy and Natural Resources
View full profile →
Cosponsors (7)
All 7 cosponsors are Democrats. Cosponsors represent 5 states: Hawaii, Massachusetts, New Jersey, and 2 more.
Committee Sponsors
Commerce, Science, and Transportation Committee
2 of 28 committee members cosponsored
11 Democrats across this committee haven't cosponsored yet. Mobilize their constituents
S. 2164 Quick Facts
- Committee
- Commerce, Science, and Transportation
- Chamber
- Senate
- Policy
- Commerce
- Introduced
- Jun 25, 2025
Read twice and Referred to Commerce, Science, and Transportation. for review
Jun 25, 2025
Official Sources
Official Congress.gov page for the Algorithmic Accountability Act of 2025, with full text, sponsors, and status.
The FTC is the agency that would write the impact-assessment rules and enforce the bill; this hub covers its existing work on AI and algorithms.
The bill directs the FTC to consult NIST when writing its rules, and the AI RMF is the federal methodology for the kind of bias and risk testing the bill mandates.
Violations of the bill would be treated as unfair or deceptive acts or practices under Section 5 of the FTC Act.
S. 2164 was read twice and referred to this committee, which holds jurisdiction over the bill.
S. 2164 Common Questions
Does the Algorithmic Accountability Act ban or approve AI systems?
No. S. 2164 doesn't require government sign-off before a company can use AI. It requires covered companies to test their systems for bias, privacy risk, and accuracy, document the results, and report a summary to the FTC.
Will I find out if an algorithm made a decision about me?
That's part of what companies would have to assess. S. 2164 requires them to evaluate whether you get clear notice a system is being used, a way to opt out, and the ability to contest, correct, or appeal the decision.
What kinds of decisions does the Algorithmic Accountability Act cover?
It applies to "critical decisions" in nine areas: education, employment, essential utilities, family planning, financial services, healthcare, housing or lodging, and legal services — anything with a legal or material effect on your life.
Which companies would have to comply with S. 2164?
Large ones first. A company is covered if it averaged over $50 million in annual revenue or $250 million in equity value over three years, or holds identifying information on more than 1 million people, households, or devices.
What kinds of bias would companies have to test for?
Assessments must check whether a system performs differently across race, color, sex, gender, age, disability, religion, family status, socioeconomic status, and veteran status — plus any other traits the FTC adds.
Does the Algorithmic Accountability Act apply to AI startups?
It can. Developers are pulled in at a lower bar — more than $5 million in average revenue or $25 million in equity — if they build a system a covered company uses to make a critical decision.
Can my state enforce the Algorithmic Accountability Act?
Yes. State attorneys general can sue on behalf of their residents in federal court after notifying the FTC. The bill also says it doesn't override any state, tribal, city, or local law on the same subject.
Has S. 2164 become law, and what happens if it does?
Not yet. It was introduced in June 2025 and referred to the Senate Commerce Committee. If enacted, the FTC would have two years to write the detailed rules, and those rules would take effect two years after that.
Based on S. 2164 bill text
S. 2164 Bill Text
“To direct the Federal Trade Commission to require impact assessments of automated decision systems and augmented critical decision processes, and for other purposes.”
Source: U.S. Government Publishing Office
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