Amid AI Boom, Wyden Unveils Proposals to Ensure Wage Security, Fair Contributions from Data Centers
New Draft Legislation from Finance Ranking Member, Leader Schumer, Senators Bennet and Warren, Improves and Expands Unemployment Insurance and Provides Additional Wage Security for Workers Displaced by AI Disruption. Wyden Also Touts Bill to Eliminate Unnecessary Federal Tax Breaks for Data Center Construction, Establish Excise Tax for Data Centers to Fund Worker Assistance.
Washington, D.C. – Senate Finance Committee Ranking Member Ron Wyden, D-Ore., today released new proposals to ensure federal policy is prepared to address changes in the economy brought on by the AI boom, such as worker displacement and the impacts of rapid growth of data center construction.
“Americans feel the looming fear of AI job losses, and Congress has a responsibility to help the country prepare,” Wyden said. “The support meant to protect workers from financial devastation when they lose their jobs is brittle and out of date, and needs to be updated before the next economic crisis. These are not the only policy changes that are needed to protect American workers from economic disruption, but it’s a needed first step to give families the wage security they deserve in this time of high costs and economic uncertainty.”
The Stability and Opportunity for Workers Act establishes a stronger foundation of wage security for workers across America. It enhances the existing Unemployment Insurance system by creating new minimum standards for benefits and extending the duration of benefit availability during economic downturns. It also expands the types of workers covered by regular unemployment insurance and creates a jobseeker’s allowance to ensure no one falls through the cracks, including gig workers.
The proposal also creates a new Transition Wages program that will help workers who have been displaced by AI disruption pursue education and retraining for higher-paying jobs with additional financial security. This proposal builds on and expands Wyden’s previous Unemployment Insurance reform proposal, the Unemployment Insurance Modernization and Recession Readiness Act.
The Stability and Opportunity for Workers Act is co-sponsored by Senate Democratic Leader Chuck Schumer, D-N.Y., and Senators Michael Bennet, D-Colo., and Elizabeth Warren, D-Mass. The bill has been endorsed by the National Employment Law Project, the Economic Security Project Action, and Employ America. Supportive statements for the legislation can be found here.
A one-page summary and section by section of the Stability and Opportunity for Workers Act can be found here. Draft legislative text for the bill can be found here.
Wyden is also releasing the draft legislative text of the data center tax package, which establishes an excise tax on data center operators and removes unnecessary tax breaks for data centers, such as bonus depreciation, opportunity zone benefits and research and development tax credits. Wyden released a white paper discussing these potential changes earlier this summer. A one-page summary and technical description can be found here. Draft legislative text for the bill can be found here.
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