This week’s technology policy landscape reflects the steady convergence of national security, infrastructure, and innovation priorities that are shaping the agenda in Washington. From congressional hearings on cyber defense, energy infrastructure, and space-based weather systems to broader debates over artificial intelligence leadership, youth impacts, and long-term competitiveness, policymakers are continuing to grapple with how emerging technologies intersect with economic resilience and public safety. Alongside these developments, courts and regulators at home and abroad are testing how existing legal frameworks apply to rapidly evolving technologies.

In this week’s Nimitz Tech:

• Student Phone Bans Expand: New Jersey joined a growing list of states adopting bell-to-bell bans on student cellphone use, reflecting bipartisan momentum to limit digital distractions in public schools.

• Off-Grid Power and Data Centers: A new Senate proposal would exempt fully off-grid data center power systems from federal energy regulation, reviving debates over grid cost-shifting, utility revenues, and infrastructure responsibility.

• EU Tech Enforcement and U.S. Retaliation: Brussels is preparing to step up enforcement of its digital regulations in 2026, setting the stage for heightened trade and policy tensions as Washington threatens retaliation.

WHO’S HAVING EVENTS THIS WEEK?

Tuesday, January 13th

• House Energy and Commerce: “Protecting America’s Energy Infrastructure in Today’s Cyber and Physical Threat Landscape” at 10:15am. Watch here.

• House Homeland Security: “Defense through Offense: Examining U.S. Cyber Capabilities to Deter and Disrupt Malign Foreign Activity Targeting the Homeland” at 10:00am. Watch here.

• House Science, Space, and Technology: “From Orbit to Operations: How Weather Satellites Support the National Security Mission” at 10:00am. Watch here.

• House Ways and Means: “Maintaining American Innovation and Technology Leadership” at 2:00pm. Watch here.

Wednesday, January 14th

• House Foreign Affairs: “Winning the AI Arms Race Against the Chinese Communist Party” at 10:00am. Watch here.

• House Science, Space, and Technology: “Advancing America's AI Action Plan” at 10:00am. Watch here.

• House Education adn Workforce: “Building an AI-Ready America” at 10:15am. Watch here.

Thursday, January 15th

• Senate Commerce, Science, and Transportation: “Hearings to Examine the Impact of Technology on America's Youth” at 10:00am. Watch here.

TECH NEWS DRIVING THE WEEK

In Washington

• As the Trump administration promotes a renewed push for nuclear energy, companies developing small modular reactors are gaining momentum with federal funding, political backing, and growing interest from technology firms seeking reliable power for energy-intensive uses such as artificial intelligence. Firms like Kairos Power are advancing new reactor designs that aim to reduce costs and construction timelines through smaller, factory-built components and alternative cooling systems, supported by significant Energy Department grants and loan guarantees. Despite rising optimism and bipartisan enthusiasm, the industry faces longstanding challenges including high costs, construction delays, regulatory scrutiny, fuel supply constraints, and skepticism from experts who point to past failures and unresolved safety concerns. Whether this new wave of reactors can deliver on promises of affordability, scalability, and reliability remains uncertain, and continued political and financial support may hinge on the industry’s ability to demonstrate tangible progress.

• Sen. Tom Cotton introduced legislation that would exempt fully off-grid power suppliers serving large energy users, such as data centers and manufacturers, from oversight by the Federal Energy Regulatory Commission and the Department of Energy. The bill would allow the creation of “consumer-regulated electric utilities” that provide power to new, energy-intensive loads as long as both the utility and its customer remain physically isolated from the bulk power grid and do not rely on it for backup service. These entities would be exempt from federal rules governing rates, reliability, and transmission planning, though they would still be subject to environmental, zoning, and permitting requirements, and the exemptions would end if they later connect to the grid. Supporters argue the proposal would prevent data centers from shifting costs and reliability risks onto other consumers, while critics warn it could threaten utility revenue models and, if widely adopted, shift fixed grid costs onto residential and small business customers.

National

• As 2026 begins, courts across the United States are confronting a growing wave of high-stakes litigation testing how decades-old laws apply to modern technologies, including artificial intelligence, pricing algorithms, digital privacy tools, and social media platforms. Reuters analysis highlights lawsuits challenging AI-driven rent and price-setting software under antitrust law, disputes over whether copyrighted materials can be used to train AI models under fair use doctrines, and cases applying legacy privacy statutes like California’s wiretapping law to contemporary online tracking technologies. Judges are also weighing massive potential damages tied to digital violations, as well as sprawling litigation accusing social media and video game companies of fostering addiction and harming minors. Together, these cases position the judiciary as a central arena for defining the legal boundaries of the digital economy, often in the absence of updated legislation.

• New Jersey enacted a statewide ban on student cellphone use in public schools, with Gov. Phil Murphy signing the legislation as one of his final acts in office. The law, which takes effect in the 2026–27 school year, requires local school boards to adopt rules prohibiting the use of cellphones and other internet-enabled devices throughout the school day, a so-called “bell-to-bell” restriction aimed at reducing classroom distractions from social media, gaming, and messaging. The measure passed with broad bipartisan support after Murphy first endorsed phone-free schools in his State of the State address, aligning New Jersey with a growing national trend as roughly three dozen states pursue similar restrictions. Supporters cite evidence from educators, students, and public opinion surveys showing strong backing for limiting phone use during class, with early adopters reporting calmer classrooms and improved focus.

International

• The European Union is preparing to intensify enforcement of its major digital regulations in 2026, including the Digital Markets Act and Digital Services Act, with additional pressure from the AI Act’s upcoming enforceability and expanding scrutiny into areas like cloud services. The article frames a rising transatlantic dispute as the Trump administration characterizes EU enforcement against large U.S. platforms as discriminatory and signals potential retaliation using trade tools such as Section 301 investigations and tariffs. It outlines how EU officials argue the rules apply based on market thresholds rather than nationality and are aimed at competition, transparency, and online safety, while U.S. critics portray the regime as protectionist and as effectively compelling speech controls. The piece also notes how compliance obligations, enforcement actions, and the possibility of retaliatory trade measures could create uncertainty for cross-border business, complicate broader geopolitical coordination, and set 2026 up as a pivotal year for EU-U.S. tech relations.

• British regulators launched a formal investigation into X, the social media platform owned by Elon Musk, over the spread of illegal sexualized images generated by its AI chatbot Grok. Ofcom said it is examining whether X violated U.K. law designed to prevent the dissemination of priority illegal content, including nonconsensual intimate images and child sexual abuse material, after Grok publicly generated manipulated sexual images of real people, including children, in response to user prompts. The regulator described the matter as a top priority and said potential penalties could include fines of up to 10 percent of X’s global revenue, court orders restricting payment providers or advertisers, or, in extreme cases, blocking access to the platform in the U.K. The investigation comes amid mounting international scrutiny, declining advertising revenue, and growing criticism of X’s content moderation practices, with several countries already banning Grok and others reviewing the platform’s compliance with local laws.

Just for Fun

Politics and Prose is hosting Bruce Goldfarb, a writer and historian known for his work on American history, on Jan. 16th for a discussion of his latest work: Bruce Goldfarb — The Worst Day: A Plane Crash, A Train Wreck, and Remarkable Acts of Heroism in Washington, DC - with Bryan Sears.

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