American AI Equity & Innovation Act of 2025
A BILL
To promote equitable access to AI research and development funding, support underrepresented innovators, and foster a decentralized national innovation network that ensures America’s AI leadership reflects the diversity of its people.
SECTION 1. SHORT TITLE
This Act may be cited as the “American AI Equity & Innovation Act of 2025.”
SECTION 2. FINDINGS
Congress finds the following:
AI research and commercialization are concentrated within a narrow set of institutions and urban hubs.
Historical disparities in public R&D funding have excluded many innovators, especially from rural, tribal, and economically disadvantaged communities.
A more equitable innovation economy is essential to restoring public trust and maximizing national potential.
SECTION 3. DEFINITIONS
As used in this Act:
Equity-Based Innovation Zone means a designated region eligible for federal R&D support based on income levels, geographic remoteness, or historical underinvestment.
Tech Transfer Accelerator means a public-private program to translate federally funded research into market-ready AI solutions.
Minority AI Innovator means any individual or team from historically marginalized racial, gender, or geographic groups applying for AI-related grants or patents.
SECTION 4. NATIONAL AI EQUITY INNOVATION ZONES
(a) The Secretary of Commerce, in coordination with FACA, shall designate no fewer than 50 Equity-Based Innovation Zones across all U.S. regions.
(b) Each Zone shall receive targeted investments in the following:
AI research grants to local universities and community colleges
AI business incubators and accelerators
Public-private partnerships with startups and nonprofits
SECTION 5. MINORITY & RURAL AI INNOVATOR GRANT FUND
(a) A new grant fund of $1.5 billion annually is hereby authorized to support:
Women, minority, tribal, and rural AI entrepreneurs
Patent application assistance and legal support
Venture capital matching programs for underserved founders
(b) The fund shall be administered with no fewer than 30% of grants reserved for first-time applicants or those without prior federal funding.
SECTION 6. AI TECHNOLOGY TRANSFER & COMMERCIALIZATION
(a) The National Science Foundation (NSF) and Department of Energy (DOE) shall jointly establish Tech Transfer Accelerators in partnership with minority-serving institutions and regional labs.
(b) These accelerators shall focus on:
Translating public research into practical tools
Supporting open-source AI infrastructure
Ensuring accessibility of federally funded algorithms and models
SECTION 7. AI PATENT EQUITY INITIATIVE
(a) The U.S. Patent and Trademark Office shall create a fast-track process for AI-related applications from:
Economically disadvantaged applicants
Institutions in designated Equity Zones
Small-scale developers with no corporate affiliation
(b) Public-interest AI patents may be licensed royalty-free for civic or humanitarian purposes.
SECTION 8. FUNDING
(a) Funding for this Act shall be drawn from allocations under the American Reboot Act of 2025.
(b) No new taxes shall be levied.
(c) Total appropriations for the first five years shall not exceed $7.5 billion.
SECTION 9. RULEMAKING & ACCOUNTABILITY
(a) FACA shall issue implementation rules within 12 months.
(b) Annual equity impact reports shall be submitted to Congress.
(c) Local oversight boards shall be established in each Innovation Zone to ensure transparency and public input.
SECTION 10. SEVERABILITY
If any provision of this Act is held invalid, the remainder shall remain in effect.
