Senate negotiators hope to include a number of tech and AI provisions in the year-end defense authorization bill, Ashley and Maria report.

Why it matters: The NDAA, a must-pass bill for lawmakers, is one of the only vehicles available to get policy legislation over the finish line before the end of this Congress.

Driving the news: A manager's package of 93 amendments to the Senate NDAA was released last week.

What's inside: The key amendments on AI are:

• An measure from Senate Majority Leader Chuck Schumer which would establish an "Artificial Intelligence-Enabled Weapon Systems Center of Excellence," to be developed by the secretary of Defense.
• The Senate Intel Committee's Intelligence Authorization Act, which features provisions to establish an Artificial Intelligence Security Center at the National Security Agency and for the president to develop procedures on "national security procedures to address certain risks and threats relating to AI."
• A requirement for the president to make it easier for AI vendors and independent researchers to notify the government of risks, for example a foreign actor developing malicious software.

For quantum, the package includes a call for Australia, the U.K. and the U.S. to leverage their security partnership — AUKUS — to cooperate on quantum and counter China.

• Unlike the House, the Senate's NDAA still does not include the Defense Quantum Acceleration Act, which would encourage the near-term adoption of the technology.
• Industry is continuing to push for that legislation in the final NDAA.

The CHIP Equip Act is also included.

• The bill would make chip equipment that comes from a foreign adversary ineligible for federal funds.
• If the equipment isn't produced in the U.S. or by an ally in sufficient amounts or in good enough quality, then a waiver could be obtained.
• Reps. Frank Lucas and Zoe Lofgren and Sens. Mark Kelly and Marsha Blackburn are behind the bipartisan measure.

What we're watching: As our Axios Pro Energy colleague Nick Sobczyk reports, senators don't plan to take up their version of the NDAA on the floor.

• They'll use their amendments to negotiate with the House on a final defense policy bill.
• That means inclusion in the manager's package does not guarantee final passage, but it does indicate a certain level of support.

We interviewed House Speaker Mike Johnson last week about his hands-off plans for AI, but left a few interesting things on the cutting room floor.

Here's some additional quotes from our talk with Johnson that we thought Pros should know.

On the NDAA:

• "In the House version of the NDAA, we incorporated some AI provisions. It's probably not as extensive as the Senate envisions, but I was not a huge fan of the early work that was coming out of the Senate on AI."
• "I mean, I just think it'd be an overstep. So there'll be a negotiation at the end of as there always is on these provisions. But I think overall, you'll see a resistance, at least among the House Republican majority, to go too far."

On R&D funding:

• "If you're talking about the more efficient and effective allocation of resources, of course we want to do that."
• "We don't need to be throwing billions of dollars at this, but a reasonable amount to help spur along the research as it may well indeed be helpful."
• "We don't want government to take over or usurp the role of research in that, but we want to spur on the private sector, and to the extent there are grants that can assist with that, maybe that is appropriate."

On his "guiding principle" for tech policy:

• "I think our European allies have tied themselves in a knot in terms of keeping pace with China, and now they're looking to us."
• "America should lead this innovation. We don't want government to get in the way of that. I mean, that's sort of, you know, my guiding principle."

🗣 60 Minutes: FTC chair Lina Khan defended her agency's aggressive antitrust record in an interview on "60 Minutes" last night, and said she'd be honored to work in a Harris administration, Ashley reported.

🔦 State spotlight: At least 26 states have passed or are considering bills regulating the use of generative AI in election-related communications, an analysis by Axios shows.

✒️ AI in CA: California Gov. Gavin Newsom last week signed two bills that will protect performers from having their likeness simulated by AI digital replicas, per The Verge.

• What's next: Newsom has until Sept. 30 to sign or veto SB 1047, a bill regulating AI.

🌍 AI & the environment: The U.N. Environment Programme published a briefing on AI's environmental problem and how the tech could be rolled out sustainably.

• ITI also released a new report this morning on AI's role in the energy transition.

Take a look at the hearings we're watching in this last week before recess.

1. Foreign relations: Tomorrow at 10am ET, the Senate Foreign Relations panel that focuses on international cybersecurity meets for a hearing on "cyberspace under threat in the era of rising authoritarianism and global competition."

• Witnesses include Open Technology Fund's Laura Cunningham, UC Irvine's David Kaye and Jamil Jaffer of the National Security Institute at the George Mason's Scalia Law School.

2. Science markup: House Science marks up legislation on Wednesday at 10am ET, most notably the AI Incident Reporting and Security Enhancement Act and the Department of Energy Artificial Intelligence Act.

3. AI workforce: The Senate HELP Subcommittee on Employment and Workplace Safety gathers Wednesday at 2pm ET for a hearing examining how to prepare workers for AI.