{"id":62163,"date":"2026-05-20T15:38:23","date_gmt":"2026-05-20T19:38:23","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-administration-proposes-90-day-ai-review-as-federal-deficit-hits-2-trillion\/62163\/"},"modified":"2026-05-20T15:38:23","modified_gmt":"2026-05-20T19:38:23","slug":"trump-administration-proposes-90-day-ai-review-as-federal-deficit-hits-2-trillion","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-administration-proposes-90-day-ai-review-as-federal-deficit-hits-2-trillion\/62163\/","title":{"rendered":"Trump Administration Proposes 90-Day AI Review as Federal Deficit Hits $2 Trillion"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>White House AI Framework<\/strong>: The Trump administration has briefed major AI labs on a <strong>voluntary 90-day pre-release review framework<\/strong> for new models to ensure national security.<\/li>\n<li><strong>Fiscal Alarm<\/strong>: The U.S. federal budget deficit is projected to reach <strong>$2 trillion<\/strong> this fiscal year, marking one of the largest shortfalls in American history.<\/li>\n<li><strong>Energy Market Plunge<\/strong>: <strong>Brent Crude futures<\/strong> plummeted <strong>5.63%<\/strong> to settle at <strong>$105.02\/Bbl<\/strong> following aggressive rhetoric regarding oil sanctions and embargoes.<\/li>\n<li><strong>Iran Funding Crisis<\/strong>: House Appropriations Chairman Tom Cole warned that the <strong>Pentagon<\/strong> will likely exhaust funding for operations in <strong>Iran<\/strong> by <strong>August<\/strong> without a new supplemental.<\/li>\n<li><strong>Cuba Policy Shift<\/strong>: President Trump signaled a major shift in Caribbean policy, citing the indictment of former President <strong>Ra\u00fal Castro<\/strong> as a &quot;very big moment&quot; while preparing an announcement on a <strong>Cuba oil embargo<\/strong>.<\/li>\n<\/ul>\n<p>The White House has introduced a new <strong>voluntary pre-release model review framework<\/strong> for leading artificial intelligence firms, including Anthropic and OpenAI. Under the proposed guidelines, labs would be required to share new models with the U.S. government up to <strong>90 days before public release<\/strong>. President Donald Trump is expected to sign an <strong>Executive Order<\/strong> as early as Thursday to formalize this safety review framework, which aims to vet &quot;covered frontier models&quot; for potential cybersecurity and national security risks.<\/p>\n<p>Major stakeholders in the AI sector, including Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>), Alphabet (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>), and Meta (<a href=\"\/stock\/META\">META<\/a>), are closely monitoring the development as the administration balances innovation with security. While the framework is currently described as voluntary, industry analysts suggest it could become a <em>de facto<\/em> standard for companies relying on government contracts or specialized hardware from providers like Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>).<\/p>\n<p>On the fiscal front, <strong>Fox Business<\/strong> reports that the <strong>federal budget deficit<\/strong> is on track to hit <strong>$2 trillion<\/strong> this fiscal year. This projection has sounded alarms across financial markets, as the deficit ranks among the largest in U.S. history relative to GDP. The news comes as Senate Majority Leader John Thune (R-SD) admitted to &quot;a couple of snags&quot; currently delaying a Republican bill intended to fund <strong>immigration enforcement<\/strong>.<\/p>\n<p>Energy markets reacted sharply to the day&#39;s geopolitical developments, with <strong>Brent Crude<\/strong> falling <strong>$6.26<\/strong> to settle at <strong>$105.02 per barrel<\/strong>. The sell-off followed President Trump\u2019s firm stance that <strong>no oil sanctions relief<\/strong> will be granted to <strong>Iran<\/strong> until a formal agreement is signed. Concurrently, the administration is preparing an announcement regarding a <strong>Cuba oil embargo<\/strong>, with Trump claiming the U.S. is &quot;freeing up Cuba&quot; following the indictment of former leader Ra\u00fal Castro.<\/p>\n<p>Legislative tensions are also rising as House Republican leaders delayed a scheduled vote on an <strong>Iran War Powers resolution<\/strong>. The delay follows warnings from Representative Tom Cole that the <strong>Pentagon<\/strong> will run out of money for Iran-related military activities by <strong>August<\/strong>. The rising costs of regional operations have placed additional pressure on energy giants like ExxonMobil (<a href=\"\/stock\/XOM\">XOM<\/a>) and Chevron (<a href=\"\/stock\/CVX\">CVX<\/a>) as they navigate a highly volatile global supply environment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways White House AI Framework: The Trump administration has briefed major AI labs on a voluntary 90-day pre-release review 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