House Progressives Throw Down a Marker: No AI Bailouts A new resolution demands that Congress withhold support for AI companies that bankrupt themselves and instead respond to any future recession by supporting ordinary people. [...] Both Anthropic and its partners are now reliant on each other. If Anthropic cannot repay its debts, or Google’s AI ambitions outpace Anthropic’s and it cuts its rival off, or any number of other possibilities in the 94 pages of risk factors listed in the prospectus come to pass, all these counterparties will feel the pain. These kinds of tight connections are precisely what crumbled the housing finance system when the bubble collapsed in 2008. It’s these kinds of concerns that have led the Congressional Progressive Caucus to write a new House resolution, obtained exclusively by the /Prospect/, demanding that Congress “refuse to provide any additional funds or exceptional regulatory support to companies or financial institutions facing insolvency or financial collapse due to exposures to acute stress within the artificial intelligence market.” The text of the seven-page resolution recounts the history of the financial crisis, the lack of prison time for those whose illegal actions caused it, and the congressional bailout delivered to big banks instead of workers or homeowners. The resolution attempts to commit Congress to not make the same mistakes again. [...] The resolution advises that any bankruptcy of an AI company or affected bank should go through the current bankruptcy processes reserved for those businesses, in ways that support workers, consumers, and pension and retirement fund holders. It states that senior executives liable for excessive risk-taking or any other unlawful action “should be held fully accountable under civil and criminal law,” with disgorgement of ill-gotten gains. It says that the government should take action, but bail out workers instead of executives through fiscal stimulus, job creation, and retirement fund backstops. It suggests automatic stabilizers to prepare for this possibility, so that workers and consumers are protected with immediate benefits if an economic collapse commences. And it proposes a “reform agenda to prevent future speculative bubbles.” https://prospect.org/2026/10/28/house-progressives-ai-bailout-anthropic-goog...