Bureau of Industry and Security targets end of fiscal year for formal rescission of AI diffusion rule

The Bureau of Industry and Security is aiming to formally rescind and replace the Biden-era AI diffusion rule before the end of the fiscal year, according to a recently released summary of the agency's 2026 regulatory plan. Export Compliance Daily reported on July 8, 2026, that the summary says BIS plans to publish a number of proposed and final rules to amend the Export Administration Regulations in FY 2026, which ends Sept. 30. That includes an interim final rule to formally rescind the AI diffusion rule, which BIS has already stopped enforcing. The interim final rule will also establish a new, streamlined framework to enable the secure spread of U.S. technology around the globe consistent with U.S. national security and foreign policy objectives. The latest BIS regulatory agenda says the agency is hoping to publish the rule this month. A BIS spokesperson did not respond to a request for comment.