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The Federal Budget: Spending, Taxes, and Debt

Hidden Funding:“Algorithmic Justice” for Artificial Intelligence

The Federal Budget: Spending, Taxes, and Debt Policy Rapid Response BlogMarch 4, 2024 By Paul Winfree, Ph.D.

This weekend, Congress released the text of the latest spending bill – a six-part package including funding for half of the long-overdue fiscal year (FY) 2024 appropriations bill.

Buried in the 1,050-page text is an “anomaly” added by the Biden Administration that would allow $337 million to be reprogrammed away from broadband and toward new activities. This reprogramming is not merely a technical change in appropriations; it could have severe repercussions for both the future of artificial intelligence (AI) and for combatting the rise of woke government regulation.

The NTIA Anomaly

Section 542 of the minibus is a new provision that allows the
U.S. Department of Commerce to transfer existing appropriations. Specifically, this provision allows for 0.7% of funding from the Infrastructure Investment and Jobs Act (IIJA) to be reprogrammed to instead provide for administrative funding for broadband programs under the National Telecommunications and Information Administration (NTIA). That amounts to $337.5 million in new funding.

To put this into context, the entire FY 2024 budget request for NTIA salaries and expenses was only $172 million. That means the reprogrammed (and therefore new to NTIA) funding is nearly two times the amount that the agency normally requires for salaries and expenses – on top of the NTIA salaries and expenses funding already built into the underlying bill.

Any such major reprogramming should be carefully examined by Congress in execution of its Article I power. This is not a negligible amount of taxpayer dollars being shifted in a typical anomaly or technical change.

But why might they need this additional funding?

Redirecting Funds to a New Use

The IIJA authorized four broadband programs, each with up to 2% allocated for administrative funding. The largest of these programs, the Broadband Equity Access and Deployment (BEAD) program received $849 million, whereas the other three programs have much lower total funding and thus lower administrative funding. NTIA is requesting the reprogramming from BEAD program funding to pay for an increase in NTIA’s salaries and expenses. 

However, even a very generous increase in funding to 5% for each existing program cannot explain the need for additional money.  An increase in administrative funding to 5% of the budgets for existing programs would be $203 million (see table). This is $134 million less than the requested amount. 

IIJA Programs Total Funding Current Admin Funding Admin Funding at 5% Increase from Already Received
Middle Mile $1,000,000,000 $20,000,000 $50,000,000 $30,000,000
Tribal Broadband Connectivity Program $3,000,000,000 $60,000,000 $150,000,000 $90,000,000
Digital Equity $2,750,000,000 $55,000,000 $137,500,000 $82,500,000
Total $6,750,000,000 $135,000,000 $337,500,000 $202,500,000

Reprogramming of administrative funding at this level would free existing resources. This would allow NTIA to fund additional initiatives,  such as the regulation of artificial intelligence (AI) as directed by President Biden in October 2023.

Algorithmic Justice: Biden’s AI Executive Order

President Biden issued Executive Order 14110, the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” on October 30, 2023.

 

From EO 14110 has arisen the prevalence of “algorithmic justice” within AI regulation. This may be related to a key Biden AI advisor on the EO, a “digital activist” who heads up the Algorithmic Justice League.

Algorithmic justice purportedly aims to remove bias from AI and related technologies, but as we have seen with Google’s Gemini, there are serious pitfalls here.

With AI being a primary research and data generation tool of the future, accuracy (both historical and factual) are key. Unfortunately, over-wrought attempts to erase bias in AI fall flat – there is no erasing bias from history and doing so undermines the serious nature of the past’s heinous discrimination.

Now, this funding reprogramming for NTIA could be used to implement algorithmic justice on a massive scale, making it the new standard for all AI in the United States. The Biden Administration is rewriting (or, recoding) reality on the taxpayer’s dime.

Congressional Countermeasures

At the time of this piece’s writing, Congress has not yet voted on the appropriations package in question. They still have time to strip the anomaly from the bill.

It is well within Congressional rights to reject this, or any, anomaly request sent up by the Office of Management and Budget. Congress could simply offer and accept an amendment stripping Section 542 from the bill. It could also add in limitation language prohibiting taxpayer funding for any algorithmic justice plans the Biden Administration has up its sleeve.

In this instance, rejecting the anomaly would protect the integrity of artificial intelligence and prevent a further systemization of woke ideology from being integrated into every aspect of Americans’ lives.

Author

Paul Winfree, Ph.D.

Paul Winfree, Ph.D.

President & CEO

Paul Winfree, Ph.D., is the President and CEO of the Economic Policy Innovation Center (EPIC). He has served in top management and policy roles in the White House, the U.S. Senate, and think tanks. Prior to founding EPIC, Winfree served in multiple positions during three different tours at The Heritage Foundation. These included Distinguished Fellow in Economic Policy and Public Leadership, Director of Economic Policy Studies the Richard F. Aster Fellow, and acting Director of the Center for Data Analysis. Before rejoining Heritage in 2018, Winfree was Deputy Assistant to the President for Domestic Policy, the Deputy Director of the Domestic Policy Council, and the Director of Budget Policy, all at the White House. Winfree was also Chair of the Deputies Committee that oversaw the execution of all domestic policy at the Deputy Secretary level throughout the administration as well as the interagency policy coordination process. During the 2016 Presidential Transition, Winfree led the team responsible for the Office of Management and Budget. Winfree served three terms as Chair of the Fulbright Foreign Scholarship Board , a 12-member board selected by the President of the United States. In 2022, he received a distinguished service award from the U.S. State Department’s Bureau of Education and Culture Affairs for his “stewardship during the COVID-19 pandemic, and for meaningful contributions to advance mutual understanding through the Fulbright Program.” Winfree’s research focuses on U.S. economic history, public finance, political economy, the economics of media, and the economics of education. He is author of a book on the evolution of economic and fiscal policy from colonial America until the present called The History (and Future) of the Budget Process in the United States: Budget by Fire (Palgrave Macmillan, 2019). His research has been featured in The Wall Street Journal , The New York Times , The Washington Post , Investor’s Business Daily , USA Today , and Congressional Quarterly , among other publications. Winfree holds a Ph.D. in economics from Queen’s University Belfast, an M.Sc. in economics and economic history from the London School of Economics and Political Science, and a B.S. in economics from George Mason University. He lives in Virginia with his wife and three children.

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