Penalties in the AI Kill Switch Act

Two ceilings, not two automatic fines

Subsection (d)(2) says the Secretary “may assess” a penalty of “not more than” the daily amount. The $2,000,000 figure applies to a violation of the section generally, which includes failing to maintain the required capability and failing to report a covered incident within 15 days. The $20,000,000 figure applies when the violation is of subsection (c), the emergency-authority subsection. That subsection includes carrying out the order, preserving weights and telemetry, notifying users where practicable, and confirming compliance. U.S. Government Publishing Office via Congress.gov

Reporting sometimes shortens this to “$2 million a day for lacking a kill switch” and “$20 million a day for defying a shutdown order.” That is a fair description of the two ceilings. It is not a schedule that applies itself.

What the Secretary would have to weigh

• The nature, circumstances, extent, gravity, and duration of the violation.
• The company’s degree of culpability.
• Any previous violations of the section.
• Good-faith efforts to comply.
• Whether the company voluntarily disclosed the violation.
• Any other factor that justice may require.

Notice, hearing, and the Justice Department

A penalty requires reasonable notice and an opportunity for a hearing. The Secretary may also ask the Attorney General to sue in federal district court if a violation has occurred, is occurring, or is about to occur. The introduced text does not create a crime.

A 30-day cure for small misses

A de minimis violation, or a technical defect, that is corrected within 30 days after discovery is not a violation of the section. The bill does not define “de minimis” further.

These penalties do not exist yet

As of September 24, 2026, H.R. 9917 is not law, so no company can be fined under it. A Cloud Security Alliance summary repeats the same two ceilings; it is describing the bill, not an enforcement action. Cloud Security Alliance