Ruben Gallego, the first-term senator from Arizona, on Wednesday rolled out a comprehensive policy package intended to address how artificial intelligence is reshaping the labor market and the workforce. He framed the proposals as part of a Democratic governing agenda to pursue if the party regains control of Washington.
In an interview with Semafor, Gallego said voters need to hear what Democrats would do in power, noting many workers feel their effort is not paying off. He argued it is important for the party to have a forward-leaning policy on AI and the workforce as the technology becomes more prevalent.
Key proposals and specifics
The agenda spans multiple areas of the economy, focusing on worker pay and protections as well as measures aimed at the AI and data industries. Major elements include:
- Raising the federal minimum wage to $20 per hour and indexing it to inflation.
- Promoting sectoral bargaining agreements to set labor standards across whole industries.
- Requiring companies to provide paid leave.
- Increasing overtime pay for eligible workers from time-and-a-half to double pay.
For the AI industry, Gallego proposes:
- A 10 percent excise tax on data center revenues and ending tax incentives for such projects.
- A so-called "robot tax" to discourage job losses from automation.
- Considering taxation of AI tokens.
He would direct revenue from these measures toward a New Deal–style federal public works program intended to prevent "massive unemployment" as the economy adapts to AI. Gallego said data centers and AI companies should not operate without consideration of their effects on labor markets and communities and should be part of the solution.
Worker classification and layoffs
The plan also prioritizes reclassifying certain gig workers from independent contractors to employees and would require firms to give workers more advance notice in cases of mass layoffs.
Legislative strategy and reconciliation
Gallego signaled readiness to use Democratic procedural tools aggressively: he proposed packaging as much of his agenda as possible into a budget reconciliation bill that Democrats could pass with a simple majority if they control the House, Senate, and White House by 2029. He said Democrats should be willing to push the limits of reconciliation and to challenge the Senate parliamentarian if necessary, arguing Republicans have already weakened the parliamentarian’s primacy.
Political context
Gallego’s package is among several ambitious proposals emerging from a younger cohort of Democrats as the party prepares for 2028. Senators Chris Van Hollen and Cory Booker have offered tax-related ideas, and Sen. Andy Kim has proposed universal health coverage for children, illustrating a broader debate over the party’s future agenda.
Former President Barack Obama has also urged Democrats to focus on AI as they develop policy priorities.
Gallego did not commit to a 2028 presidential bid. He acknowledged that his policy work fuels speculation about a possible campaign but said he has not made a decision and will discuss family considerations, including child-rearing, with his wife. He added that whatever happens, he expects to remain involved in policy debates after the 2028 cycle.
Gallego’s proposals are likely to provoke debate over how the benefits and burdens of AI should be distributed and what role the federal government should play in protecting jobs and funding transitions.
