Transparent Automated Governance Act (TAG): Your 2025 Guide

Updated November 15th, 2024

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The Transparent Automated Governance (TAG) Act emphasizes transparency when federal agencies use automated or augmented systems to make critical decisions or interact with the public.
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This legislation mandates that agencies inform the public whenever an automated system influences decisions impacting individuals’ rights, access to services, or benefits. Additionally, the TAG Act requires agencies to offer a structured appeals process for these decisions.

This article explores the TAG Act’s key provisions and its relevance to U.S. federal agencies.

Table of Contents #

  1. What is the Transparent Automated Governance (TAG) Act?
  2. Why is TAG being introduced?
  3. What are the guidelines outlined by the Transparent Automated Governance (TAG) Act?
  4. How is TAG different from other AI-centric legislations?
  5. Bottom line
  6. Transparent Automated Governance (TAG) Act: Related reads

What is the Transparent Automated Governance (TAG) Act? #

The Transparent Automated Governance (TAG) Act is a mandate to “direct agencies to be transparent when using automated and augmented systems to interact with the public or make critical decisions, and for other purposes.” Its aim is to create transparency and accountability in the deployment of artificial intelligence (AI) and related technologies in federal decision-making.

The act applies to automated systems affecting critical decisions, such as those related to employment, education and training, financial services, healthcare, housing, transportation, and essential utilities.

The TAG act requires the Director of Office of Management and Budget (OMB) to issue guidance to agencies on implementing transparency practices when it comes to using AI and other automated systems.

This guidance will include requirements for public disclosures, assessments, and the process of appealing decisions influenced by AI, helping agencies standardize compliance across different federal bodies.

The TAG act also requires the Government Accountability Office (GAO) to report to the Congress on the effectiveness of these efforts, ensuring continued oversight and potential improvements to the framework.

Who is behind the TAG act? #


The Transparent Automated Governance (TAG) Act was introduced by Senator Gary Peters, with support from Senators Mike Braun and James Lankford. The bill, backed by the Senate Homeland Security and Governmental Affairs Committee, underscores a shared commitment to responsible AI governance in federal decision-making.

“This bipartisan bill will ensure taxpayers know when they are interacting with certain federal AI systems and establishes a process for people to get answers about why these systems are making certain decisions.” - Senator Gary Peters

The bipartisan support reflects a growing consensus on the need for transparency and accountability in federal AI systems, highlighting the importance of public trust and ethical governance.

When will the TAG act come into effect? #


The TAG Act was introduced to the Senate on June 7, 2023 and placed on the Senate Legislative Calendar under General Orders on August 22, 2023.

If enacted, the TAG Act would require the Director of the Office of Management and Budget (OMB) to issue guidance within 270 days, and agencies would need to implement this guidance within nine months following its release. This phased approach aims to ensure adequate preparation and compliance by all federal agencies involved.

Why is TAG being introduced? #

“Artificial intelligence is already transforming how federal agencies are serving the public, but the government must be more transparent with the public about when and how they are using these emerging technologies.” - Senator Gary Peters

The TAG Act addresses rising concerns about the use of automated systems in decisions with far-reaching consequences for public services, such as healthcare, financial assistance, and public welfare programs.

As automated decision-making systems become more integrated into public services, the risk of unintentional discrimination or bias increases, potentially impacting individuals’ rights and opportunities.

The TAG Act is designed to protect civil liberties and privacy, build public trust, and ensure that AI-enhanced decision-making aligns with ethical standards.

What are the guidelines outlined by the Transparent Automated Governance (TAG) Act? #

The Transparent Automated Governance (TAG) Act requires federal agencies to make a list of automated systems that may be used in augmented critical decision processes. They should publicly report on their use of automated systems, including the system’s purpose, data sources, and potential impacts.

Agencies must provide explanations in plain language, allowing individuals to understand how and why an automated system was used in a decision-making process. This provision ensures that citizens can easily comprehend the factors influencing decisions made by or with the assistance of AI.

The Act also mandates that agencies establish a process for individuals to appeal or request a review of decisions influenced by automated systems. This provision gives individuals a way to challenge decisions that impact their rights or access to services, ensuring there is a recourse mechanism for those affected.

These provisions aim to protect individual rights, build public trust in federal AI systems, and establish clear accountability standards, ensuring that automated governance aligns with ethical and fair decision-making practices.

How is TAG different from other AI-centric legislations? #

The TAG Act is distinct in that it specifically targets the use of AI and automated decision-making in federal agencies, as opposed to private sector businesses or general-purpose AI laws.

The Act’s focus is on transparency, accountability, and public notification in the federal context, especially when decisions impact citizens’ rights and access to essential services.

The Act also includes requirements for contractors working with federal agencies to develop automated systems. These contractors must ensure that their systems comply with the TAG Act’s requirements for public disclosure, plain language notices, and an accessible appeals process for individuals affected by AI-driven decisions.

Bottom line #

The TAG Act represents a significant step towards transparency and accountability in AI-powered governance at the federal level.

By mandating public disclosure, clear explanations, and avenues for individuals to appeal decisions, the TAG Act aims to build public trust in government systems and promote responsible AI use within federal agencies.

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