The Sectoral AI Governance Act of 2026 aims to enhance federal oversight of algorithmic decision-making systems used by government agencies, ensuring these technologies do not lead to violations of federal laws. As reliance on artificial intelligence in decision-making grows, the Act seeks to hold agencies accountable for their use of such systems, promoting better governance and legal compliance. Key provisions of the Act empower agency heads to issue rules regarding algorithmic systems that may contribute to legal violations.