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Issue #022 · May 26, 2026

Veto in the West Wing

Washington pulled its only safety lever, Menlo Park installed keystroke loggers on the workers it was about to fire, and Mexico turned face scans into the price of a working phone.

OVERRIDE

Trump Pulls AI Safety Executive Order Hours Before Signing, After Silicon Valley Pushback

President Donald Trump canceled the signing of a landmark executive order on artificial intelligence on May 21, hours before the planned White House ceremony, after telling reporters he was worried the measure could dull America's edge on AI. The order would have established the first federal framework for the government to vet the national-security risks of the most advanced AI systems before their public release. (Source: NBC News)

The reversal came after former White House AI and crypto czar David Sacks raised industry concerns directly with Trump. The draft had charged administration officials with building a process for the government to access and evaluate yet-to-be-released models in coordination with leading AI companies — exactly the kind of pre-deployment red-teaming that safety researchers and a bipartisan group of lawmakers have called the minimum baseline of AI governance. (Source: Prism News)

"We're leading China, we're leading everybody, and I don't want to do anything that's going to get in the way of that lead," Trump told reporters.

The cancellation leaves the United States without any federal pre-release safety testing regime at exactly the moment the EU AI Act's high-risk system provisions take effect on August 2, and as state laws in Colorado, Texas, and California begin enforcement. (Source: NPR)

STACK_OVERFLOW

Meta Cuts 8,000 Jobs While Defending Keystroke-Tracking Software That Trains AI on Workers

Meta began notifying 8,000 employees of their termination on May 20, cutting roughly 10 percent of its 78,000-person workforce and canceling 6,000 open positions in the same week. The layoffs were paired with a $145 billion AI capital plan and the migration of 7,000 surviving employees into AI-focused divisions. (Source: NPR)

The cuts followed the rollout of an internal program Meta calls the Model Capability Initiative — MCI — which the company installed on U.S. employee laptops in April. The software tracks mouse movements, keystrokes, and takes periodic screen captures, then feeds the data to AI systems being trained to replicate how those employees perform their jobs. There is no opt-out. Mark Zuckerberg defended the program on May 25 after more than 1,000 employees signed an internal petition against it and U.K. staff opened a formal union drive. (Source: TechTimes)

Employees who volunteered for the new AI teams before notifications went out were, according to multiple reports, excluded from the cut — turning MCI into a documented quid-pro-quo: hand over your work patterns to the model that replaces you, keep your job a little longer. Zuckerberg promised no more company-wide cuts in 2026, but the precedent — train your replacement under surveillance, then exit — is now operational at one of the largest employers in U.S. tech. (Source: Quartz)

ACCESS_DENIED

Mexico to Cut Off Mobile Service to Anyone Who Refuses Iris, Fingerprint, and Face Scans by July 1

Mexico is rolling out a national biometric ID system, built on an expanded version of the population registry known as the Clave Única de Registro de Población (CURP), that will require every mobile phone user in the country to register their face, all 10 fingerprints, both irises, and a digital signature by July 1. Phone numbers — prepaid, postpaid, physical SIM, or eSIM — that aren't linked to a registered CURP will be suspended. (Source: OECD.AI)

The biometric database feeds into a Unified Identity Platform that connects the population registry to forensic databases and to data already held by prosecutors, the National Guard, and intelligence agencies, enabling real-time identity searches against the full corpus. The framework includes no requirement to notify a person when their record is queried. (Source: ID Tech Wire)

Mexico's Supreme Court struck down a previous biometric SIM-registration law in 2022 on constitutional privacy grounds, citing the same data-breach history that civil liberties groups are pointing to now. The current rollout proceeds anyway, with mid-year disconnection as the enforcement mechanism — turning access to a phone, and by extension to banking, employment, and emergency services, into a biometric checkpoint. (Source: MobileIDWorld)

Stack Trace

A contractor for the U.S. Cybersecurity and Infrastructure Security Agency (CISA), employed by Dulles, Va.-based Nightwing, kept a public GitHub repository named Private-CISA online for six months. GitGuardian researcher Guillaume Valadon discovered it on May 14 and called it "the worst leak that I've witnessed in my career." Inside the 844 MB: plaintext passwords, AWS GovCloud admin tokens, Entra ID SAML certificates, and a file literally named importantAWStokens. The agency tasked with defending federal cyber infrastructure left its own digital keys under the welcome mat — and it took an outside researcher 26 hours to get the repo pulled. (Source: Krebs on Security; GitGuardian)

The Pentagon awarded classified-network AI contracts on May 1 to eight companies — OpenAI, Google, Microsoft, Nvidia, Amazon Web Services, Oracle, SpaceX, and Reflection — while leaving Anthropic out under a formal supply-chain-risk designation. Anthropic had been the sole AI vendor on DoD classified networks until it refused to permit Claude's use "for all lawful purposes," which the company said would cover autonomous weapons and domestic mass surveillance. A California federal judge blocked the blacklist in late March; a D.C. appeals court let it stand on April 8 anyway. The contracts went out under the unblocked version. (Source: CNN Business)

Source: CNN Business

General Dynamics deployed roughly two dozen new AI surveillance towers along the San Diego stretch of the U.S.-Mexico border in early May, running PureTech Systems software on 120- and 180-foot masts that monitor 6-10 miles of terrain over 5G and Starlink. Border Patrol plans 1,500 more in the next few years. The expansion lands despite 2024 internal memos showing 30% of existing towers were broken at any given time, and EFF investigator Dave Maass calling the program "extremely expensive theater" that has not measurably reduced crossings. (Source: AZ Family)

Source: AZ Family

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