The biggest concern is identifying "who". If the US government says only US citizens can access a model, how do they enforce that. Anthropic and OpenAI will use Persona (a company funded by Peter Thiel) to verify user identity. Verifying your identity with a government ID and linking that to AI is the dream of a surveillance state. Agents running on your computer, accessing your internet accounts, access to your personal conversations with AI, and accessible by the government is just wild.

I'm hoping this is a call to action for local AI.

No, not really. The biggest concern is the US government claiming it can decide who gets to use a product and brazenly kneecapping competitive companies who do such things as "write contracts and comply with them."