The AI Foundation Model Transparency Act of 2026 requires covered entities using artificial intelligence (AI) foundation models to improve transparency by disclosing detailed information before deployment. This includes training data, data collection during operations, and the model's intended purposes and limitations. Small businesses and new businesses receive assistance with compliance, and open-source models are exempt. The Federal Trade Commission enforces the regulations, with violations treated as unfair or deceptive acts. The Commission must assess and update the regulations annually and submit a report on the regulations' establishment, implementation, and enforcement. The Act aims to ensure transparency and accountability for AI foundation models.