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House Republicans have embedded a provision in the “One Big Beautiful Bill” (H.R. 1), a sprawling budget reconciliation package, that imposes a 10-year moratorium on state and local governments enforcing any laws regulating artificial intelligence (AI), centralizing regulatory authority at the federal level.
This clause, added late to the House Energy and Commerce Committee’s markup, aims to prevent a patchwork of state AI laws, which supporters like the U.S. Chamber of Commerce and some tech giants argue could hinder innovation and global competitiveness against countries like China. Proponents, including lawmakers like Sen. Ted Cruz and Rep. Jay Obernolte, assert that a unified federal framework ensures a “light touch” approach, allowing AI companies to move swiftly without navigating diverse state regulations.
Critics, including over 140 organizations such as Common Sense Media and state lawmakers from both parties, argue that this ban undermines state sovereignty and consumer protections, leaving citizens vulnerable to AI-related harms, including deepfakes, algorithmic discrimination, and privacy violations. They highlight that states like California and Colorado have already enacted laws addressing AI misuse, which would be unenforceable under the moratorium.
The provision’s inclusion as pork legislation—slipped into the budget bill with minimal debate—has sparked outrage, with opponents like Rep. Jan Schakowsky calling it a “giveaway to Big Tech” that prioritizes corporate interests over public safety. Critics also warn that Congress’s inaction on comprehensive AI legislation means the ban could create a regulatory vacuum, as no federal protections are currently in place. The measure’s broad scope, prohibiting enforcement of even existing state laws, is seen as potentially violating the 10th Amendment, raising legal concerns.
Its passage through the House was narrow (215-214), and it faces uncertainty in the Senate due to the Byrd Rule, which may deem it extraneous to budget matters. Tech giants like OpenAI support the moratorium, citing the burden of state-by-state compliance, while critics argue it grants companies unchecked power for a decade, risking unaccountable AI development.
We want to ask you, the reader: do you support a 10-year ban on states’ rights over AI regulation? Answer in our poll below and comment your thoughts on the odd inclusion of the provision in the big bill.
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