House Republicans Seek Decade-Long Ban on State AI Regulations, Sparking Nationwide Debate

House Republicans Push to Block State AI Regulations for a Decade

House Republicans have introduced a provision in their major tax bill that would prevent states and local governments from regulating artificial intelligence (AI) for the next ten years. This move is a significant win for the AI industry, which favors a uniform, light-touch federal framework as the technology advances.

The clause was quietly included in the markup process by the House Energy and Commerce Committee. Its scope is broad, potentially barring all state regulations on AI models, systems, and automated decision-making tools—covering applications from popular chatbots like ChatGPT to systems used in hiring and housing decisions.

Senate Hurdles Ahead

Despite its ambition, this provision faces an uphill battle in the Senate. Procedural rules like the Byrd Rule, which limits budget reconciliation bills to budget-related matters, may exclude this policy change from the final legislation. Senator John Cornyn (R-Texas) expressed skepticism about its chances, noting it appears more like a policy shift than a budgetary item.

Many senators recognize the importance of regulating AI but are divided on how to proceed. While there is bipartisan interest and several proposed bills, few have made progress in the current Congress. One exception is a bipartisan bill targeting the distribution of intimate “revenge porn” images, including those generated by AI, which is expected to be signed into law soon.

Arguments for Federal Leadership on AI

Proponents of the federal ban argue that AI technology does not respect state borders, making a patchwork of regulations impractical. Senator Bernie Moreno (R-Ohio) emphasized that interstate commerce falls under federal jurisdiction, and a uniform approach is necessary to avoid conflicting state laws. However, even Moreno doubts the provision will survive Senate rules.

The bill’s language explicitly prohibits states and political subdivisions from enforcing any AI-related laws or regulations. This restriction would cover AI use in various sectors, including business, research, education, and public utilities.

State Opposition and Concerns

State officials and some lawmakers have strongly opposed the federal ban. California State Senator Scott Wiener called the proposal “truly gross,” criticizing Congress for blocking states from acting while failing to regulate AI effectively at the federal level. Wiener previously authored a bill aiming to establish safety measures for advanced AI models, which was vetoed by Governor Gavin Newsom.

A coalition of state attorneys general also sent a letter opposing the ban. South Carolina Attorney General Alan Wilson (R) warned that the federal approach risks creating a one-size-fits-all mandate without clear direction, undermining states’ efforts to protect their citizens from AI’s risks.

Industry Voices Favor Uniform Federal Rules

AI companies continue to lobby for a single, light-touch regulatory framework. Sam Altman, CEO of OpenAI (creator of ChatGPT), testified recently that a patchwork of state regulations would hinder innovation and the ability to respond quickly to technological advances. Altman supported a federal framework that provides clarity and flexibility.

Senator Ted Cruz proposed a 10-year “learning period” during which states would be preempted from issuing comprehensive AI regulations—a concept Altman tentatively endorsed as long as it involved a single federal approach.

Microsoft’s president, Brad Smith, echoed the support for federal leadership, comparing it to early internet regulation that enabled the sector’s growth. He highlighted the need for detailed federal guidelines around product safety and pre-release reviews to help the industry develop responsibly.

Challenges Ahead for Congressional Action

While about ten Republican senators favor a national AI framework, bipartisan cooperation remains uncertain. Senator Mike Rounds (R-South Dakota) acknowledged the risk of inconsistent state laws creating regulatory chaos but also indicated that crafting a filibuster-proof federal solution will be difficult.

As Congress debates AI regulation, state governments, federal lawmakers, and industry leaders continue to grapple with balancing innovation, safety, and jurisdictional authority.

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