State Lawmakers Unite Against Federal Plan to Block Local AI Regulation

State Lawmakers Oppose Federal Limits on AI Regulation

Over 260 state legislators from all 50 states have united to oppose a federal provision that would block state and local governments from regulating artificial intelligence (AI) for a decade. The provision is part of the federal budget reconciliation bill currently moving through Congress and could significantly restrict states’ ability to address AI-related risks.

The lawmakers argue that a 10-year moratorium on AI regulation would prevent states from protecting their residents against issues like deepfake scams, algorithmic bias, and job displacement. They emphasize the urgency of maintaining state-level authority to respond quickly to AI challenges as technology advances.

Why States Are Pushing Back

Supporters of the federal provision say it’s meant to avoid a patchwork of conflicting state regulations that could hurt U.S. tech companies’ competitiveness, especially against China. However, state legislators counter that this approach would limit their ability to address local concerns and innovate policy solutions.

In a letter to Congress, state lawmakers highlighted their ongoing work on AI laws that increase transparency, regulate government use of AI, protect healthcare patients, and defend creators. They warn that the federal moratorium would also block existing state laws addressing digital challenges.

• South Carolina Rep. Brandon Guffey (R) and South Dakota Sen. Liz Larson (D) lead the bipartisan push for preserving state regulatory power.
• The letter stresses that state policymakers are essential for responding to AI’s societal impacts in real time.
• The moratorium is viewed as an overreach that freezes policy innovation when experimentation is most needed.

Broader Opposition and Concerns

The opposition extends beyond state legislators. Dozens of state attorneys general called the provision “irresponsible” and destructive. The National Association of State Chief Information Officers also expressed concern about the impact on states’ AI regulatory efforts.

Several states, including California, Colorado, and Utah, have passed substantial AI laws targeting commercial uses, while many others have introduced more limited measures. Numerous governors have formed AI task forces to develop best practices, highlighting states’ proactive roles.

Political and Procedural Issues

Some politicians have expressed surprise and frustration over the provision. For example, Rep. Marjorie Taylor-Greene (R-GA) said she was unaware of the AI regulation ban when she voted for the bill. She criticized it as a violation of state rights and stated she would have opposed it if informed.

Additionally, the provision faces scrutiny under Senate rules that limit including unrelated measures in budget bills. This may affect its fate in the Senate.

The Federal vs. State Regulation Debate

The dispute highlights a fundamental tension between creating a unified national AI policy and allowing states to tailor responses to local needs. Some federal lawmakers and industry leaders advocate for a single, consistent framework to support innovation and competitiveness.

California Rep. Jay Obernolte (R), co-chair of the Bipartisan Artificial Intelligence Task Force, described the moratorium as a temporary measure to prevent states from outpacing federal legislation.

Meanwhile, state legislators argue that they can act faster and more flexibly than federal agencies and Congress. They insist that cutting off states’ regulatory authority now would halt valuable experimentation and democratic input on AI governance.

What This Means Going Forward

The Senate will consider the budget reconciliation bill soon, and the debate over AI regulatory authority will be a critical factor. The decision will shape how AI is governed across the country, balancing innovation, public safety, and the rights of states to protect their communities.

For government professionals seeking to understand AI policy developments, tracking this issue is essential. Staying informed on both federal proposals and state initiatives can guide effective engagement with AI regulation efforts.

Those interested in building skills related to AI and its governance can explore up-to-date AI courses designed for professionals navigating this evolving field.