Big Beautiful Bill Includes 10-Year Ban on State AI Regulation

AI Regulation Ban Crumbles as Senators Rebel

Senator Marsha Blackburn has rescinded her backing for a proposed five-year pause on state and local artificial intelligence legislation, just a day after reaching the deal with Senate Commerce Chair Ted Cruz. Blackburn’s decision places her alongside Senators Josh Hawley of Missouri and Rand Paul of Kentucky, who have also voiced opposition to the measure.

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A ten-year gag on state AI laws could redraw the map of American tech governance

Efforts by states to establish oversight of artificial intelligence may soon face a sweeping federal roadblock. Buried within President Donald Trump’s expansive legislative proposal, nicknamed the “Big Beautiful Bill,” is a measure that would halt both current and future state laws aimed at regulating AI. The provision is part of a broader $500 million initiative to revamp federal infrastructure using automation and machine learning over the next decade.

If enacted, the legislation would invalidate AI governance already passed by dozens of states and prevent new measures from being introduced at the state level. The bill reads:

“No State or political subdivision thereof may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10-year period beginning on the date of the enactment of this Act”

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US House Committee Advances 10-Year Moratorium on State AI Regulation

…On Sunday, the House Energy and Commerce Committee’s Chairman, Rep. Brett Guthrie (R-KY), released budget reconciliation text containing the 10-year moratorium.

Under “Section 43201: Artificial intelligence and information technology modernization initiative,” the text includes provisions to modernize federal IT systems with commercial AI technologies and mandate their adoption to “increase operational efficiency and service delivery,” automation, and cybersecurity. The moratorium is in Subsection (c), which states:

…that no state or political subdivision may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10-year period beginning on the date of the enactment of this Act.

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Republicans Move to Strip States of Power To Regulate Artificial Intelligence

…On Sunday, the House Energy and Commerce Committee’s Chairman, Rep. Brett Guthrie (R-KY), released budget reconciliation text containing the 10-year moratorium.

A GOP-led initiative designed to curb states from independently enforcing artificial intelligence regulations advanced on Saturday after clearing a significant procedural barrier. Senator Ted Cruz, chair of the Senate Commerce Committee, revised the proposal to align with federal budgetary constraints.

The updated provision threatens to withhold federal broadband funding from any state that attempts to implement its own AI rules within the next ten years...

Senator Marsha Blackburn of Tennessee openly criticized the idea, stating, “We do not need a moratorium that would prohibit our states from stepping up and protecting citizens in their state.”

While the House has already passed a version of the bill containing the moratorium, internal pushback followed.

Representative Marjorie Taylor Greene labeled the provision “a violation of state rights” and insisted it must be “stripped out in the Senate.” She emphasized her opposition by declaring she is “adamantly OPPOSED” to the measure.

Defending the moratorium, House Speaker Mike Johnson cited national security concerns and the support of former President Donald Trump. “We have to be careful not to have 50 different states regulating AI because it has national security implications” he said.

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