Overview

• The House Energy and Commerce Committee approved a provision in the budget reconciliation bill to block state and local governments from regulating AI for a decade.
• The proposed moratorium broadly defines AI, encompassing models, systems, and automated decision-making processes, while including exceptions for federal oversight and deployment facilitation.
• Critics, including Democratic lawmakers and advocacy groups, argue the measure prioritizes corporate interests over consumer protections, calling it a 'gift to Big Tech.'
• If enacted, the ban could nullify existing state laws in California, New York, Tennessee, and Colorado addressing AI bias, transparency, and voice protections.
• The bill, which also includes deep cuts to social programs and tax breaks, faces uncertainty as it awaits a full House vote and potential Senate revisions.