Overview

• House Republicans have included a provision in the budget reconciliation bill to block states from enforcing AI regulations for the next decade.
• The measure would preempt state-level AI laws, such as New York's bias-audit requirement and California's healthcare AI disclosure rules, with limited exemptions for procedural laws.
• Democrats and tech safety advocates argue the provision benefits major tech companies like OpenAI, Google, and Meta, while leaving consumers vulnerable to AI-related harms like bias and deepfakes.
• The provision aligns with President Trump’s deregulatory AI policies, which emphasize innovation over regulation, and industry calls for a unified federal framework.
• The provision’s inclusion in the reconciliation bill is uncertain, as Senate rules demand that all measures in such bills be primarily fiscal in nature.