Overview

• The House Energy and Commerce Committee, led by Chairman Brett Guthrie, introduced a provision in a budget bill to preempt state AI laws for ten years.
• State attorneys general from California, New York, and Ohio, along with a coalition of 77 advocacy groups, have called for the provision's repeal, citing risks to consumer protections and accountability.
• The bill broadly defines AI and would prevent states from legislating on key areas like AI design, liability, and performance, potentially overriding over 75 existing state measures.
• Critics, including the National Conference of State Legislatures, warn the moratorium could stifle innovation, leave communities vulnerable, and freeze regulatory progress while no federal framework exists.
• Advocacy groups argue the proposal prioritizes industry interests by removing oversight and accountability, leaving AI companies largely unregulated for a decade.