GOP Split Over Federal Moratorium on State AI Regulation

A provision in the One Big Beautiful Bill Act (OBBBA) that preempts state-level regulation of artificial intelligence (AI) has become a flashpoint in the ongoing legislative debate. While the provision aims to centralize AI regulation at the federal level, it has sparked bipartisan opposition. Congresswoman Marjorie Taylor Greene (R-Ga.) criticized the moratorium, calling for its removal, arguing it undermines state power in Favor of an expanded federal role. Greene, a proponent of preserving state rights, expressed concern over the growing influence of federal governance, particularly regarding technology regulation.
Growing Support for AI Federal Preemption
On the other hand, figures like Neil Chilson, former chief technologist at the Federal Trade Commission, support the federal preemption stance, arguing that state-level AI regulation could hinder progress, especially considering China’s centralized approach to technological resources. State regulators, especially in California, have been active in pushing forward AI regulations; however, critics worry that this could create an uncoordinated patchwork of regulations across the U.S., potentially stifling innovation.
Also Read: German Firms Submit Rival Bids for EU AI Data Centre
The National AI Regulatory Debate
This debate is not confined to one political faction. Governors from both red and blue states, including Republican Governor Glenn Youngkin of Virginia and Democratic Governor Jared Polis of Colorado, have expressed concern about the risks of a disjointed, state-by-state regulatory approach. They believe federal leadership is necessary to avoid conflicts and foster cohesive national progress. The Biden administration, meanwhile, faces pressure to develop a balanced and strategic approach that enables innovation while addressing privacy, ethics, and security concerns associated with AI development. The resolution of this issue will likely set the tone for AI policy in the U.S. for years to come.