House Bill Proposes 10-Year Ban on State AI Regulations Amid Push for National Framework
A controversial provision in a sweeping domestic policy bill passed by the US House of Representatives seeks to impose a 10-year federal moratorium on state and local regulation of artificial intelligence. The goal: prevent a patchwork of AI laws across the country and establish a uniform national framework.
The provision, part of a larger Trump-backed agenda bill focusing on tax cuts and immigration reform, passed narrowly in the House by a vote of 215-214. However, it faces significant hurdles in the Senate, where Republican leadership has pledged a major rewrite. The AI moratorium would pre-empt more than 1,000 state-level AI regulatory bills and halt enforcement of any currently enacted laws, covering areas such as hiring, housing, and public benefits.
Supporters Warn of Regulatory Chaos
Proponents of the moratorium argue that the US risks falling behind China in the global AI race if innovation is stifled by fragmented regulations. “An AI moratorium will help stop the proliferation of thousands of costly, confusing, contradictory technocratic mandates,” said Adam Thierer, a senior fellow at the R Street Institute. “It will help protect America’s ability to compete globally.”
The bill also includes $500 million in federal AI spending through the Department of Commerce to modernize government IT systems, potentially linking the moratorium to budgetary matters that could make it eligible for reconciliation and passable with a simple majority in the Senate.
Also Read: AI Laws Accelerate Across U.S. States, Creating Complex Compliance Landscape
Opposition from States, Legal Experts, and Lawmakers
The proposal has triggered sharp backlash from state officials, particularly in California. Governor Gavin Newsom and a bipartisan group of 35 state legislators have warned that the moratorium could block enforcement of vital laws addressing deepfakes, child exploitation, and other AI-related harms. In a joint letter, 40 state attorneys general echoed concerns that the measure would undermine consumer protections and state sovereignty.
Despite passing the House, the moratorium’s future is uncertain. If Senate leaders can’t justify its inclusion under the “Byrd Rule” for budget reconciliation or negotiate support among skeptical lawmakers, the measure may be stripped from the final version of the bill.
National AI Policy at a Crossroads
Technology policy advocates, such as Jessica Melugin of the Competitive Enterprise Institute, argue that a unified federal approach is necessary. “For innovation and competition to blossom, we need a national policy framework that protects interstate algorithmic commerce and speech,” Melugin said.
As the Senate prepares for debate, the AI moratorium has become a key flashpoint in the broader debate over who will govern the future of artificial intelligence in America.
