• House Republicans' Action: On Sunday night, House Republicans added language to the Budget Reconciliation bill to block state and local governments from regulating AI for 10 years. The provision was introduced by Representative Brett Guthrie of Kentucky and states that no state or political subdivision can enforce AI regulations during the 10-year period starting from the act's enactment date.
• Impact on Existing Laws: The broad wording would prevent states from enforcing both existing and proposed laws to protect citizens from AI systems. Examples include California's law requiring healthcare providers to disclose AI use and New York's law mandating bias audits for AI tools in hiring. It would also halt California's 2026 legislation on publicly documenting data used to train AI models.
• Restriction on Funding: The ban could restrict how states allocate federal funding for AI programs. States currently control the use of federal dollars and can direct them to AI initiatives that may conflict with the administration's priorities. An example is the Education Department's AI programs.
• Committee Action: The House Committee on Energy and Commerce, chaired by Guthrie, scheduled consideration of the text during the budget reconciliation markup on May 13. The language defines AI systems broadly.
• Context of the Bill: The reconciliation bill focuses on cuts to Medicaid access and increased healthcare fees. The AI provision is an addition to these healthcare changes, potentially limiting debate on technology policy implications.
• Backlash: The move has inspired backlash. Tech safety groups and at least one Democrat criticized the proposal. Rep. Jan Schakowsky called it a "giant gift to Big Tech," and nonprofit groups warned it would leave consumers unprotected.
• Big Tech's White House Connections: President Trump has reversed several Biden-era executive orders on AI safety. The push to prevent state-level regulation represents an escalation in the administration's industry-friendly approach. The AI industry has cultivated close ties with the Trump administration, with figures like Tesla CEO Elon Musk, entrepreneur David Sacks, and venture capitalist Marc Andreessen involved. The provision could prevent states from using federal funds for AI oversight programs and affect their AI governance frameworks.