GOP Aims to Silence States on AI Regulation for a Decade

House Republicans pushed forward a controversial plan last week that would block states from regulating artificial intelligence for the next decade. The proposal, included in the 2025 budget reconciliation bill draft, passed through the House Energy & Commerce Committee on May 14 by a vote of 29-24 along party lines.

The moratorium would prevent states from enforcing “any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems” for 10 years after enactment. It makes exceptions for laws that promote AI adoption or remove barriers to AI deployment. The ban also doesn’t apply to “generally applicable laws” that treat AI and similar technical systems equally.

Republicans argue that AI regulation should happen at the federal level rather than through a patchwork of state laws. “No one believes that AI should be unregulated,” said Rep. Jay Obernolte (R-CA), but he emphasized that Congress should take the lead. This approach aligns with the “light-touch” regulatory philosophy favored by the Trump Administration and the current Republican-controlled Congress.

Uniform federal oversight preferable to state-by-state AI regulations, reflecting GOP’s minimalist regulatory stance.

Democrats strongly opposed the measure. Rep. Frank Pallone (D-NJ) introduced an amendment to remove the moratorium language, but it failed in committee. Democrats worry that blocking state regulations without guaranteeing federal protections would leave a dangerous gap in oversight. Sen. Edward Markey warned this could lead to a Dark Age for vulnerable communities. The proposed moratorium comes as nearly 700 AI-related bills were introduced at the state level in 2024 alone.

If enacted, the moratorium would invalidate existing state AI regulations and prevent states from responding to AI issues specific to their populations for a decade. This would particularly impact states that have already invested resources in developing AI guardrails.

The proposal faces potential procedural hurdles in the budget reconciliation process, which follows specific rules about what can be included. Unlike the European Union’s comprehensive AI Act that categorizes systems by risk levels, the U.S. continues to lack a unified federal framework for AI governance. Whether the moratorium will survive to become law remains uncertain, but its advancement signals Republicans’ intent to establish federal control over AI regulation while limiting states’ ability to act independently.