House Republicans Propose 10-Year Ban on State AI Regulation

House Republicans have introduced a provision in a budget reconciliation bill that would ban states from regulating artificial intelligence (AI) and automated decision-making systems for 10 years, effectively centralizing AI regulation at the federal level. This proposed moratorium would prevent states from enforcing existing or future AI-related laws covering a broad range of technologies, including chatbots, algorithms influencing medical diagnoses, search results, and court decisions. The bill has drawn criticism from Democrats and human rights advocates who argue it creates a dangerous regulatory vacuum that risks public safety, privacy, and civil rights, and could block numerous state initiatives on AI transparency, child safety, and deepfake content. Major tech companies such as OpenAI, Meta, and Alphabet have supported the federal preemption, warning that state regulations could hinder innovation and investment. However, some Republicans, including Senator Josh Hawley, oppose the ban, advocating for state-level experimentation with AI oversight, while others, like Senator Ted Cruz, support a national, light-touch regulatory approach. The proposal still faces potential hurdles in the Senate, including whether it qualifies for inclusion in budget reconciliation and broader congressional review.