House GOP Advances Bill Blocking California AI Regulations

House Republicans have advanced a budget reconciliation bill that includes a 10-year moratorium on state laws regulating artificial intelligence, aiming to prevent enforcement of numerous AI regulations passed or proposed by states like California. This move would block about 600 draft AI bills across 45 states, including California laws requiring transparency and evaluation of AI in critical areas such as insurance and employment. The California Privacy Protection Agency and consumer advocates have strongly opposed the moratorium, warning it would strip millions of Americans of privacy rights and protections related to automated decision-making technologies. Critics also highlight concerns that the moratorium undermines cybersecurity measures embedded in state AI regulations designed to protect consumer data. Separately, California passed legislation banning 'surveillance pricing,' which prohibits companies from setting prices based on personal data collected through electronic surveillance, aiming to ensure fairer pricing practices. The ongoing debate reflects tensions between federal efforts to standardize AI regulation and state initiatives to safeguard consumer privacy and data protection.