Republicans Propose 10-Year Ban on State-Level AI Regulations

Republicans are seeking to prevent states from regulating artificial intelligence. On Sunday, a Republican-controlled House committee introduced a budget reconciliation bill that would prohibit states from enforcing laws or regulations targeting a wide range of automated computing systems for ten years after federal enactment. This move could halt regulatory efforts across areas as varied as AI chatbots and online search results.

Democrats have labeled the new provision a "massive gift" to Big Tech, and advocacy groups such as Americans for Responsible Innovation (ARI) warn it may have "catastrophic consequences" for the public. Companies like OpenAI have been lobbying for such preemption in Washington, hoping to sidestep a growing number of pending and active state laws. The budget reconciliation process enables lawmakers to expedite spending-related bills by requiring only a Senate majority rather than 60 votes.

The bill, put forward by House Energy and Commerce Committee Chairman Brett Guthrie (R-KY), would bar states from imposing "legal impediments"—including restrictions related to system design, performance, civil liability, or documentation—on AI models and "automated decision" systems. The legislation defines the latter as any computational process using machine learning, statistical modeling, data analytics, or artificial intelligence that generates simplified outputs such as scores, classifications, or recommendations intended to materially influence or replace human decision-making.

As a result, the ten-year freeze could apply far beyond AI. Travis Hall, Director of State Engagement at the Center for Democracy & Technology, told The Verge that the automated decision systems covered by the bill "are embedded throughout digital services, including search results, mapping directions, health diagnoses, and risk analyses used in sentencing decisions."

In the 2025 legislative session alone, states proposed over 500 bills that Hall believes the federal bill could "clearly preempt." These proposals cover a broad spectrum—from chatbot safety protections for minors to restrictions on deepfakes and disclosure rules for AI in political advertising. If enacted, the measure could undermine laws already passed in several states.

"This push to eliminate AI safeguards is a giveaway to Big Tech that will eventually harm the public."

Last year, California Governor Gavin Newsom signed legislation barring companies from using an actor's AI-generated likeness without consent. Tennessee adopted similar protections, and Utah now requires certain businesses to notify customers when they are interacting with AI. Colorado’s AI law, scheduled to take effect next year, will mandate that firms developing "high-risk" AI systems protect consumers from "algorithmic discrimination."

California also considered the landmark AI safety bill SB 1047, which would have imposed security requirements and legal liability on in-state AI companies such as OpenAI, Anthropic, Google, and Meta. OpenAI opposed the bill, arguing that AI regulation should be federal rather than a "patchwork" of state laws that complicates compliance. Governor Newsom vetoed the bill last September, and OpenAI has since emphasized its goal to avoid state regulations that "stifle innovation."

With minimal federal AI regulation in place, states have taken the lead in determining how to manage AI. Even before the emergence of generative AI, state lawmakers were working to address algorithmic discrimination—including race or gender bias in machine learning systems affecting housing and criminal justice. These efforts would likely be hindered by the Republican proposal.

Democrats have criticized the inclusion of the measure in the reconciliation bill. Representative Jan Schakowsky (D-IL) stated that the ten-year preemption would "enable AI companies to bypass consumer privacy protections, permit the spread of deepfakes, and allow firms to profile and deceive consumers using AI." In a post on X, Senator Ed Markey (D-MA) called the proposal "a step toward a Dark Age for our environment, children, and marginalized communities."

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The nonprofit Americans for Responsible Innovation (ARI) likened the potential ban to the government’s past failure to regulate social media effectively. "Lawmakers delayed social media safeguards for ten years, and we are still facing the consequences," ARI president Brad Carson said in a statement. "Now imagine those same harms amplified by the rapid evolution of AI... In the end, banning AI safeguards is a handout to Big Tech that will backfire on society."

The provision could face challenges in the Senate; ARI notes that the Byrd Rule limits reconciliation bills to fiscal matters. Nevertheless, it is concerning to see Republican lawmakers working to block oversight of a technology that is increasingly integrated into every aspect of life.