GOP sneaks decade-long AI regulation ban into spending bill

Sweeping provision would halt all local oversight of AI by US states.

May 13, 2025 - 16:38
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GOP sneaks decade-long AI regulation ban into spending bill

On Sunday night, House Republicans added language to the Budget Reconciliation bill that would block all state and local governments from regulating AI for 10 years, 404 Media reports. The provision, introduced by Representative Brett Guthrie of Kentucky, states that "no State or political subdivision thereof may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10 year period beginning on the date of the enactment of this Act."

The broad wording of the proposal would prevent states from enforcing both existing and proposed laws designed to protect citizens from AI systems. For example, California's recent law requiring health care providers to disclose when they use generative AI to communicate with patients would potentially become unenforceable. New York's 2021 law mandating bias audits for AI tools used in hiring decisions would also be affected, 404 Media notes. The measure would also halt legislation set to take effect in 2026 in California that requires AI developers to publicly document the data used to train their models.

The ban could also restrict how states allocate federal funding for AI programs. States currently control how they use federal dollars and can direct funding toward AI initiatives that may conflict with the administration's technology priorities. The Education Department's AI programs represent one example where states might pursue different approaches than those favored by the White House and its tech industry allies.

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