Trump Bill: States Could Be Barred from AI Regulation
Source: usatoday.com
Trump's 'Big Beautiful Bill' & AI Regulation
President Donald Trump’s massive bill package, called the ‘Big Beautiful Bill,’ includes a proposal that could hinder the growing movement to regulate artificial intelligence at the state level.
The ban is part of a section of the bill that would allocate $500 million over 10 years to modernize government systems using AI and automation. It would prevent states from creating new AI regulations and stop many from enforcing existing ones.
The 1,000-plus-page bill, backed by Republicans, passed in the House by one vote on May 22 and has moved to the Senate. Republicans want to finalize the bill by the end of July to avoid a debt default, but its passage is uncertain due to party disagreements over Medicaid, tax cuts, and government spending. Some Republican lawmakers are also concerned about the proposed AI regulation ban.
AI Regulation Landscape
The regulation of artificial intelligence is often compared to the Wild West, with governments worldwide struggling to keep pace with the rapidly advancing technology. AI has become a popular tool for public and private organizations, with its adoption outpacing the ability of governments to implement regulations.
Currently, there is no federal oversight of AI, leaving states to regulate it through a patchwork of laws. The Biden administration introduced a now-defunct blueprint for an AI Bill of Rights, similar to the European Union’s document, which directed state agencies to assess AI's uses and impacts, evaluate risks, and train employees.
The Trump administration's new AI framework prioritizes AI innovation. Their stance on regulation aligns with many tech companies who believe it would stifle innovation.
Many regulations target AI scams, deepfakes, and disinformation, with increasing attention on other potential harms. Organizations like the California Initiative for Technology and Democracy (CITED) warn of possible negative impacts, arguing for regulation in some areas. According to a January 2024 report by CITED, AI could be used by state and non-state actors to develop dangerous weapons, increase surveillance, and amplify biases and discrimination.
Republican Pushback
While Republicans generally supported the provision in a House subcommittee hearing on May 21, Senators Josh Hawley of Missouri and Marsha Blackburn of Tennessee have recently opposed the ban.
Blackburn said in a May 21 hearing on AI impersonations, “We certainly know that in Tennessee, we need those protections… And until we pass something that is federally preemptive, we can’t call for a moratorium.” Hawley also expressed concerns in a May 13 interview, stating that states should be able to experiment with different regulatory approaches and that sensible AI oversight is needed to protect people’s liberties.
The argument against regulation often centers on the idea that it could limit innovation and reduce U.S. competitiveness. Others, like Sean Heather of the U.S. Chamber of Commerce, argue that states are regulating AI too quickly. Heather said during the May 21 hearing, “We should stop international patchworks and domestic patchworks in AI regulation... We should not be in a rush to regulate... taking a time out to discuss it at a federal level is important.”
In the 2024 legislative session, at least 45 states, plus Puerto Rico, the Virgin Islands, and Washington, D.C., introduced AI bills, according to the National Conference of State Legislatures. Over 30 states and territories passed AI legislation, with Utah, Maryland, and Florida enacting regulatory and oversight acts. There are 16 AI regulation bills introduced last year still pending legislative approval across seven states and Puerto Rico, with more than a dozen new regulatory proposals introduced in statehouses across the country in 2025.