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House Committee Aims to Ban States From Regulating AI

DATE POSTED:May 12, 2025

A House committee is reportedly trying to add language to President Donald Trump’s tax and spending bill that would prevent states from regulating artificial intelligence.

The House Energy and Commerce Committee drafted the bill and will debate it Tuesday (May 13), Bloomberg reported Monday (May 12), adding that the draft bill would place a 10-year moratorium on state regulation in the AI field.

The language is unlikely to be included in the tax bill, though, because the special parliamentary procedure being used to move the bill through Congress requires that provisions be primarily fiscal, according to the report.

Still, the move will show where key Republicans stand on the matter of AI regulation, the report said, adding tech executives have encouraged Congress to pass federal legislation that would prohibit states from creating their own rules around AI.

Tech executives have said that they would have difficulty dealing with a variety of state standards, according to the report.

Proponents of regulation at the state level have said that state lawmakers should be free to pass laws that would promote AI safety and prevent the misuse of the technology, per the report.

When several tech giants, AI startups and financial institutions weighed in on the White House’s proposed AI Action Plan, one recurring theme was a desire for regulatory consistency to unify the patchwork of state laws, PYMNTS reported in April.

In comments submitted by companies and released April 24 by the federal government, Meta warned that fragmented state-level rules would raise costs and stifle innovation, Uber urged federal preemption to eliminate the growing patchwork of inconsistent state AI laws, and J.P. Morgan Chase echoed the concerns of others about a patchwork of state laws and called for the federal government to preempt state laws.

Colorado passed a sweeping AI law last year to go into effect in February 2026. It has faced backlash from industry groups saying it is too “rigid and vague” and from consumer advocates who believe it doesn’t go far enough. Last week, government leaders called for a delay of the law’s implementation until January 2027.

Virginia Gov. Glenn Youngkin vetoed a bill in his state in March saying it “would harm the creation of new jobs, the attraction of new business investment, and the availability of innovative technology.”

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The post House Committee Aims to Ban States From Regulating AI appeared first on PYMNTS.com.