Donald Trump-Backed GOP Bill Seeks To Ban States From Regulating AI For 10 Years — Critics Calls It 'Federal Overreach' That Could Backfire

A new House Republican-backed provision in Donald Trump-backed "big, beautiful" bill reportedly aims to block state and local governments from regulating artificial intelligence for the next decade — and it's already sparking fierce backlash.

What Happened: Tucked into a sweeping GOP tax package, the clause states that "no state or political subdivision may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems," reported Fortune.

Supporters argue it's about avoiding regulatory chaos. "AI doesn't understand state borders," said Sen. Bernie Moreno (R-Ohio). "You can't have a patchwork of 50 states."

Previously, OpenAI CEO Sam Altman also appeared to echo this sentiment. "One federal framework, that is light touch, that we can understand and that lets us move with the speed that this moment calls for seems important and fine," he said during a Senate hearing last week.

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However, critics warn the bill would halt important local protections. California state Sen. Scott Wiener called the proposal "truly gross," writing on social media, "Congress is incapable of meaningful AI regulation… while also banning states from acting."

A bipartisan group of state attorneys general also voiced concern. "Instead of stepping up with real solutions, Congress wants to tie our hands," said South Carolina Attorney General Alan Wilson, a Republican, the report noted.

Why It's Important: On Friday, House Republicans failed to advance Trump’s massive tax and spending bill, revealing internal disagreements, reported BBC.

Despite Trump's plea on social media for lawmakers to "stop talking and get it done," some Republicans opposed the bill, arguing it didn't go far enough in reducing government spending.

Sen. Bernie Sanders (I-Vt.) also previously slammed the budget reconciliation bill, calling it a "death sentence" for millions of Americans.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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