President Donald Trump‘s “Big, Beautiful Bill” has a small, ugly part to it that would prohibit the regulation of artificial intelligence (AI) by states.
In the next 10 years, $500 million would be allocated, if the bill is made into law, to modernize government systems with AI and automation, but state-level regulations of AI would be blocked in dozens of states when it comes to enforcing preexisting AI regulations and oversight structures, as reported by USA Today.
Puerto Rico, the Virgin Islands, Washington, D.C. and at least 45 states introduced legislation regarding AI in 2024, according to the National Conference of State Legislatures. Utah, Maryland and Florida passed regulatory and AI oversight acts. Seven states and Puerto Rico introduced 16 AI regulation bills which are still pending approval, while more than a dozen new regulatory proposals have been introduced in statehouses already in 2025.
House Republicans passed Trump’s mega bill on May 22 and it appears the U.S. Senate will delay discussion and a vote to next week. A tax and policy bill must be finalized by late July or the government faces a debt default. Among points of contention between Republicans and Democrats are Medicaid, tax cuts and the state-level AI regulation ban.
American lawmakers, especially U.S. Sen. Mark R. Warner of Virginia, a former technology entrepreneur, have worked in recent years to create a federal system of regulation for use of AI, but in no way intended for the prohibition of state-level regulations.
Following the European Union‘s lead with its AI Bill of Rights, the White House introduced its own AI Bill of Rights while President Joe Biden was in office, but the legislation was not formalized. The AI Bill of Rights would have directed agencies at the state-level to evaluate current uses and potential impacts of AI, evaluate potential AI risks and encourage training of state employees.
Trump’s AI framework now prioritizes acceleration of AI innovation and aligns with the stances taken by companies and the tech industry who are not crazy about regulation of AI.
AI creates positive and negative vibes for most humans. In medicine and research, AI can help with diagnosis and analysis. In education, AI can aid students in brainstorming ideas for school assignments.
However, the California Initiative for Technology and Democracy (CITED), a policy and advocacy organization, warns that the possible negative impacts of AI require regulation of some areas regarding the use of AI.
“Many commentators believe that AI could soon be used by state and non-state actors to develop dangerous weapons, increase surveillance, and magnify existing biases and discrimination in a variety of fields, from lending, to hiring, to policing,” a January 2024 report by CITED said. Experts with CITED include Georgetown Law’s Center on Privacy and Technology, the Southern Poverty Law Center, Actors’ Equity Association, Innocence Project and the National Union of Healthcare Workers.
Republican Sens. Marsha Blackburn of Tennessee and Josh Hawley of Missouri have expressed disapproval of the ban on state-level regulation.
“I would think that, just as a matter of federalism, we’d want states to be able to try out different regimes that they think will work for their state. And I think in general, on AI, I do think we need some sensible oversight that will protect people’s liberties,” Hawley told Business Insider in late May.
Tech industry leaders and companies are afraid that regulation of AI could limit its potential and make the United States less competitive with the rest of the world.
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Rebecca Barnabi
