State Lawmakers Call on Congress to Ditch 'Ridiculous' Legislation Forbidding Local Regulation of AI

A bipartisan group of state lawmakers told their counterparts in the U.S. Congress Tuesday that they hear frequently from their constituents about concerns regarding the rise of artificial intelligence and demanded that they not leave people across the country "vulnerable to harm" by passing a Republican-pushed provision to stop state legislatures from regulating AI.

The provision is part of the massive tax and spending bill that narrowly passed in the House last month and is now being taken up by the Senate.

Republicans hope to approve the bill in the Senate through reconciliation, which would allow it to pass with a simple majority along party lines. But at the state level, half of the 260 lawmakers who wrote to the Senate and House on Tuesday were Republicans who warned that the provision imposing a 10-year moratorium on state-level AI regulations would "cut short democratic discussion of AI policy" and "freeze policy innovation in developing the best practices for AI governance at a time when experimentation is vital."

"State legislators have done thoughtful work to protect constituents against some of the most obvious and egregious harms of AI
that the public is facing in real time," said the lawmakers. "A federal moratorium on AI policy threatens to wipe out these laws and a range of legislation, impacting more than just AI development and leaving constituents across the country vulnerable to harm."

The moratorium would tie state lawmakers' hands as they try to address new AI threats online, AI-generated scams that target seniors, and the challenges that an "AI-integrated economy" poses for workers, artists, and creators.

"Given the long absence of federal action to address privacy and social media harms, barring all state and local AI laws until Congress acts threatens to setback policymaking and undermine existing enforcement on these issues."

"Over the next decade, AI will raise some of the most important public policy questions of our time, and it is critical that state policymakers maintain the ability to respond," wrote the lawmakers, whose letter was organized by groups including Common Sense and Mothers Against Media Addiction.

Proponents of the reconciliation bill's AI provision claim that various state-level regulations would put roadblocks in front of tech firms and stop them from competing internationally in AI development.

South Dakota state Sen. Liz Larson (D-10), who sponsored a bill requiring transparency in political deepfake ads ahead of elections that passed with bipartisan support, toldThe Washington Post that the federal government has left state legislatures with no choice but to handle the issue of AI on their own.

"I could understand a moratorium, potentially, if there was a better alternative that was being offered at the federal level," Larson told the Post. "But there's not."

Congress has considered a number of bills aimed at regulating AI, but there are currently no comprehensive federal regulations on AI development. President Donald Trump issued an executive order aimed at "removing barriers to American leadership in AI," which rescinded former President Joe Biden's executive order for the Safe, Secure, and Trustworthy Development and Use of AI.

Ilana Beller, a democracy advocate for Public Citizen, said the "ridiculous provision" in the reconciliation bill "is a slap in the face to the state legislators who have taken bipartisan action to protect their constituents from urgent AI-related harms—and a thinly veiled gift to Big Tech companies that will profit as a result of a complete lack of oversight."

"The idea that the U.S. can afford to take a decade-long break from regulating technology that is getting more powerful by the day would be laughable if it weren't so appalling," said Beller. "Members of Congress should listen to their counterparts at the state level and reject this provision immediately."

More than 140 civil society groups last month, as Common Dreams reported at the time, expressed their opposition to the provision, warning that "no person, no matter their politics, wants to live in a world where AI makes life-or-death decisions without accountability."

The Senate parliamentarian is reviewing the bill for compliance with the Byrd Rule, which stipulates that reconciliation bills can only contain budget-related provisions.

Republicans including Sen. Ted Cruz (R-Texas) have suggested they could introduce a separate bill to weaken AI regulations or preempt any state-level laws if the provision is stripped from the reconciliation bill.

"We welcome Congress's attention to AI policy and stand ready to work with federal lawmakers to address the challenges and opportunities created by AI," said the state lawmakers. "However, given the long absence of federal action to address privacy and social media harms, barring all state and local AI laws until Congress acts threatens to setback policymaking and undermine existing enforcement on these issues. We respectfully urge you to reject any provision that preempts state and local AI legislation in this year's reconciliation package, and to work toward the enactment, rather than the erasure, of thoughtful AI policy solutions."