140+ Groups Oppose House GOP's Sweeping Ban on State AI Regulation

Demand Progress on Monday led over 140 organizations "committed to protecting civil rights, promoting consumer protections, and fostering responsible innovation" in a letter opposing U.S. House Republicans' inclusion of legislation that would ban state and local laws regulating artificial intelligence in a megabill advanced by the Budget Committee late Sunday.

Section 43201(c)—added by U.S. Rep. Brett Guthrie (R-Ky.) ahead of last Tuesday's markup session—says that "no state or political subdivision thereof may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10-year period beginning on the date of the enactment of this act."

"Protections for civil rights and children's privacy, transparency in consumer-facing chatbots to prevent fraud, and other safeguards would be invalidated, even those that are uncontroversial."

In the new letter, the coalition highlighted how "sweeping" the GOP measure is, writing to House Speaker Mike Johnson (R-La.), Minority Leader Hakeem Jeffries (D-N.Y.), and members of Congress that "as AI systems increasingly shape critical aspects of Americans' lives—including hiring, housing, healthcare, policing, and financial services—states have taken important steps to protect their residents from the risks posed by unregulated or inadequately governed AI technologies."

"As we have learned during other periods of rapid technological advancement, like the industrial revolution and the creation of the automobile, protecting people from being harmed by new technologies, including by holding companies accountable when they cause harm, ultimately spurs innovation and adoption of new technologies," the coalition continued. "In other words, we will only reap the benefits of AI if people have a reason to trust it."

According to the letter:

This total immunity provision blocks enforcement of all state and local legislation governing AI systems, AI models, or automated decision systems for a full decade, despite those states moving those protections through their legislative processes, which include input from stakeholders, hearings, and multistakeholder deliberations. This moratorium would mean that even if a company deliberately designs an algorithm that causes foreseeable harm—regardless of how intentional or egregious the misconduct or how devastating the consequences—the company making that bad tech would be unaccountable to lawmakers and the public. In many cases, it would make it virtually impossible to achieve a level of transparency into the AI system necessary for state regulators to even enforce laws of general applicability, such as tort or antidiscrimination law.

"Many state laws are designed to prevent harms like algorithmic discrimination and to ensure recourse when automated systems harm individuals," the letter notes. "For example, there are many documented cases of AI having highly sexualized conversations with minors and even encouraging minors to commit harm to themselves and others; AI programs making healthcare decisions that have led to adverse and biased outcomes; and AI enabling thousands of women and girls to be victimized by nonconsensual deepfakes."

If Section 43201(c) passes the Republican-controlled Congress and is signed into law by President Donald Trump, "protections for civil rights and children's privacy, transparency in consumer-facing chatbots to prevent fraud, and other safeguards would be invalidated, even those that are uncontroversial," the letter warns. "The resulting unfettered abuses of AI or automated decision systems could run the gamut from pocketbook harms to working families like decisions on rental prices, to serious violations of ordinary Americans' civil rights, and even to large-scale threats like aiding in cyber attacks on critical infrastructure or the production of biological weapons."

The coalition also called out "Congress' inability to enact comprehensive legislation enshrining AI protections leaves millions of Americans more vulnerable to existing threats," and commended states for "filling the need for substantive policy debate over how to safely advance development of this technology."

In the absence of congressional action, former President Joe Biden also took some steps to protect people from the dangers of AI. However, as CNNpointed out Monday, "shortly after taking office this year, Trump revoked a sweeping Biden-era executive order designed to provide at least some safeguards around artificial intelligence. He also said he would rescind Biden-era restrictions on the export of critical U.S. AI chips earlier this month."

The groups asserted that "no person, no matter their politics, wants to live in a world where AI makes life-or-death decisions without accountability... Section 43201(c) is not the only provision in this package that is of concern to our organizations, and there are some provisions on which we will undoubtedly disagree with each other. However, when it comes to this provision, we are united."

"Americans deserve both meaningful federal protections and the ability of their states to lead in advancing safety, fairness, and accountability when AI systems cause harm," concluded the coalition, which includes 350.org, the American Federation of Teachers, Center for Democracy & Technology, Economic Policy Institute, Free Press Action, Friends of the Earth U.S., Greenpeace USA, Groundwork Collaborative, National Nurses United, Public Citizen, Service Employees International Union, and more.

In a Monday statement announcing the letter, Demand Progress corporate power director Emily Peterson-Cassin blasted the provision as "a dangerous giveaway to Big Tech CEOs who have bet everything on a society where unfinished, unaccountable AI is prematurely forced into every aspect of our lives."

"Speaker Johnson and Leader Jeffries must listen to the American people and not just Big Tech campaign donations," she said. "State laws preventing AI from encouraging children to harm themselves, making uninformed decisions about who gets healthcare, and creating nonconsensual deepfakes will all be wiped away unless Congress reverses course."