House budget bill would put 10-year pause on state AI regulation

House budget bill would put 10-year pause on state AI regulation
States would be barred from enforcing new laws or regulations on artificial intelligence for 10 years under bill text pending in the U.S. House, although it’s unclear if the measure can survive.

As part of the budget reconciliation process — described by President Donald Trump as a “big, beautiful bill” that contains many of his and Republicans’ legislative priorities — the House Energy and Commerce Committee has included language in its section that would impose the 10-year state AI moratorium.



Per the bill text, released late Sunday night and marked up on Tuesday afternoon by the committee, “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” after its passage. Committee Democrats quickly slammed the provision.



“This ban will allow AI companies to ignore consumer privacy protections, let deepfakes spread, and allow companies to profile and deceive consumers using AI,” Rep. Jan Schakowsky, an Illinois Democrat who is ranking member of the committee’s subcommittee on commerce, manufacturing and trade, said in a statement. “After stopping comprehensive national privacy from passing last year, Republicans are going after states and leaving consumers unprotected online.”



It is unclear if the language would pass muster with the Senate, which could find that it violates the Byrd Rule, a procedural rule that limits the number of extraneous provisions included in reconciliation legislation.



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But its inclusion in the reconciliation package comes as states have increasingly looked to regulate AI themselves in the absence of Congress ..

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