The US House of Representatives narrowly passed a budget bill that has been described by President Trump and others as a significant legislative achievement. Embedded within the bill is a provision for a ten-year ban on state regulations concerning artificial intelligence (AI). This federal directive would restrict states from implementing their own AI-related laws for the next decade.
The bill received support primarily from Republican members, marking a major federal move in technology policy, though it was bundled with a budget unrelated to AI. The bill has yet to become law, as it must still pass through the Senate, where Democratic lawmakers are expected to challenge the AI regulation ban under the Byrd Rule, which disallows non-budgetary provisions during reconciliation.
Some Republicans in the Senate have expressed concerns regarding the ban, including Sen. Marsha Blackburn from Tennessee, who fears it could nullify state laws protecting artists from deepfakes. Sen. Josh Hawley of Missouri has also criticized the ban for potentially hindering states’ efforts to address AI-related concerns.
Proponents of the ban argue that it aims to prevent a fragmented approach to AI laws across states, allowing Congress time to establish a cohesive federal policy. However, critics, including many Democratic legislators and organizations like the Electronic Frontier Foundation, argue that the ban serves the interests of large tech companies by maintaining an unregulated market, which they claim could endanger citizens by leaving them unprotected from AI-related risks.
The budget bill as approved also includes cuts to Medicaid and SNAP benefits, potentially impacting millions of Americans. It could also lead to significant reductions in Medicare funding, partly due to an anticipated $4 trillion increase in the national deficit. Additionally, the bill ends the electric vehicle tax credit, and these measures support the extension and expansion of previous tax cuts favoring higher-income earners.
