GOP's 10-Year AI Regulation Ban Quietly Added to Budget Bill
House Republicans have inserted a sweeping provision into the Budget Reconciliation bill that would block state and local governments from regulating artificial intelligence for a decade. The measure, introduced by Rep. Brett Guthrie (R-KY), aims to prevent any enforcement of laws governing AI models, automated decision systems, or AI technologies until 2035.
This AI regulation ban could nullify existing state laws, including California's requirement for healthcare providers to disclose AI-generated communications and New York's mandate for bias audits in AI hiring tools. It also threatens California's pending 2026 law requiring AI developers to document training data.
Implications for State AI Laws and Federal Funding
The provision's broad language could freeze all state-level AI regulations, including those designed to protect consumers and workers. States would lose the ability to enforce transparency rules, bias mitigation requirements, or accountability measures for AI systems.
Additionally, the ban may restrict how states allocate federal funding for AI initiatives, potentially forcing alignment with White House priorities rather than local needs. Education Department AI programs, for example, could face new constraints on how they implement federally funded projects.
Pros & Cons
Pros
- Creates a uniform regulatory environment for AI development, reducing compliance complexity for tech companies.
- May accelerate AI innovation by preventing fragmented state-level restrictions.
Cons
- Eliminates state-level safeguards against AI bias, privacy violations, and unethical use.
- Prevents local governments from addressing AI risks tailored to regional needs.
Frequently Asked Questions
Which state AI laws would be affected by this ban?
California's healthcare AI disclosure law, New York's AI hiring bias audit mandate, and pending 2026 California requirements for AI training data documentation would all be impacted.
How long would the AI regulation ban last?
The moratorium would remain in effect for 10 years, blocking state and local AI regulations until 2035.
Could states still use federal funding for AI programs?
Yes, but the ban may limit how states allocate those funds, potentially requiring alignment with federal AI priorities.