AI regulation ban secretly added to GOP spending bill

A controversial provision added to the House Budget Reconciliation bill would halt all state and local AI regulation for a decade, creating a regulatory vacuum at a time when governments are actively developing oversight frameworks. The sweeping preemption clause, introduced by Rep. Brett Guthrie (R-KY), would nullify both existing protections and future state-level guardrails across a broad spectrum of AI applications, potentially undermining public safety while centralizing regulatory authority at the federal level.

The big picture: House Republicans have inserted language into a budget bill that would prevent all state and local governments from regulating AI systems for 10 years.

• The provision, introduced by Representative Brett Guthrie of Kentucky, broadly defines AI to include both newer generative models and older automated decision systems.
• The ban would block states from enforcing both current laws and any future regulation related to artificial intelligence through 2035.

Existing protections at risk: Several state laws designed to safeguard citizens from AI harms would become unenforceable.

• California’s requirement that healthcare providers disclose AI use in patient communications would be nullified.
• New York’s 2021 law mandating bias audits for AI hiring tools would also be affected.
• California’s transparency law requiring AI developers to document training data, set to take effect in 2026, would be halted.

Why this matters: The provision could create a regulatory vacuum for AI oversight at a time when governments are actively developing frameworks to protect consumers.

• States would lose control over how they allocate federal funding for AI programs, potentially limiting innovation in responsible AI deployment.
• The move appears designed to prevent a patchwork of state regulations, but critics argue it eliminates necessary consumer protections.

What they’re saying: Democrats and tech safety organizations have voiced strong opposition to the proposal.

• Rep. Jan Schakowsky (D-Ill.), ranking member on the Commerce, Manufacturing and Trade Subcommittee, called it a “giant gift to Big Tech.”
• Nonprofit groups including the Tech Oversight Project and Consumer Reports warned the provision would leave consumers unprotected from AI harms like deepfakes and algorithmic bias.

What’s next: The House Committee on Energy and Commerce, chaired by Guthrie, scheduled consideration of the text during the budget reconciliation markup on May 13.

• The AI provision appears as an addition to broader healthcare changes in the reconciliation bill, potentially limiting dedicated debate on its technology policy implications.