House Republicans’ sweeping “One Big Beautiful Bill Act” would dramatically reshape the regulatory landscape for AI, climate initiatives, and consumer protections if enacted. The narrowly-passed budget reconciliation bill faces an uncertain future in the Senate, despite President Trump’s backing. This legislation represents a significant potential shift in how emerging technologies like AI are regulated in the U.S., with implications for state authority, environmental policy, and consumer financial protection.
The big picture: The bill would impose a 10-year moratorium on state AI regulation, effectively nullifying hundreds of existing and proposed state laws governing artificial intelligence and automated decision systems.
- Republican supporters and OpenAI argue this pause is necessary to help U.S. companies innovate and compete with China.
- The sweeping language could potentially affect more than 60 AI-related state laws already enacted, according to the National Conference of State Legislatures.
Environmental impact: Biden-era tax credits for electric vehicles and renewable energy would face significant cuts within two years if the package becomes law.
- The legislation would eliminate the $7,500 credit for purchasing eligible EVs, the $4,000 credit for eligible used EVs, and credits for home refueling infrastructure.
- Renewable energy credits would also be phased out early and face new restrictions that would disqualify many projects.
Consumer protection rollbacks: The Consumer Financial Protection Bureau would see its funding further restricted, continuing the agency’s dismantling that began under Elon Musk’s Department of Government Efficiency.
- The bill would cap CFPB funding from the Federal Reserve at 5 percent of the system’s total operating expenses, down from the current 12 percent.
Border security investment: The legislation allocates substantial funding for border enforcement technology and infrastructure.
- The package includes $46 billion to build and “modernize” the U.S.-Mexico border wall.
- An additional $1 billion would fund technology to detect drugs and contraband at border crossings.
- States would receive $12 billion in reimbursements for their border security expenditures.
Healthcare restrictions: Starting in 2027, health care plans purchased through the Affordable Care Act marketplace would be prohibited from covering gender-affirming care.
- The ban would include hormone therapy and surgical procedures.
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