AI regulation battle heats up as 100+ groups and assorted states oppose GOP bill

As the Trump administration advances a new bill that would ban state-level AI regulation for a decade, opposition is mounting from a diverse coalition of organizations concerned about the potential consequences for public safety and corporate accountability. This legislative provision, embedded within a larger tax and spending package, represents a significant shift in AI governance at a time when the technology is rapidly spreading into critical areas like healthcare, hiring, and policing.

The big picture: A provision in Trump’s “one big, beautiful” agenda bill would prohibit states from enforcing AI-related laws or regulations for 10 years, effectively preempting even existing state-level protections.

• More than 100 organizations, including academic institutions and advocacy groups, have signed a letter to Congress opposing the measure.
• The bill cleared the House Budget Committee on Sunday and now moves toward full House consideration before potential Senate review.

Why this matters: The moratorium would create a regulatory vacuum at a time when AI is rapidly expanding into high-risk applications across healthcare, hiring, and law enforcement.

• States have increasingly stepped in to regulate AI risks where federal guidelines are lacking, with Colorado, New Jersey, and Ohio all implementing or considering AI-specific protections.
• Trump has already rolled back limited federal AI safeguards, revoking a Biden-era executive order designed to provide guardrails around artificial intelligence.

What they’re saying: Critics argue the provision would eliminate corporate accountability for harmful AI systems, regardless of intent or impact.

• “This moratorium would mean that even if a company deliberately designs an algorithm that causes foreseeable harm…the company making or using that bad tech would be unaccountable to lawmakers and the public,” states the letter sent to congressional leaders.
• Emily Peterson-Cassin, corporate power director at Demand Progress, called the provision “a dangerous giveaway to Big Tech CEOs who have bet everything on a society where unfinished, unaccountable AI is prematurely forced into every aspect of our lives.”

Behind the numbers: The opposition letter gathered 141 signatories representing diverse interests, including Cornell University, Georgetown Law’s Center on Privacy and Technology, the Southern Poverty Law Center, and employee groups from major tech companies like Amazon and Google.