The Republican-dominated US Senate is poised to slap a ten year moratorium on state and local regulation of AI.
The moratorium is backed by the Trump administration, and will give big Tech free rein to push ahead with the rollout of AI without being stymied by state or local regulations.
Trump’s administration is keen to avoid any brake on AI development, lest China – or anyone else – gain an edge over the US. It has also has the backing of most of Big Tech’s power brokers.
The provision declares that “no eligible entity or political subdivision thereof may enforce, during the 10-year period beginning on the date of enactment of this subsection, any law or regulation of that eligible entity or a political subdivision thereof limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce”.
The Centre for American Progress Senior policy analyst Nicole Alvarez wrote earlier this month that the bill would block states from regulating AI, “regardless of evidence of harm, priority, urgency, or public demand for protections.”
“That includes efforts to limit algorithmic discrimination in hiring and health care decision-making systems, regulate biometric surveillance in public places and schools, or curb the spread of AI-generated misinformation ahead of an election.
There had been confusion whether the moratorium would only apply to states that accepted Federal funding tied to broadboand rollouts.
However, it seems the latest iteration – produced by Ted Cruz – does indeed tie the moratorium to broadband expansion.
This iteration was produced to ensure the moratorium could be included in the “One Big Beautiful Bill” currently barging its way through Congress.
The One Big Beautiful Bill seems bound to pass, given the Republicans’ domination of Congress.
The State of rights
But dissident Republicans are uneasy. Not necessarily because they’re relaxed about the impact of AI – though some are.
Rather, they are concerned that the provisions is an infringement on States’ rights, something Republicans are very keen on when it comes to shooting down socially liberal legislation from Washington. Though, arguably, they are less likely to bang the drum for States’ rights when it’s Trump taking control of the California national guard.
Meanwhile, State efforts do raise the prospect of fragmented policy making – and of abrupt about turns by leaders.
Last year, California governor nixed proposed state legislation on AI. Last week he touted a report that would “help pave the way for the responsible, ethical, and safe use of AI for the benefit of all Californians by offering a policy framework for workable guardrails based on an empirical, science-based analysis of the technology’s capabilities and risks.”
He compared that to the Trump moratorium on “state laws protecting against the misuse of AI, including California’s laws that ban AI-generated child pornography, deepfake porn, and robocall scams against the elderly.”
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