House Passes Budget Bill Freezing State AI Regulations

The United States House of Representatives passed a budget bill by a single vote that includes a provision to freeze state and local artificial intelligence regulations for 10 years. The measure, part of a larger package known as the One Big Beautiful Bill, seeks to extend 2017 tax cuts while preempting states from enacting AI laws to prevent a patchwork of inconsistent regulations that proponents argue hampers U.S. competitiveness against China.

The provision faces significant opposition as it moves to the Senate. Republicans including Senators Josh Hawley and Marsha Blackburn have voiced dissent, while Representative Marjorie Taylor Greene stated she was unaware of the provision and would have voted against it. Senator Ted Cruz indicated he might introduce the AI freeze in a separate legislative package if it is stripped from the current budget bill due to procedural hurdles.

State-level resistance has intensified, with more than 50 lawmakers nationwide, including six from Georgia, signing a bipartisan letter urging Congress to oppose the moratorium. Critics, including the consumer advocacy group Public Citizen, describe the move as appeasement to Big Tech. In Colorado, the state government recently preserved its own AI regulatory framework, SB24-205, after the Chair of the Joint Technology Committee blocked a lobbyist-driven attempt to delay the law's implementation.