House Republicans have just introduced a new version of the massive Budget Reconciliation bill that includes new language that — if passed — will stop states from enacting regulation on artificial intelligence.
The new AI-specific language was just added late on May 12, on a bill that’s being debated by key House committees this week.
In his second administration, Trump has a new interest in AI, having previously ended Biden’s executive orders aimed at mitigating AI risks while working closely with big tech executives with close ties to AI, including Elon Musk and Marc Andreessen.
What the New Anti-Regulation AI Regulation Says
The new language bars any US state from enforcing any laws “regulating artificial intelligence models, artificial intelligence systems, or automated decision systems.”
The terminology, according to tech news site 404 Media, could be interpreted to cover both new generative AI tools like ChatGPT as well as pre-existing technology.
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“…no State or political subdivision thereof may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10 year period beginning on the date of the enactment of this Act.” -the bill
Rebuplicans have in the past argued that they cared about states’ rights and said that they were against government overreach. However, this new proposal is a direct restriction on state’s ability to inform or protect their citizens from AI-related concerns such as scams or privacy violations.
OpenAI Previously Asked Trump for Relief From State AI Regulations
This isn’t the first time we’ve covered the AI-friendly push to stop states from enacting regulations covering the industry. In March of this year, OpenAI petitioned the current administration for just that.
In a 15-page document, OpenAI claimed the bills being considered by various US states would slow down AI development and should be stopped by the federal government. If the Budget Reconciliation bill is passed in its current form, it sounds like OpenAI will get what it wants.
The massive 2025 budget reconciliation package holds a lot more than just the restriction on states’ rights for AI regulation, though.
The biggest headline has been slashes to the Medicaid program, but the Direct File program that allows for free tax filing could also be cut. If passed, the bill would require the Treasury Department to terminate the Direct File program “as soon as practicable,” and no later than 30 days after the law goes into effect.
The Bill Adds More De Minimis Changes, Too
Another change included in the current bill? The end of the de minimis exemption, which allows imports worth $800 or less to enter the US duty-free. President Donald Trump already ended this exemption for China through an executive order, but passing this bill into law would lock in that effect for all countries on a more permanent basis.
Earlier this week, a 90-day pause on the US-China tariffs was announced, along with a reduction in the recently-enstated duties on small packages worth $800 or less from 120% to 54%. The new bill’s suggested removal of the de minimis is yet another example of the constantly shifting tariff battle, which businesses everywhere are still figuring out how to deal with.
Now, a potential AI regulation threatens to reduce states’ ability to response on another front.
