Dems Slam 10-Year Ban On State AI Regulation In Trump-Backed Bill

House Republicans have inserted a surprise clause into their signature tax bill that would ban states and local governments from regulating artificial intelligence (AI) for the next 10 years, drawing backlash from Democrats and state lawmakers.

About half of all U.S. states have passed laws addressing AI-generated deepfakes in political campaigns.

The move was first reported by Matt Brown and Matt O’Brien for the Associated Press (AP). The brief but consequential provision was included during the House Energy and Commerce Committee’s markup of the sweeping GOP tax legislation.

The measure would benefit the AI industry, which has lobbied for consistent, federal-level regulations amid growing scrutiny of the technology’s risks and impact on society.

While far-reaching if enacted, the clause faces tough odds in the Senate.

“I don’t know whether it will pass the Byrd Rule,” said Sen. John Cornyn (R-Texas), referencing the budget reconciliation rule requiring bill provisions to primarily address fiscal matters, as reported by Ali Swenson and Jesse Bedayn for AP.

To date, about half of all U.S. states have passed laws addressing AI-generated deepfakes in political campaigns, according to a tracker by the watchdog group Public Citizen.

Many of these efforts were triggered by a wave of misinformation incidents during 2024 global elections.

California State Senator Scott Wiener, a Democrat from San Francisco, called the proposed ban “truly gross.”

Wiener previously authored a pioneering AI safety bill that was ultimately vetoed by Governor Gavin Newsom, also a Democrat from San Francisco, as reported by Jeffrey Collins and Trân Nguyễn for AP.