Congress May Block State AI Laws for 5 Years in New Bill

A new federal proposal could prevent states and local governments from enforcing their own artificial intelligence regulations for up to five years. The measure, championed by Sen. Ted Cruz (R-TX), is being pushed as part of a broader GOP legislative package that may be finalized before the July 4 deadline.

The proposal originally aimed for a 10-year federal preemption but has since been narrowed to five years in recent drafts. If passed, it would temporarily centralize AI regulation under federal authority, barring individual states from enacting or enforcing their own AI-related laws. This move has sparked significant debate among lawmakers, tech companies, and privacy advocates.

Supporters of the proposal argue that a unified federal framework is necessary to avoid a patchwork of conflicting regulations that could hinder innovation and create legal uncertainty for AI developers. They say a consistent national standard would provide clearer guidance for companies building and deploying AI technologies across state lines.

Critics, however, warn that blocking state-level oversight could delay important safeguards and leave consumers vulnerable. State governments have often been early movers in tech regulation, especially in areas like data privacy and algorithmic accountability. By removing their ability to act independently, the proposal could limit proactive responses to emerging AI risks.

As momentum builds around the megabill, the AI regulation provision remains one of the more contentious issues. Whether it survives into the final version could shape the future of how AI is governed in the U.S. for years to come.