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GOP Sneaks Decade-Long AI Regulation Ban Into Spending Bill

Linda Torries – Tech Writer & Digital Trends Analyst by Linda Torries – Tech Writer & Digital Trends Analyst
May 13, 2025
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Introduction to AI Regulation

The reconciliation bill has introduced a new provision that focuses on limiting state-level regulation of artificial intelligence (AI). This provision is added to the broader health care changes in the bill, which primarily focuses on cuts to Medicaid access and increased health care fees for millions of Americans. The AI provision appears to be an addition to these changes, potentially limiting debate on the technology’s policy implications.

The Proposal and Its Backlash

The move is already inspiring backlash. Tech safety groups and at least one Democrat have criticized the proposal. Rep. Jan Schakowsky (D-Ill.), the ranking member on the Commerce, Manufacturing and Trade Subcommittee, called the proposal a "giant gift to Big Tech," while nonprofit groups like the Tech Oversight Project and Consumer Reports warned it would leave consumers unprotected from AI harms like deepfakes and bias.

Big Tech’s Influence on the Administration

President Trump has already reversed several Biden-era executive orders on AI safety and risk mitigation. The push to prevent state-level AI regulation represents an escalation in the administration’s industry-friendly approach to AI policy. The AI industry has cultivated close ties with the Trump administration since before the president took office. For example, Tesla CEO Elon Musk serves in the Department of Government Efficiency (DOGE), while entrepreneur David Sacks acts as "AI czar," and venture capitalist Marc Andreessen reportedly advises the administration. OpenAI CEO Sam Altman appeared with Trump in an AI datacenter development plan announcement in January.

Potential Consequences of the Provision

By limiting states’ authority over AI regulation, the provision could prevent state governments from using federal funds to develop AI oversight programs or support initiatives that diverge from the administration’s deregulatory stance. This restriction would extend beyond enforcement to potentially affect how states design and fund their own AI governance frameworks.

Conclusion

The proposal to limit state-level regulation of AI has sparked controversy and raised concerns about the potential consequences for consumers and the tech industry. As the debate continues, it is essential to consider the implications of this provision and its potential impact on the future of AI development and regulation.

FAQs

  • What is the main focus of the reconciliation bill?
    The main focus of the reconciliation bill is on cuts to Medicaid access and increased health care fees for millions of Americans.
  • What is the AI provision in the bill?
    The AI provision aims to limit state-level regulation of artificial intelligence.
  • Who has criticized the proposal?
    Tech safety groups, Rep. Jan Schakowsky (D-Ill.), and nonprofit groups like the Tech Oversight Project and Consumer Reports have criticized the proposal.
  • What are the potential consequences of the provision?
    The provision could prevent state governments from using federal funds to develop AI oversight programs or support initiatives that diverge from the administration’s deregulatory stance.
  • Who are some of the key figures with ties to the Trump administration?
    Tesla CEO Elon Musk, entrepreneur David Sacks, venture capitalist Marc Andreessen, and OpenAI CEO Sam Altman are some of the key figures with ties to the Trump administration.
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Linda Torries – Tech Writer & Digital Trends Analyst

Linda Torries – Tech Writer & Digital Trends Analyst

Linda Torries is a skilled technology writer with a passion for exploring the latest innovations in the digital world. With years of experience in tech journalism, she has written insightful articles on topics such as artificial intelligence, cybersecurity, software development, and consumer electronics. Her writing style is clear, engaging, and informative, making complex tech concepts accessible to a wide audience. Linda stays ahead of industry trends, providing readers with up-to-date analysis and expert opinions on emerging technologies. When she's not writing, she enjoys testing new gadgets, reviewing apps, and sharing practical tech tips to help users navigate the fast-paced digital landscape.

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