Introduction to AI Regulation
The Federal Trade Commission (FTC) chairman would be required to issue a policy statement detailing the circumstances under which state laws that require alterations to the truthful outputs of AI models are preempted by the FTC Act’s prohibition on engaging in deceptive acts or practices affecting commerce.
The Cruz Plan
When Sen. Ted Cruz proposed a moratorium restricting state AI regulation in mid-2025, Sen. Marsha Blackburn (R-Tenn.) helped lead the fight against it. “Until Congress passes federally preemptive legislation like the Kids Online Safety Act and an online privacy framework, we can’t block states from making laws that protect their citizens,” Blackburn said at the time. Sen. Maria Cantwell (D-Wash.) also spoke out against the Cruz plan, saying it would preempt “good state consumer protection laws” related to robocalls, deepfakes, and autonomous vehicles.
Trump’s Proposal
Preempting State Laws
Besides reviving the Cruz plan, Trump’s draft executive order seeks new legislation to preempt state laws. The order would direct Trump administration officials to “jointly prepare for my review a legislative recommendation establishing a uniform Federal regulatory framework for AI that preempts State AI laws that conflict with the policy set forth in this order.”
Potential Legislation
House Majority Leader Steve Scalise (R-La.) this week said a ban on state AI laws could be included in the National Defense Authorization Act (NDAA). Democrats are trying to keep the ban out of the bill. “We have to allow states to take the lead because we’re not able to, so far in Washington, come up with appropriate legislation,” Sen. Jack Reed (D-R.I.), the ranking member on the Armed Services Committee, told Semafor.
The Debate
In a Truth Social post on Tuesday, Trump claimed that states are “trying to embed DEI ideology into AI models.” Trump wrote, “We MUST have one Federal Standard instead of a patchwork of 50 State Regulatory Regimes. If we don’t, then China will easily catch us in the AI race. Put it in the NDAA, or pass a separate Bill, and nobody will ever be able to compete with America.”
Conclusion
The debate over AI regulation is ongoing, with some arguing that a federal standard is necessary to prevent a patchwork of state laws, while others believe that states should be allowed to take the lead in regulating AI. As the issue continues to evolve, it is likely that we will see further proposals and counter-proposals from lawmakers on both sides of the aisle.
FAQs
- What is the FTC’s role in regulating AI?
The FTC chairman would be required to issue a policy statement detailing the circumstances under which state laws that require alterations to the truthful outputs of AI models are preempted by the FTC Act’s prohibition on engaging in deceptive acts or practices affecting commerce. - What is the Cruz plan?
The Cruz plan is a proposal to restrict state AI regulation, which was met with opposition from some lawmakers who believe that states should be allowed to make their own laws to protect their citizens. - What is Trump’s proposal?
Trump’s proposal seeks to preempt state laws and establish a uniform federal regulatory framework for AI. - What is the National Defense Authorization Act (NDAA)?
The NDAA is a bill that could potentially include a ban on state AI laws, which is being considered by lawmakers. - Why is AI regulation important?
AI regulation is important because it can help prevent the spread of misinformation, protect consumer privacy, and ensure that AI is developed and used in a way that benefits society as a whole.
