A coalition of more than 140 organizations, including tech workers, civil society groups, and academic institutions, has urged House leaders to reject a proposal in the House’s tax and spending bill that would block states from regulating artificial intelligence (AI) models for the next 10 years.
The Proposal’s Impact
The provision, included in President Trump’s ‘big, beautiful bill,’ would bar states from enforcing laws or regulations governing AI models, systems, or automated decision systems. Critics argue this would remove accountability for developing technology, allowing companies to create harmful algorithms without consequence.

“This moratorium would mean that even if a company deliberately designs an algorithm that causes foreseeable harm, the company making that bad tech would be unaccountable to lawmakers and the public,” the letter stated. Signers include Amazon Employees for Climate Justice, Public Citizen, and Alphabet Workers Union.
Background and Context
The letter’s signatories argue that states’ actions on AI have attempted to protect residents from ‘the risks posed by unregulated or inadequately governed AI technologies.’ They emphasize that trust is crucial for reaping AI’s benefits.
The debate comes amid a broader discussion over federal preemption for AI regulation, which several AI industry heads have pushed for as state laws create a patchwork of rules. The House Budget Committee voted to advance the sweeping tax bill, but it still needs a full chamber vote.
Related Developments
The issue is part of a larger conversation about AI regulation and its implications for the tech sector. Other recent developments include:
- Elon Musk’s comments on AI and Tesla’s future
- Google’s plans to open AI models to developers
- Senate consideration of stablecoin legislation
As the bill moves forward, the debate over AI regulation is likely to continue, with significant implications for the tech industry and beyond.