California and other states are rushing to regulate the development of AI, but a provision in House Republicans’ budget reconciliation bill could stop them from doing so for a decade.
The section of the bill from the House Committee on Energy and Commerce contains a provision that could stop states and local governments from enforcing “any law or regulation” on most AI software for the next 10 years. If enacted, this measure would freeze efforts in states including California and Colorado to set guardrails for the development and deployment of AI software.
Republicans argue the moratorium is necessary to give Congress time to pass a comprehensive policy governing AI and avoid a patchwork of policies. And while even critics of the moratorium agree a federal law would be better than state-by-state regulations on AI, they’re skeptical that policy is coming quickly enough to address a ballooning industry.