Overview

• The Budget Reconciliation bill includes a provision barring state and local governments from enforcing AI regulations for a decade, with limited exceptions for federal mandates and comparable non-AI laws.
• Representative Brett Guthrie (R-KY) introduced the measure, which critics argue undermines state autonomy and benefits technology companies.
• The moratorium would override existing state laws like California's AI transparency requirements and New York's bias audit mandate for AI hiring tools.
• Opponents, including Rep. Jan Schakowsky (D-IL) and advocacy groups, describe the provision as a giveaway to Big Tech, prioritizing corporate interests over consumer protections.
• Legal experts warn the broad language of the proposal could unintentionally affect other laws, including those related to product liability and medical malpractice.