The Trump administration's proposed tax bill includes a provision that would impose a 10-year halt on states enforcing their own AI regulations, linking this suspension to federal funding for broadband access. Under this rule, states trying to regulate AI would risk losing crucial financial support from the $42 billion Broadband Equity, Access, and Deployment (BEAD) program. This legislative push raises concerns that states like New York, Texas, and Utah will be forced to choose between enforcing AI safety measures and accessing federal funding for internet expansion, leading to potential risks to residents' protections against AI flaws.
States like New York, Texas, and Utah would all have to choose between protecting their residents against faulty AI and billions in funding to help expand broadband access across their state.
If passed, the rule would both constitutionally prohibit states from enforcing AI legislation and put often critical funding for internet access at risk.
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