State attorneys general and activists are opposing a provision in President Trump's budget proposal that seeks to impose a 10-year moratorium on states regulating artificial intelligence (AI). This provision, found deep within the bill, threatens to invalidate hundreds of state laws while providing limited exceptions, primarily aimed at facilitating AI operation. AGs across the country are alarmed, noting that it would obstruct consumer rights and eliminate states' abilities to respond to AI-related harms, which have become increasingly prevalent. With 31 states already having enacted AI regulations in 2024, the implications could lead to regulatory chaos and consumer vulnerabilities.
State AGs predict chaos should the provision make it to passage and imply it could harm consumer rights and state regulatory functions.
State AGs and activists are urging Congress to reconsider a budget provision that would strip states of their authority to regulate AI.
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