AI Legal Watch: June 13

Congress Considers Moratorium on State-Level AI Regulation

Nick Palmieri

The U.S. House of Representatives has passed, as part of a larger omnibus budget bill, a 10 year moratorium on regulation of AI by the states. If passed by the Senate, this provision would be one of the most significant federal technology policy actions in years, providing a stark limitation on the ability of states to regulate "artificial intelligence models, artificial intelligence systems, or automated decision systems" for 10 years after enactment. Since the bill's passage in the House—and following commentary from various stakeholders on the adoption of a comprehensive moratorium—the Senate has proposed further revisions to the language of the moratorium. Specifically, rather than outright banning AI regulation by the states, the Senate's version would condition access to the $500 million in federal AI development funds on a state's agreement to refrain from imposing such regulations.