Tech safety groups slam House GOP proposal for 10-year ban on state AI regulation

A host of tech safety groups and at least one Democrat are blasting House Republicans' proposal to block states from regulating artificial intelligence (AI) models for the next 10 years, arguing consumers will be less protected.

Rep. Jan Schakowsky (D-Ill.), the ranking member on the Commerce, Manufacturing and Trade Subcommittee, said on Monday the proposal is a "giant gift to Big Tech."

“The Republicans’ 10-year ban on the enforcement of state laws protecting consumers from potential dangers of new artificial intelligence systems gives Big Tech free reign to take advantage of children and families," she wrote, adding the proposal, "shows that Republicans care more about profits than people."

The Republican tax bill, released by the House Energy and Commerce Committee on Sunday night, proposes barring states from enforcing laws or regulations governing AI models, AI systems or automated decision systems.

The proposal includes some exemptions for laws that intend to “remove legal impediments” or “facilitate the deployment or operation” of AI systems, as well as those that seek to “streamline licensing, permitting, routing, zoning, procurement or reporting procedures.” 

State laws that do not impose any substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirement” on AI systems would also be allowed under the proposal.

Schakowsky claimed the proposal would give AI developers a green light to "ignore consumer privacy protections spread," let AI-generated deepfakes spread, while allowing them to "profile and deceive" consumers.

The bill underscores the Trump administration's focus on AI innovation and acceleration over regulation. President Trump has rolled back various Biden-era AI policies that placed guardrails on AI developers, arguing these were obstacles to the fast development of AI.

The Tech Oversight Project, a nonprofit tech watchdog group, pointed out Congress has failed to pass most AI-related legislation, prompting action on the state level.

“The so-called ‘state’s rights’ party is trying to slip a provision into the reconciliation package that will kneecap states’ ability to protect people and children from proven AI harms and scams. It’s not only hypocritical, it’s a massive handout to Big Tech,” Tech Oversight Project Executive Director Sacha Haworth said.

“While Congress has struggled to establish AI safeguards, states are leading the charge in tackling AI’s worst use cases, and it comes as no surprise that Big Tech is trying to stop that effort dead in its tracks," Haworth added.

It comes amid a broader debate over federal preemption for AI regulation, which several AI industry heads have pushed for as state laws create a patchwork of rules to follow.

Last week, OpenAI CEO Sam Altman testified before Congress, where he expressed support for "one federal framework," and expressed concerns with a "burdensome" state-by-state approach.

The Open Markets Institute, a DC-based think tank advocating against monopolies, called it a "stunning assault on state sovereignty."

“This is the broligarchy in action: billionaires and lobbyists writing the laws to lock in their dominance, at the direct expense of democratic oversight, with no new rules, no obligations, and no accountability allowed. This is not innovation protection—it's a corporate coup," wrote Courtney C. Radsch, director of the Center for Journalism and Liberty at Open Markets Institute.

U.S. states considered nearly 700 legislative proposals last year, according to an analysis from the Business Software Alliance.

Nonprofit Consumer Reports also came out against the proposal, pointing to the potential dangers of AI, such as sexually explicit deepfakes.

"This incredibly broad preemption would prevent states from taking action to deal with all sorts of harms, from non-consensual intimate AI images, audio, and video, to AI-driven threats to critical infrastructure or market manipulation," said Grace Geyde, a policy analyst for Consumer Reports, "to protecting AI whistleblowers, to assessing high-risk AI decision-making systems for bias or other errors, to simply requiring AI chatbots to disclose that they aren’t human.”

Commerce and Energy Committee Chair Brett Guthrie (R-Ky.) defended the committee's reconciliation proposal later Monday.

"This reconciliation is a win for Americans in every part of the country, and it’s a shame Democrats are intentionally reflexively opposing commonsense policies to strengthen the program," he wrote.

Meanwhile, some tech industry groups celebrated the proposal.

NetChoice, the trade association representing some of the largest tech firms in the world like Google, Amazon and Meta, said the "commendable" proposal will help American "stay first in the research and development" of emerging tech.

“America can’t lead the world in new technologies like AI if we tie the hands of innovators with overwhelming red tape before they can even get off the ground," said NetChoice Director of Policy Pat Hedger.