More than 140 organizations are calling on House leaders to remove a controversial provision in President Trump’s sweeping tax and spending bill that would block states from regulating artificial intelligence for the next decade. The proposal, included in what Trump has dubbed his “one, big beautiful” bill, has sparked concern among civil rights groups, tech workers, and legal experts who argue it opens the door to unchecked AI development.
In a letter sent Monday to House Speaker Mike Johnson (R-La.), Minority Leader Hakeem Jeffries (D-N.Y.), and other congressional leaders, the coalition warned that the 10-year moratorium would allow companies to design harmful AI systems with no accountability. “This moratorium would mean that even if a company deliberately designs an algorithm that causes foreseeable harm — regardless of how intentional or egregious the misconduct or how devastating the consequences — the company making that bad tech would be unaccountable to lawmakers and the public,” the letter stated.
The signatories include a diverse group of organizations such as Amazon Employees for Climate Justice, the Alphabet Workers Union, Public Citizen, academic institutions, and civil rights advocates. They argue that removing state-level authority over AI systems would weaken oversight at a time when Congress has yet to pass comprehensive federal legislation on the technology.
The provision in question would bar states from creating or enforcing laws that govern the design, performance, data handling, or civil liability related to AI models and automated systems. It includes limited exemptions for laws that streamline administrative processes but would override any legislation imposing substantive regulatory or legal responsibilities on AI developers.
The letter emphasizes that states have historically played a crucial role in safeguarding public welfare during periods of rapid technological advancement, such as during the automobile and industrial revolutions. “Protecting people from being harmed by new technologies, including by holding companies accountable when they cause harm, ultimately spurs innovation and adoption of new technologies,” the coalition wrote.
The House Budget Committee advanced the broader tax and spending package on Sunday, but the bill still awaits a full vote in the House. Even if it passes, the provision could face hurdles in the Senate, where procedural constraints like the Byrd Rule may prevent its inclusion in the final version. The rule bars “extraneous matters” in reconciliation bills that do not pertain directly to the federal budget.
Supporters of federal preemption argue that a unified approach is necessary to avoid a patchwork of conflicting state laws. However, critics counter that in the absence of federal action, state governments have stepped in to protect citizens from potential harms including algorithmic discrimination, data misuse, and safety risks associated with unregulated AI systems.
