President Donald Trump’s massive bill package, dubbed the ‘Big Beautiful Bill,’ contains a proposal that could significantly waylay a burgeoning movement to regulate artificial intelligence on the state level.

The ban is tucked into a section of the bill that would allocate $500 million over the next 10 years to modernize government systems with the help of AI and automation technologies. The ban would not only prevent new state-led regulations of AI but would also block dozens of states from enforcing preexisting AI regulations and oversight structures.

The 1,000-plus-page legislation pushed forward by Republicans passed in the House by just one vote on May 22, sending it off to the Senate. Though Republicans hope to finalize the tax and policy bill by the end of July in order to avoid a debt default, it’s still a ways off from becoming law, as the GOP navigates a slim majority amid party infighting over several key elements of the bill. Though misgivings center on Medicaid, tax cuts and government spending, a few high-profile Republican lawmakers have signaled the proposed AI regulation ban is also a point of friction.

Regulation of artificial intelligence is often likened to a wild west of sorts, as governments across the country and the globe race to keep up with the rapidly evolving technology. AI itself has proved to be an enticing tool for public and private organizations – so much so that adoption of the tech far outpaces many governments’ ability to implement laws and frameworks meant to prevent misuse. As it stands, there is no centralized federal oversight of AI, leaving states to attempt to regulate the technology through an uneven patchwork of legislation.

Under President Joe Biden’s administration, the White House introduced a now-defunct blueprint for an AI Bill of Rights, taking a cue from the European Union’s similarly named document. It directed state agencies to evaluate current uses and potential impacts of AI, evaluate potential AI-fueled risks and encourage state employee training on the subject. In its place is a new Trump-led AI framework, prioritizing accelerating AI innovation. The Trump administration’s stance on regulation so far largely aligns with that of companies and much of the tech industry, who argue that regulation would stymie innovation.

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