Policy
House Republicans Propose 10-Year Ban on State AI Regulations in Sweeping Federal Preemption
House Republicans embed a controversial provision in their tax bill that would ban states and localities from regulating AI for a full decade, triggering immediate backlash from state officials.
By Michael C ·
House Republicans have inserted a provision into their signature tax bill that would impose a 10-year moratorium on state and local AI regulations. The clause, discovered on April 24, 2026, would effectively strip states of their authority to regulate artificial intelligence systems, consolidating all regulatory power at the federal level.
The Provision and Its Scope
The provision, titled the 'AI Innovation and Competitiveness Act,' would prevent any state or locality from enacting, enforcing, or maintaining any law that restricts, limits, or regulates AI systems. It would effectively nullify existing state AI laws including New York's RAISE Act, California's proposed AI transparency requirements, and Illinois's AI bias audit mandate.
This isn't about innovation — it's about corporate immunity. States have a responsibility to protect their citizens from algorithmic discrimination. Federal preemption strips that responsibility away.
Consumer Advocacy Coalition