Located deep inside the House’s “Big, Beautiful Bill,” which encompasses much of President Donald Trump’s agenda, is a provision that bars states from regulating AI, but it’s not something all Republicans support.
The $500 million provision, posted on social media, also empowers the Commerce Secretary to replace existing government IT systems with state-of-the-art commercial AI systems that also help increase government response times and efficiency.
The ban on state regulation of AI is for 10 years, the provision notes.
The measure was included in a section ordering the Commerce Department to allocate funds to “modernize and secure federal information technology systems through the deployment of commercial artificial intelligence.”
Not all Republicans are on board with the provision, however, including some who have already voted for the House version but who now say they will oppose the bill once it passes the Senate if the AI provision isn’t removed.
“Full transparency, I did not know about this section on pages 278-279 of the OBBB that strips states of the right to make laws or regulate AI for 10 years,” Rep. Marjorie Taylor Greene wrote Tuesday in a post on the social platform X. “I am adamantly OPPOSED to this and it is a violation of state rights and I would have voted NO if I had known this was in there.”
“We have no idea what AI will be capable of in the next 10 years and giving it free rein and tying states hands is potentially dangerous,” the Georgia Republican added.
Greene has stated she will not support the bill when it returns to the House for final approval unless a specific provision is removed, creating new challenges for House GOP leadership, The Hill reported.
With Republicans holding only a narrow majority, they can afford to lose just three votes on any party-line legislation. When the bill initially passed the House last month, two Republicans—Reps. Thomas Massie (Ky.) and Warren Davidson (Ohio)—voted against it, further tightening the margin for GOP leaders.
“We should be reducing federal power and preserving state power,” she said. “Not the other way around. Especially with rapidly developing AI that even the experts warn they have no idea what it may be capable of.”
The legislation seeks to extend the Trump-era 2017 tax cuts, increase funding for border security and defense, and reduce wasteful spending on programs like food assistance and Medicaid.
Supporters of the AI provision argue that a patchwork of varying state laws creates confusion and imposes burdens on technology companies trying to innovate across different regions of the country, The Hill reported.
While several House Republicans supported the measure, some emphasized the need to establish a federal framework to supersede conflicting state regulations.
Several Democrats and tech watchdog groups have raised concerns that implementing a federal framework could take too long and potentially compromise the safety of AI systems.
Earlier Tuesday, a coalition of 260 state lawmakers sent a letter to members of the House and Senate, warning that the proposed AI provision would “undermine ongoing work in the states” aimed at addressing the risks and impacts of emerging technology, The Hill noted.
Some senators are also warning the provision may not pass the Byrd Rule, a procedural rule prohibiting “extraneous matters” from being included in reconciliation packages. This includes provisions that do not “change outlays or revenues,” the outlet added.
The Hill noted that the Senate parliamentarian will determine whether the AI provision violates the Byrd rule. If the determination is made, it’s unclear how the GOP-controlled chamber will respond.
