A ban on state AI laws could smash Big Tech’s legal guardrails

Senate Commerce Republicans have kept a ten year moratorium on state AI laws in their latest version of President Donald Trump's massive budget package. And a growing number of lawmakers and civil society groups warn that its broad language could put consumer protections on the chopping block.

Republicans who support the provision, which the House cleared as part of its "One Big Beautiful Bill Act," say it will help ensure AI companies aren't bogged down by a complicated patchwork of regulations. But opponents warn that should it survive a vote and a congressional rule that might prohibit it, Big Tech companies could be exempted from state legal guardrails for years to come, without any promise of federal standards to take their place.

"What this moratorium does is prevent every state in the country from having basic regulations to protect workers and to protect consumers," Rep. Ro Khanna (D-CA), whose district includes Silicon Valley, tells The Verge in an interview. He warns that as written, the language included in the House-passed budget reconciliation package could restrict state laws that attempt to regulate social media companies, prevent algorithmic rent discrimination, …

Read the full story at The Verge.