Bipartisan Bill Aims to Block State-Level AI Rules, Sparking Debate Over Federal Oversight

A bipartisan pair of U.S. House lawmakers released draft legislation Thursday that would prevent states from regulating the development of artificial intelligence models—a move tech firms are cheering but consumer advocates are condemning as a dangerous power grab.

Representatives Lori Trahan (D-MA) and Jay Obernolte (R-CA) introduced the bill, which bars states from passing laws that “target artificial intelligence model development.” This means states could not require safety testing before AI models are released to the public. However, the draft explicitly allows states to regulate how the technology is actually used.

“We are releasing this draft to hear from stakeholders, experts, and the public so we can strengthen the legislation before it is formally introduced,” Obernolte said in a statement. The lawmakers aim to create a national framework that protects Americans while keeping the U.S. competitive in AI.

Congress has struggled for years to pass comprehensive AI safety legislation. Consumer advocacy group Public Citizen blasted the bill, warning it would leave oversight to a federal government that “has repeatedly failed to pass meaningful AI protections.” The group argued the bill ignores algorithmic discrimination, housing and employment bias, deepfake exploitation, and market concentration.

The Information Technology Industry Council, which represents major tech firms, praised the measure. “Congress must set a national standard that enables responsible AI development, deployment, and adoption across the American economy,” the group said.

The push for federal preemption gained momentum in March when the White House urged lawmakers to act. Earlier this week, President Donald Trump signed an executive order asking leading AI developers to voluntarily submit their most capable models for government cybersecurity testing before public release. Agencies would have up to 30 days to evaluate the models.

Trump also threatened last December to withhold federal broadband funding from states whose AI laws his administration deems harmful to American tech dominance. The AI sector has been a powerful profit engine, propelling chipmaker Nvidia to become the world’s largest company and driving massive investments from Amazon, Meta, Alphabet, and Microsoft.