Congressional Proposal Would Block States From Setting Their Own AI Rules

A bipartisan bill introduced in the U.S. House this week aims to stop states from writing their own rules for how artificial intelligence models are developed. The draft legislation, released Thursday by Democratic Representative Lori Trahan and Republican Representative Jay Obernolte, would forbid state-level laws that target the development of AI models themselves—meaning states couldn't require companies to test their AI systems before releasing them to the public.

The proposal doesn't prevent states from regulating how AI is used. Its goal, the lawmakers said in a joint statement, is to create a national standard that protects Americans, supports innovation, and keeps the U.S. ahead in shaping the technology.

“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.

Consumer advocacy group Public Citizen slammed the bill, arguing it leaves oversight to a federal government that has repeatedly failed to pass meaningful AI protections. The group noted the measure does not address algorithmic bias, housing or job discrimination, fraud, mental health risks to young people, deepfake exploitation, or the growing concentration of market power.

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

Congress has struggled for years to pass AI safety legislation. The White House urged lawmakers in March to pre-empt state rules, and President Trump recently signed an order asking leading AI developers to voluntarily submit their most advanced models for government cybersecurity testing before public release. Under that order, federal agencies get up to 30 days to test models before they go outside government.

The AI industry has been a major profit engine for tech. Chipmaker Nvidia has become the world's most valuable company, while Amazon, Meta, Alphabet, and Microsoft pour billions into the sector.