The White House Unleashes Unchecked AI on the World

In a bold and unexpected move, House Republicans have tucked a sweeping ten-year ban on state-level artificial intelligence regulation into their latest tax bill — sparking immediate backlash from state governments, legal experts, and AI policy advocates.

The AI provision, discreetly inserted into the House Energy and Commerce Committee’s markup of the GOP’s “big, beautiful” tax plan, would prohibit states and municipalities from enforcing any laws regulating AI models, systems, or automated decision-making tools. If enacted, the clause would effectively centralize AI governance at the federal level, sidelining state efforts to regulate everything from hiring algorithms and automated credit scoring to AI-generated political deepfakes.

A Major Win for Big AI — If It Survives the Senate

The provision marks a significant potential victory for major tech firms, which have long lobbied for a uniform, light-touch regulatory framework as they race to develop AI systems poised to reshape industries and daily life. AI leaders, including OpenAI CEO Sam Altman and Microsoft President Brad Smith, have voiced concerns over a fragmented state-by-state regulatory patchwork, advocating instead for a streamlined federal approach.

“I think having one federal approach focused on light touch and an even playing field sounds great to me,” Altman told senators in a recent hearing. Microsoft’s Smith echoed the sentiment, suggesting a federal lead could foster AI innovation much like it did for early internet commerce.

A Steep Climb in the Senate

Despite industry enthusiasm, the AI clause faces significant hurdles in the Senate. Procedural rules under the Byrd Rule require tax bills to focus squarely on budget-related matters — and inserting broad technology policy could disqualify the provision. Even senior Republicans like Sen. John Cornyn (R-TX) cast doubt on its survival.

“That sounds to me like a policy change,” Cornyn noted. “I think it is unlikely to make it.”

The Senate remains deeply divided on AI oversight. While dozens of AI-related bills — some bipartisan — have been introduced, meaningful progress has been scarce. An exception is a bipartisan measure addressing AI-generated revenge porn, expected to be signed by President Donald Trump next week — reports the AP news agency.

State Officials Push Back

State leaders were quick to condemn the federal overreach. California state Sen. Scott Wiener called the move “truly gross,” while a bipartisan coalition of state attorneys general voiced strong opposition, arguing it would prevent them from protecting citizens against the risks of AI systems already affecting jobs, housing, and public utilities.

“Congress wants to tie our hands and push a one-size-fits-all mandate from Washington without a clear direction,” said South Carolina Attorney General Alan Wilson.

The Bigger Picture: AI’s Regulatory Crossroads

The controversy underscores a broader clash over AI regulation in the United States. While the AI industry accelerates deployment of advanced systems, governments at all levels are scrambling to address risks like algorithmic bias, misinformation, and privacy violations. The GOP proposal reflects a growing federal push — particularly among Republicans — to prioritize business-friendly AI policies and avoid restrictive state-by-state rules.