⚖️ AI regulation debate in the US

Author

Liam Gill
June 14, 2025

In partnership with

The Fight Over AI Regulation in the States

A key provision in President Trump’s proposed tax and spending package — dubbed the "One Big Beautiful Bill Act" — has stirred controversy over how artificial intelligence (AI) should be regulated in the U.S. The original House version of the bill included a sweeping 10-year federal moratorium on any state-level regulation of AI, including enforcement of current and future laws. However, pushback from some Republican senators and House members, including Rep. Marjorie Taylor Greene, has led the Senate Commerce Committee to revise the language. Instead of a blanket ban, the Senate version now ties a state’s ability to regulate AI to its eligibility for federal broadband funding, effectively coercing states into compliance without outright banning their regulatory authority.

Your Wedding Tux Is Free (Seriously)

Getting married shouldn't mean having to settle for an ill-fitting tux from a fluorescent-lit warehouse. The Black Tux delivers premium tuxedos and suits that actually fit—whether you rent or buy—with free home try-ons so you're confident on the biggest day of your life. Or visit one of our showrooms nationwide for hands-on styling.

Here's the best part: when your groomsmen order with us, your wedding look is completely free. High-end style, perfect fit, zero cost–plus free nationwide shipping for your entire crew.

Centralized Innovation vs. State Rights

The debate highlights a deepening fault line between federal efforts to centralize AI policy and state-level desires to retain oversight over emerging technology. Proponents of the moratorium argue that a patchwork of state laws could create compliance nightmares for companies operating across jurisdictions, hampering innovation and investment. Critics — including Senators Marsha Blackburn and Josh Hawley — argue that until meaningful federal AI protections exist, stripping states of their regulatory powers is premature and potentially dangerous. Moreover, the provision risks failing the Byrd Rule, which restricts unrelated policy items from being included in budget reconciliation bills, adding procedural uncertainty.

Startups Should Prepare for a Messy AI Policy Landscape

Startups in the AI space should brace for prolonged uncertainty. While a national regulatory framework would offer consistency, the current political friction suggests it could be years before such clarity arrives. Founders should track both state and federal developments and avoid relying on any near-term federal preemption. If you operate in or sell to multiple states, consider building compliance flexibility into your product and data governance practices now. And if your startup touches broadband infrastructure or partners with entities that do, be aware of how funding conditions may subtly impose federal regulatory preferences. In this environment, regulatory due diligence isn’t optional — it’s part of your business strategy.

In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more

Newsletter supported by:

Start learning AI in 2025

Keeping up with AI is hard – we get it!

That’s why over 1M professionals read Superhuman AI to stay ahead.

  • Get daily AI news, tools, and tutorials

  • Learn new AI skills you can use at work in 3 mins a day

  • Become 10X more productive