AI Regulation Ban Opposed by Over 140 Organizations

## Dozens of Organizations Push Back Against Bill That Would Ban All AI Regulation On May 22, 2025, the U.S. House of Representatives passed a contentious provision within the federal budget reconciliation bill that would impose a 10-year ban on state and local governments from passing or enforcing laws regulating artificial intelligence (AI)[1]. This move has sparked significant opposition from over 140 organizations, including EPIC (Electronic Privacy Information Center), which argue that such a ban would undermine efforts to protect consumers and residents from AI-related harms[2]. The proposed ban is part of the "One Big Beautiful Bill" Act, which narrowly passed with a vote of 214-215[3]. Critics argue that this moratorium would hinder states' ability to address emerging AI threats, such as deepfakes, data misuse, and algorithmic discrimination, effectively leaving communities vulnerable to unchecked AI risks[1][2]. The National Conference of State Legislatures (NCSL) has also expressed strong opposition, emphasizing the importance of state-level regulatory experimentation in the absence of comprehensive federal AI legislation[1]. ### Historical Context and Background The push for AI regulation has been ongoing, with states often taking the lead in developing thoughtful frameworks for AI governance. Maryland, for example, has enacted laws to combat deepfakes and protect consumer data[1]. However, the lack of federal standards has left a regulatory vacuum, prompting states to act independently. This decentralized approach has allowed for diverse regulatory models, which can be beneficial for testing and refining AI policies[1]. ### Current Developments and Breakthroughs The recent House vote marks a significant development in the ongoing debate over AI regulation. The inclusion of this ban in the budget bill highlights the tension between federal and state authority in regulating AI. Proponents of the ban argue that it would provide a consistent national framework for AI development, while opponents see it as an overreach that could stifle innovation and leave communities unprotected[1][2]. ### Examples and Real-World Applications AI regulation is crucial in real-world applications, such as preventing AI-driven discrimination in hiring and ensuring transparency in AI decision-making systems. For instance, AI systems used in healthcare and finance require robust oversight to prevent misuse and ensure fairness. The proposed ban could limit the ability of states to implement these safeguards, potentially leading to increased risks of AI misuse[2]. ### Future Implications and Potential Outcomes If the ban is enacted, it could have far-reaching implications for AI development and deployment. It might allow tech companies to operate with less oversight, potentially leading to more rapid AI advancements but also increasing the risk of AI-related harms. Conversely, if the ban is rejected, states could continue to develop and refine their regulatory frameworks, potentially leading to more diverse and effective AI governance models across the U.S.[1][2]. ### Different Perspectives or Approaches Critics like Alan Butler, Executive Director at EPIC, argue that the ban would be a "gift to Big Tech," allowing them to avoid accountability for AI systems that can harm Americans[2]. On the other hand, supporters might see the ban as a way to avoid a patchwork of state laws that could hinder national AI innovation. However, the overwhelming opposition from organizations suggests that the ban is seen as more of a risk than a solution[2]. ### Real-World Applications and Impacts The impact of AI regulation extends beyond tech companies to affect daily life. For example, AI-powered systems are used in transportation, education, and healthcare, areas where regulatory oversight is crucial for safety and fairness. The proposed ban could limit the ability of states to ensure these systems operate ethically and effectively[1]. As the bill moves to the Senate for consideration, the debate over AI regulation continues to intensify. The outcome will have significant implications for how AI is developed and used across the U.S., shaping the future of technology governance in the country. **