California Lawmakers Push Back on Federal AI Regulation Ban
Created Date: May 28, 2025
SACRAMENTO, CALIF. – Given the state’s role as home to many leading AI companies, a bipartisan coalition of California legislators is urging Congress to strike a little-noticed provision from the sweeping federal tax package that would block states and local governments from regulating artificial intelligence (AI) for the next decade.
The two-sentence-long provision they oppose appears deep within the “One Big Beautiful Bill Act”, a 1,116-page Republican-led tax bill that passed the House by a single vote in the early morning hours of May 22.
If enacted, the provision would prohibit states, cities, and counties from passing or enforcing “any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems” until 2035.
Legislative Opposition
In a letter to congressional leaders, 35 California lawmakers, including 32 Democrats and three Republicans, warned that the two-sentence AI provision threatens public safety, undermines innovation, and violates the principles of federalism.
They stated: “The proposed moratorium, which bears no relationship to the budget, jeopardizes the safety and rights of American citizens, fails to uphold the United States’ legacy of fostering innovation through responsible regulation, and undermines state sovereignty.”
California Assemblymember Rebecca Bauer-Kahan (D-Orinda-16), lead author of the letter, emphasized that the provision goes too far but reassured that the state would not implement measures that could harm a vital industry. “We’re not going to do anything that is going to tank an industry that is so important to our economy,” she noted.
Governor’s Stance
California Governor Gavin Newsom also opposes the federal preemption proposal. A spokesperson stated, “With this proposal, Congressional Republicans are endangering laws in California that ban AI-generated child pornography, deepfake porn, and robocall scams against the elderly.”
California’s Leadership in AI Regulation
As the world’s fifth-largest economy, California is a national leader in AI regulation, with 22 laws related to the technology, according to Stanford University’s 2025 AI Index. This positions California ahead of states like Utah and Maryland, which have 12 and 8 laws, respectively.
However, in September 2024, Governor Newsom vetoed a “sweeping” AI safety bill that would have forced large companies to conduct risk assessments on their AI models, citing excessive standards as a concern.
Recent Legislative Developments
Despite the veto, California has enacted measures to combat deepfake election content. The laws mandate large online platforms to remove or label digitally altered election content during specified periods and expand the timeframe for prohibiting deceptive AI-generated election content.
In October 2024, a federal judge issued a temporary injunction on one of the state’s new AI laws, citing a vague definition of “harmful” depictions as a potential threat to constitutionally protected speech.
Concerns from State Attorneys General
Attorneys general from 37 states, including 15 Republicans, have expressed concern that a blanket federal ban on state laws would interfere with active state efforts to ensure accountability in the use of AI.
House Energy and Commerce Committee ranking members criticized the AI provisions, stating, “The Republicans’ 10-year ban on the enforcement of state laws protecting consumers from potential dangers of new artificial intelligence systems gives Big Tech free rein to take advantage of children and families.”
Industry Perspectives
The Chamber of Commerce supports the provision, while 140 groups, including the Brennan Center for Justice and various advocacy organizations, signed a letter opposing it.
Representative Jay Obernolte (R-CA-23), a computer scientist, noted that while no one believes AI should be unregulated, it should be Congress that regulates it, not the states. He called for comprehensive AI legislation to establish a federal framework.
Potential Challenges Ahead
The clause may face procedural obstacles in the Senate, as the Senate parliamentarian could remove the AI language under the Byrd Rule, which prohibits non-budgetary policy changes.
As of 2024, US federal agencies introduced 59 AI-related regulations, more than double the number in 2023. A growing number of states have also enacted laws regulating deepfakes in elections.
For independent voters prioritizing innovation, safe elections, and accountability, the issue raises key questions: Should Washington, D.C. block state and local regulation even before establishing a national standard? Or does such a move sideline legitimate state efforts to address rapidly evolving technology?
