Democrats are pushing back hard against a proposed congressional ban that would prevent U.S. states from enacting their own AI regulations. The fight reignited after President Trump and some Republicans called for a moratorium, arguing that too many state laws could stifle AI innovation and undercut national competitiveness.
Senator Jack Reed (D-RI) has emerged as a key figure in this battle. Reed argues that states must retain the ability to regulate AI because Congress has yet to pass comprehensive federal legislation. According to him, state governments are better equipped to respond quickly to AI risks where federal action has lagged.
The controversy centers on a provision that could be inserted into the must-pass defense policy bill, which Democrats say would block states from implementing AI laws for years. Reed and others view this as a “red line” in negotiations, warning that such a moratorium would strip local governments of vital tools to protect their citizens.
This effort reflects a broader concern among Democrats: without state-level regulation, there may be no meaningful oversight of AI. They argue that states serve as “laboratories of democracy,” able to test and enforce safeguards — especially as AI grows more pervasive and powerful.
