In December 2025, lawmakers in Congress rejected a bid — backed by Donald J. Trump — to embed a nationwide prohibition on state‑level AI legislation into the annual defense bill. The proposed provision sought to prevent U.S. states from enacting or enforcing their own AI regulations for a period of several years.
The move to block state laws was widely supported by AI industry leaders and some federal policymakers who argued that a patchwork of state-level rules would hinder innovation, economic competitiveness, and national coordination on AI. However, the effort met resistance not only from Democrats and consumer‑protection advocates — who warned that it would strip states of the ability to protect citizens from AI harms (bias, surveillance, deep‑fakes, etc.) — but also from a noticeable faction within the Republican Party.
In the end, the preemption provision was dropped from the bill after bipartisan pushback, preserving the states’ right to pass their own regulations on AI for now. This outcome has been hailed by consumer‑rights and privacy groups as a victory for local autonomy and public accountability in the face of rapid AI deployment.
Still, the battle isn’t over — proponents of federal preemption have signaled they may attempt to re‑introduce similar measures via other bills or executive actions. As of now, the result reflects a fragile balance between national ambitions for AI growth and the protection of state-level governance and consumer safeguards.
