Moratorium On State AI Regulation Draws Some GOP Fire, But Also Praise
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Both the House and Senate versions of the One Big Beautiful Bill Act include provisions to preempt … More state regulation of AI. getty As President Donald Trump and congressional Republicans seek to extend the Tax Cuts and Jobs Act’s (TCJA) personal income tax rate cuts as part of the One Big Beautiful Bill Act (OBBBA), how to deal with the state and local tax (SALT) deduction cap remains a key point of contention. The House-approved version of OBBBA raises the TCJA’s $10,000 per household SALT cap to $40,000 but the Senate proposal keeps it at $10,000. The SALT cap isn’t the only part of OBBBA that has divided some Republicans. Opponents of the TCJA’s SALT cap often accuse it of targeting blue states, which tend to have relatively higher tax burdens and are where most SALT beneficiaries live. The same criticism, however, cannot be leveled at the OBBBA provision prohibiting states from regulating artificial intelligence (AI), a proposal that has been the subject of some GOP criticism. Congresswoman Marjorie Taylor Greene (R-Ga.), for example, voted for OBBBA but has since derided the moratorium on state regulation of AI included in the bill. “This needs to be stripped out in the Senate,” Greene wrote about OBBBA’s AI preemption provision in a June 6 post on X. “When the OBBB comes back to the House for approval after Senate changes, I will not vote for it with this in it.” “We should be reducing federal power and preserving state power,” Greene added. “Not the other way around.” Neil Chilson, former chief technologist at the Federal Trade Commission, responded to the sentiment expressed by Greene in a June 10 X post: “A lot of ‘conservatives’ seem desperate to have California (a state that is having some difficulties governing itself right now) regulate…
Filed under: News - @ June 19, 2025 12:29 pm