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House GOP-Backed “One Big, Beautiful Bill” Act Would Block State AI Regulation for 10 Years

Stephanie J Dorvil

House GOP-Backed “One Big, Beautiful Bill” Act Would Block State AI Regulation for 10 Years
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H.R. 1, which passed through the House of Representatives 215-214 on May 22, 2025, includes a provision titled “Moratorium” in Title IV, Subtitle C,  which prohibits, for a ten year period, any state from “limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce.”

This moratorium survived an amendment to strike its language during the initial Energy and Commerce Committee markup on May 14, 2025. Beyond the provisions specific to AI regulation, H.R. 1 would create far-reaching changes to health care, social programs, technology, taxes and education. 

There has been an explosion of proposed legislation at the state level focused on AI regulation, but a significant void of federal legislation or regulations that address AI governance and innovation. While the moratorium aims to stop the creation of a patchwork of potentially inconsistent state laws that could complicate advancements in AI at a national level, there is opposition against the moratorium in H.R. 1 because it may infringe upon the powers reserved for the States under the 10th Amendment. Furthermore, as H.R. 1’s provisions are considered by the Senate, there will be active debate about whether the moratorium language violates the “Byrd Rule” that guides the budget reconciliation process.  

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