### House Republicans Push for AI Regulation Freeze, Sparking Backlash from States

In a surprising move, House Republicans have introduced a clause in their latest tax bill that would prevent states and local governments from regulating artificial intelligence (AI) for the next decade. This unexpected addition to the tax legislation has garnered significant attention from both tech industry observers and state governments.

The provision, slipped into the House Energy and Commerce Committee's extensive markup, promises substantial benefits for the AI industry. Tech companies have been advocating for uniform, minimal regulation as they continue to develop technologies with far-reaching implications for society. However, the clause’s future is uncertain, as it faces potential challenges in the Senate. Procedural rules there, particularly the Byrd Rule, could block its inclusion by demanding that budget reconciliation bills focus primarily on fiscal matters rather than policy changes.

Senator John Cornyn of Texas expressed skepticism about the provision’s prospects, noting that it appeared more like a policy change than a budgetary measure. Both Democratic and Republican senators have shown a willingness to regulate AI but have yet to make significant headway, despite numerous bills being introduced.

One exception is a bipartisan bill expected to be signed by President Donald Trump, imposing stricter penalties on sharing non-consensual intimate images, including those generated by AI.

Proponents argue that AI transcends state borders, necessitating a federal regulatory framework to avoid a disjointed approach across 50 states. Ohio Republican Senator Bernie Moreno highlighted this need but also doubted the House’s proposal could clear Senate procedures. The House-proposed provision explicitly states that no state or local entity may regulate AI models or systems, potentially affecting everything from commercial AI like ChatGPT to AI in employment and housing decisions.

The proposal has ignited significant pushback. Democratic California State Senator Scott Wiener, who previously authored AI safety legislation, criticized the federal initiative. Wiener and other critics argue that Congress has failed to enact meaningful AI regulation while simultaneously attempting to block state efforts.

A bipartisan group of state attorneys general also voiced their opposition. South Carolina’s Attorney General Alan Wilson, a Republican, condemned the federal move as overreach, asserting it would undermine local efforts to balance AI’s opportunities and risks.

Despite the controversy, AI industry leaders continue their research and development, advocating for a federal framework that allows rapid innovation to maintain a competitive edge over international rivals, particularly from China. Sam Altman, CEO of OpenAI, emphasized the drawbacks of state-by-state regulations, advocating for a single, comprehensible federal strategy.

The debate over AI regulation's future continues, as political leaders and tech executives discuss how best to balance innovation with necessary safeguards.