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BUDGET bill passed by house last night does include a sneaky moratorium on AI regulation for 10 years.
House Republicans surprised tech industry watchers and outraged many state governments when they added a clause to Republicans’ signature “big, beautiful” tax bill that bans states and localities from regulating artificial intelligence for a decade.
The brief but consequential provision, tucked into the House Energy and Commerce Committee’s sweeping markup, would be a major boon to the AI industry, which has lobbied for uniform and light touch regulation as tech firms develop a technology they promise will transform society. “I don’t know whether it will pass the Byrd Rule,” said Sen. John Cornyn, R-Texas, referring to a provision that requires that all parts of a budget reconciliation bill, like the GOP plan, focus mainly on the budgetary matters rather than general policy aims. An exception is a bipartisan bill expected to be signed into law by President Donald Trump next week that would enact stricter penalties on the distribution of intimate “revenge porn” images, both real and AI-generated, without a person’s consent.
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