House Republicans just pulled their latest attempt to ban state AI regulations from the annual defense bill after hitting a wall of bipartisan resistance. The move marks the second major failure this year for tech industry-backed efforts to prevent states from regulating artificial intelligence, highlighting the growing political divide over who should control AI oversight in America.
The tech industry's push to prevent states from regulating AI just hit another roadblock on Capitol Hill. House Majority Leader Steve Scalise confirmed Tuesday that Republicans removed their provision to ban state AI regulations from the National Defense Authorization Act after facing resistance from both parties.
"We'll look for other places" to include the measure, Scalise told reporters according to The Hill, acknowledging the defense bill wasn't the right venue for such sweeping regulatory changes.
This marks the second major defeat this year for industry efforts to create federal preemption of state AI laws. Republicans tried inserting a 10-year moratorium on state AI regulations into Trump's tax and spending package earlier this year, only to see it stripped out in July after fierce bipartisan opposition.
The pattern reveals a fundamental split over AI governance that cuts across party lines. While Silicon Valley champions federal preemption as necessary to prevent what they call an "unworkable patchwork" of conflicting state rules that could stifle innovation, critics see state regulations as the only meaningful check on Big Tech's AI development.
The stakes couldn't be higher. States like California have moved aggressively on AI oversight, with Governor Gavin Newsom signing multiple bills targeting deepfakes, automated hiring systems, and AI safety requirements. OpenAI, Google, and other major AI companies have lobbied extensively against such measures, arguing they create compliance nightmares that slow down development.
But the opposition isn't just coming from progressive Democrats. Conservative lawmakers have expressed concerns about effectively handing regulatory control to tech companies at a time when public trust in Silicon Valley remains low. The bipartisan nature of the resistance suggests deeper skepticism about big tech self-regulation than industry lobbyists anticipated.
Trump's position adds another layer of complexity. The president-elect has publicly supported blocking state AI laws, viewing federal preemption as part of his broader deregulatory agenda. revealed his administration was considering bypassing Congress entirely and using executive powers to override state regulations.
