Trump Tax Bill’s Attempt At Banning AI Regulation Across 50 States Faces Bipartisan Fallout

In a letter to the House and Senate, a group of 260 lawmakers has called out the provisions of the tax bill aimed at restricting AI regulation for 10 years.

A provision within President Donald Trump’s tax bill that bans all 50 states from regulating artificial intelligence (AI) technology has sparked bipartisan backlash ahead of a Senate vote on July 4.

In a letter to the House and Senate, 260 lawmakers have called out the provisions of the tax bill that would restrict AI regulation for a period of 10 years.

The lawmakers called the AI regulation ban provision “sweeping” and “overreaching,” undoing the laws passed by elected officials in several states to address issues related to AI technology.

“Given the long absence of federal action to address privacy and social media harms, barring all state and local AI laws until Congress acts threatens to set back policymaking and undermine existing enforcement on these issues,” the lawmakers wrote in the letter.

Representative Marjorie Taylor Greene also voiced her concerns about the clauses limiting the regulation of AI by states, saying that it’s not known what capabilities AI will have in 10 years, in a post on X.

“Giving it free rein and tying states’ hands is potentially dangerous,” she said.

At the same time, Senator Edward Markey said these provisions are “not serious.”

“When my Republican colleagues are ready to have a serious conversation about AI regulation, my door is open. But this backdoor AI moratorium is not serious. It’s not responsible. And it’s not acceptable,” he said.

Meanwhile, the SPDR S&P 500 ETF (SPY), which represents the S&P 500 index, was up 0.45% at the time of writing.

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