The federal budget bill titled One Big Beautiful Bill aims to unharness artificial intelligence (AI) development in the U.S. The current draft of the bill, which has passed the House, proposes a 10-year moratorium on the enforcement of AI-related legislation by states or other entities. Specifically, it restricts the regulation of AI models, systems, or automated decision systems involved in interstate commerce.
Supporters believe the moratorium will encourage innovation and prevent a fragmented landscape of state AI laws, which are already emerging. However, opponents express concerns about the potential impact on existing state laws that regulate issues such as deepfakes and discrimination in automated hiring processes.
The ultimate outcome of this provision of the federal budget bill remains uncertain. However, if the budget bill passes with the moratorium, then it will take effect upon enactment.
Meanwhile, states continue to propose their own legislation to regulate AI in the workplace and other areas. Jackson Lewis will continue to monitor this and other related legislative developments.
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