House Republicans have inserted a provision into their signature tax bill that would impose a 10-year moratorium on state and local AI regulations. The clause, discovered on April 24, 2026, would effectively strip states of their authority to regulate artificial intelligence systems, consolidating all regulatory power at the federal level.

The Provision and Its Scope

The provision, titled the 'AI Innovation and Competitiveness Act,' would prevent any state or locality from enacting, enforcing, or maintaining any law that restricts, limits, or regulates AI systems. It would effectively nullify existing state AI laws including New York's RAISE Act, California's proposed AI transparency requirements, and Illinois's AI bias audit mandate.

Data Visualization

State AI Laws Affected by Proposed Federal Preemption

New YorkCaliforniaIllinois00.751.52.253
  • Existing Laws
  • Proposed Laws
States with active or proposed AI regulations that would be preempted

"This isn't about innovation — it's about corporate immunity. States have a responsibility to protect their citizens from algorithmic discrimination. Federal preemption strips that responsibility away."

— Consumer Advocacy Coalition