United States of America: California Privacy Protection Agency issued a response opposing federal moratorium on state Artificial Intelligence privacy laws in budget reconciliation bill

On 12 May 2025, the California Privacy Protection Agency (CPPA) submitted a response to the United States House Energy and Commerce Committee opposing Section 43201(c) and (d) of the Budget Reconciliation Bill. The CPPA states that the provisions would establish a federal moratorium on the enforcement of state laws regulating artificial intelligence and automated decision-making systems. Furthermore, the measure would apply to technology companies operating under state-level privacy frameworks, including the California Consumer Privacy Act (CCPA), and would override existing consumer rights related to access and opt-out of automated processing. The CPPA argued that the proposal is not budget-relevant, undermines voter-approved state authority, and disrupts the established balance between federal and state privacy legislation. The Agency called on Congress to remove the provision and uphold the principle of setting federal baselines while preserving states’ ability to adopt stronger consumer protections.