United States of America: House of Representatives passed Budget reconciliation Bill including moratorium on the enforcement of state and local laws regulating Artificial Intelligence

Description

House of Representatives passed Budget reconciliation Bill including moratorium on the enforcement of state and local laws regulating Artificial Intelligence

On 22 May 2025, the House of Representatives passed the Budget Reconciliation Bill that includes the Artificial Intelligence (AI) and Information Technology Modernisation initiative. The Bill includes a 10-year federal moratorium on the enforcement of state and local laws regulating such technologies. Exceptions are made for laws that facilitate AI deployment, streamline administrative procedures, or impose neutral, cost-based requirements comparable to those applied to non-AI systems. The Bill also allocates funding to the Department of Commerce to modernise federal IT infrastructure using commercial AI and automation tools to improve efficiency, replace legacy systems, and enhance cybersecurity. The Bill now goes to the Senate for consideration.

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Scope

Policy Area
Design and testing standards
Policy Instrument
Artificial Intelligence authority governance
Regulated Economic Activity
ML and AI development
Implementation Level
national
Government Branch
legislature
Government Body
parliament

Complete timeline of this policy change

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2025-05-11
under deliberation

On 11 May 2025, the House Republicans on the U.S. House Energy and Commerce Committee announced the…

2025-05-22
under deliberation

On 22 May 2025, the House of Representatives passed the Budget Reconciliation Bill that includes th…

2025-06-21
under deliberation

On 21 June 2025, the United States Senate Parliamentarian determined that the Budget reconciliation…

2025-06-25
under deliberation

On 25 June 2025, the Committee on Commerce, Science, and Transportation published the updated text …

2025-07-01
under deliberation

On 1 July 2025, the United States Senate voted to remove a proposed 10-year moratorium on state and…

2025-07-03
rejected

On 3 July 2025, the Budget reconciliation Bill was adopted following the House of Representatives' …