Congressional Republicans impose 10 year ban on state AI consumer protection laws

The U.S. House Committee on Energy and Commerce convened on May 21, 2025, to discuss critical issues surrounding artificial intelligence (AI) regulation and the future of U.S. leadership in this rapidly evolving field. The meeting highlighted significant concerns regarding recent legislative actions that could impact consumer protections related to AI technologies.

The session began with a strong critique from committee members regarding a provision in a recent tax bill supported by Republican members. This provision imposes a ten-year ban on states' abilities to enforce their own consumer protection laws against AI-related harms. Lawmakers expressed alarm that this move effectively gifts significant advantages to large tech companies while undermining state-level regulations designed to protect consumers.

Members emphasized the urgent need for comprehensive federal legislation to govern AI development. They called for a recommitment to bipartisan efforts aimed at establishing robust data privacy laws that would include measures for data minimization, thereby safeguarding personal and sensitive information from misuse. The committee noted that previous bipartisan efforts to create a federal privacy bill had been stymied by political pressures from the tech industry.

Concerns were raised about the implications of the Republican-led initiative to suspend enforcement of existing state laws that require transparency in AI usage, particularly in critical areas such as healthcare, education, and employment. These state laws are seen as essential safeguards against potential abuses of AI technologies, including the use of deep fakes in elections and discriminatory practices in automated decision-making.

The discussion also referenced a bipartisan AI Task Force report, which acknowledged the complexities of federal preemption over state laws. However, committee members criticized the current legislative approach for lacking specificity and failing to address the real-world harms posed by AI technologies. They argued that the proposed enforcement ban does not reflect the nuanced recommendations of the task force, which suggested careful consideration of state responsibilities in AI regulation.

As the meeting progressed, witnesses from various organizations provided insights into the international regulatory landscape for AI. The committee welcomed testimony from experts, including Sean Heather from the U.S. Chamber of Commerce and representatives from the AI Now Institute and R Street Institute, who shared their perspectives on the need for a balanced regulatory framework that fosters innovation while protecting consumers.

In conclusion, the committee's discussions underscored a growing consensus on the necessity for strong, bipartisan federal legislation to address the challenges posed by AI technologies. Lawmakers expressed a commitment to revisiting previous legislative efforts and ensuring that consumer protections remain a priority as the U.S. navigates its leadership role in the global AI landscape. The meeting concluded with a call for continued dialogue and collaboration among stakeholders to develop effective regulatory solutions.