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State AI Laws Face Federal Challenge as Moratorium Debate Intensifies

WASHINGTON D.C. – A contentious proposal in Congress to temporarily halt state-level regulation of artificial intelligence is drawing sharp criticism from state attorneys general and advocacy groups, who argue it would undermine crucial safeguards for citizens. The debate centers on a clause inserted into a broader bill concerning broadband access, potentially precluding states from receiving federal funding if they don’t agree to pause AI lawmaking. This advancement comes as states increasingly take the lead in addressing the rapidly evolving challenges posed by AI technologies. [[1]]

Growing State Activity in AI Governance

Over the past year, numerous states have begun enacting legislation to address concerns surrounding algorithmic bias, data privacy, and the responsible use of AI, notably in areas like employment and consumer protection. This surge in state-level activity reflects a growing recognition that AI is no longer a futuristic concept but an integral part of daily life. [[2]] According to the National Conference of State Legislatures, over 300 bills related to AI were introduced across state legislatures in 2024 alone.

Brad Carson,president of the American Alliance for Innovation (ARI),voiced strong opposition to the proposed moratorium,stating that it would “freeze a whole range of common-sense laws that voters depend on.” He further argued that while a targeted