House Members Spar Over 10-Year Moratorium on State AI Laws

WASHINGTON, May 21, 2025 – Congress is getting closer to adopting a plan that would ban states from regulating artificial intelligence for 10 years. At least one House Republican is considering a shorter ban to address concerns raised by Democrats.

The issue was debated Wednesday at a hearing held by the House Commerce, Manufacturing, and Trade Subcommittee on Capitol Hill.

Democrats argued that such a moratorium was a sop to Big Tech, and would harm consumers, a sentiment shared by witness Amba Kak, co-executive director of the AI Now Institute.

“Simply put, if this moratorium were to go through, American consumers would have even less protections than they have today against some of the worst AI abuses exploitation. We have new variants of scams, manipulative AI companions that are targeting the most vulnerable among us, not to mention our children,” she said.

Republicans argued that without the moratorium, American AI companies would be subject to a patchwork of competing state regulations that would make them less competitive. Witness Adam Thierer, Senior Fellow for R Street Institute, agreed.

“America’s AI innovators risk getting squeezed between the so-called Brussels effect, overzealous European regulation, and the so-called Sacramento effect of excessive state and local mandates. This regulatory squeeze will prevent our citizens from enjoying the fruits of the AI revolution and undercut our nation’s efforts to stay ahead of China in the global AI race,” he said.

Rep. Jay Obernolte, R-Calif, left open the possibility of Congress passing a shorter moratorium in the future.

“I know there’s been pushback about the 10 years that it’s too long, that it's draconian. No one wants this to be 10 years, right? I would love to see this be months, not years, but I think it’s important to send the message that everyone needs to be motivated to come to the table here,” he said.