Louisiana AI Bills Halted After Trump White House Threatens BEAD Funding
The administration’s actions have now halted regulation in at least two states.
WASHINGTON, April 1, 2026 – With the Broadband Equity Access and Deployment Program (BEAD) on the cusp of finally getting off the ground, states' attempts at AI regulation may be yet another barrier to implementation.
Members of Louisiana state legislature withdrew their bipartisan AI regulatory bills after several legislators heard that administration officials opposed them and threatened to withhold BEAD funding, according to several legislators and reporting by NOLA.
“We stand to lose a lot of money in the state of Louisiana that would help a lot of people if we go forward with this bill,” said Democratic State Sen. Jay Luneau.
Leneau told NOLA.com that he decided to not move forward with Senate Bill 246, which would have regulated how insurance companies could use AI after he learned it put the BEAD funds at risk.
After hearing from Lousania’s Governor Jeff Landry, R, that administration officials opposed his bills, Rep. Vincent Cox, R, decided to withdraw both, one that would have protected musicians by restricting AI generated content of a person’s likeness or voice for commercial purposes and another requiring employers to disclose when they use AI automation.
“As much as I like my bills, our rural parishes need broadband, and I’m not going to do anything to hurt that,” Cox said.
This is not the first time BEAD funds have been threatened due to state legislation the administration has disagreed with.
Last June, a California bill that mandated internet service providers to offer $15 broadband access plans was abruptly pulled after the bill’s author Assemblywoman Tasha Boerner, D, learned that the law was potentially putting the state’s BEAD funds at risk.
“The new BEAD program regulations implemented by the Trump loyalists at the NTIA push the bounds of jurisdiction of states rights…the change has introduced too much legal uncertainty and put at risk $1.86 billion in broadband infrastructure funding,” Boerner said.
In December, President Trump signed the "Ensuring a National Policy Framework For Artificial Intelligence," executive order which required the U.S. Commerce department to restrict states from receiving BEAD funding if it deemed the state’s laws on AI were too “onerous”
At her appearance at the INCOMPAS Summit in February, NTIA’s Chief of Staff Brooke Donilon noted they have been trying to narrow the definition of what constitutes an “onerous” AI law and would release clarifying guidance.
That Guidance, which was initially expected on March 11 for what NTIA considers an "onerous AI law” is still pending.
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