The US Home of Representatives just narrowly passed a budget bill, which has been referred to by President Trump and others as “one huge, stunning invoice.” Hidden amongst the cuts to well being care, debt add-ons and tax breaks for the wealthy is a ten-year ban of state AI laws. You learn that proper. States can be banned by the federal authorities from implementing legal guidelines that regulate AI for the subsequent decade.
The vote fell largely along party lines, with almost each Republican member of the Home approving the invoice. This marks one of the crucial important federal actions on expertise coverage in a long time and it was buried in a finances invoice that has nothing to do with AI.
This is not regulation simply but. The finances invoice has to move by means of the Senate and it might have a tough highway. It is anticipated that Democratic lawmakers will challenge the AI regulation ban below what’s known as the Byrd Rule, which prohibits “extraneous” provisions to the federal finances throughout the reconciliation course of.
Even some Senate Republicans appear cautious of the ban. Sen. Marsha Blackburn of Tennessee expressed concern that it could override state laws that protects artists from deepfakes in her state. Sen. Josh Hawley of Missouri has additionally pushed back on the idea on the grounds that it could “tamp down on folks’s efforts to deal with” points posed by AI.
Supporters of the ban argue that it could cease a doubtlessly complicated patchwork of differing state AI legal guidelines till Congress can craft its personal federal laws. That is fairly odd coming from the “states’ rights” crowd, however no matter.
Opponents, like many Democratic lawmakers and advocacy organizations just like the Electronic Frontier Foundation, name it a dangerous giveaway to big tech firms, as these firms stand to learn probably the most from a totally unregulated market. Additionally they say it poses a serious danger to Americans, as it could go away the citizenry unprotected from any associated risk. Present state legal guidelines handle points together with deepfakes and discrimination in automated hiring.
“Make no mistake, the households who’ve come to this committee and begged for us to behave will not profit from this proposal,” mentioned Democratic Rep. Lori Trahan during a subcommittee hearing on the matter. “However you recognize who will? The massive tech CEOs who’re sitting behind Donald Trump at his inauguration.”
Rightfully, the cuts to Medicaid (over 10M folks will lose their well being care) and the tax cuts for the wealthy have been the story of the disastrous Republican finances invoice.
However I learn the entire thing. And there are some hidden rats in there you’ll want to find out about.
1/ A fast🧵
— Chris Murphy 🟧 (@ChrisMurphyCT) May 20, 2025
The finances invoice, as handed by the Home, additionally consists of cuts to Medicaid totaling an estimated $625 billion and cuts to SNAP, in any other case known as meals stamps, totaling $300 billion. It might additionally force $500 billion in cuts to Medicare, which serves senior residents, as a byproduct of adding nearly $4 trillion to the nationwide deficit. It additionally ends the EV tax credit. All of this pays for an extension and growth of earlier tax cuts that disproportionately favor high-income earners.
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