In a razor-thin 215–214 vote this week, the U.S. House of Representatives passed a sweeping budget bill that includes a controversial tech provision: a 10-year ban on state-level enforcement of artificial intelligence (AI) regulations.

The legislation, dubbed the “One Big, Beautiful” bill (H.R. 1), is packed with Republican priorities on taxes, immigration, and technology—and is seen as a cornerstone of President Donald Trump’s domestic policy agenda. If enacted through budget reconciliation, the AI moratorium would mark one of the most significant federal moves on tech regulation in decades.

Supporters argue the measure would prevent a fragmented patchwork of AI laws and give Congress time to pass national standards. Critics warn it would strip protections from vulnerable groups, override dozens of existing state laws on deepfakes and algorithmic bias, and hand Big Tech unchecked power.

Some lawmakers defended the proposal by saying that a patchwork of various state laws is not good for innovation, for business or consumers. However, other lawmakers stated that this proposal was appeasing “Big Tech.”

The bill now heads to the Senate, where it faces procedural hurdles and could potentially be removed altogether. Democrats are expected to challenge the AI provision under the Byrd Rule, which bars non-budgetary items from reconciliation packages. Some Senate Republicans, including Sens. Marsha Blackburn of Tennessee and Josh Hawley of Missouri, have also voiced opposition.

Civil society groups, dozens of state attorneys general, and both Democratic and Republican lawmakers at the state level have condemned the AI moratorium. Meanwhile, industry advocates say it will promote innovation and avoid costly regulatory confusion.

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