House Majority Leader Steve Scalise said Republican leaders are searching for “other places” to advance a federal measure that would block state-level artificial intelligence (AI) regulations, after efforts to attach the provision to the annual National Defense Authorization Act (NDAA) stalled amid intraparty disagreements, The Hill reported.

The push—strongly backed by President Trump—has exposed deep divisions within the GOP as lawmakers negotiate the final text of the must-pass defense bill. Scalise told reporters the NDAA was “not the best place for this to fit,” but emphasized that the party is not abandoning the effort. “We need to find a place to do it,” he said, adding that leaders are still exploring legislative options because “there’s still an interest.”

Republicans initially attempted to secure a 10-year moratorium on state AI laws earlier this year through Trump’s tax and spending bill. That effort collapsed under resistance from within the party, and a renewed NDAA push last month met similar setbacks. Opponents included Rep. Marjorie Taylor Greene, Arkansas Gov. Sarah Huckabee Sanders and Florida Gov. Ron DeSantis, according to The Hill.

Trump publicly urged Congress to pass the moratorium as part of the NDAA or as standalone legislation, and even considered issuing an executive order. But lawmakers reportedly encouraged the president to hold off as negotiations continued.

Supporters of federal preemption—including the White House and GOP leadership—argue that a uniform national approach is needed to prevent a patchwork of state rules that could hinder innovation and weaken the United States in its competition with China. Scalise warned that “states like California” could “wreck the ability to innovate in artificial intelligence,” drawing parallels to what he described as Europe’s regulatory overreach.

But Senate Minority Leader John Thune signaled the provision faces an uphill battle, calling it “controversial” and noting that both sides remain “dug in.”

With the NDAA window narrowing, Republican leaders now face the challenge of finding a viable legislative vehicle to revive the stalled AI preemption effort.

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