US legislators insert language into the Budget Reconciliation bill prohibiting state or local AI regulations for ten years, carving out limited exceptions to streamline AI deployment and maintain uniform federal oversight.

Key points

• Congress adds ten-year ban on state enforcement of AI regulations via Budget Reconciliation bill amendment.
• Clause includes carve-outs for laws that facilitate AI deployment, streamline procedures, or impose only reasonable fees.
• State mandates like California’s healthcare AI disclosure rules are preempted unless adopted federally or applied universally.

Why it matters: Centralizing AI oversight limits diverse state protections and shapes a uniform national regulatory framework.