Another bid to block state AI regulation has failed… for now

A renewed attempt to slip a ban on state-level AI regulation into the annual defence spending bill has reportedly been rejected following bipartisan resistance.

House Majority Leader Steve Scalise (R-LA) said Tuesday that GOP leaders will seek “other places” to push the measure — an effort that President Trump has backed — according to reporting from The Hill.

The proposal, which sought to prevent individual U.S. states from passing their own AI laws, resurfaced months after Republican lawmakers tried to attach a 10-year moratorium on state-level AI regulation to Trump’s earlier tax and spending package. That effort also collapsed under strong opposition from both Democrats and Republicans.

Tech companies in Silicon Valley have been vocal supporters of such preemption clauses, arguing that a patchwork of state AI rules would create compliance chaos and hinder innovation.

Opponents counter that most state AI proposals to date focus on safety, transparency, accountability, and consumer protection — and with no comprehensive federal AI legislation in place, blocking states from acting would effectively hand unchecked power to major tech firms.

Scalise reportedly admitted that the defence bill was not the appropriate vehicle for this type of provision, echoing Trump’s earlier suggestion that the ban should be introduced as a standalone bill.

Meanwhile, a leaked draft executive order indicates Trump may try to circumvent Congress and impose federal preemption through executive action, though those plans appear to be on hold for now.