House Republicans want to ban state AI regulations for 10 years. California leaders are alarmed.

by Khari Johnson, Technology reporter, CalMatters.

This story was originally published by CalMatters. Sign up for their newsletters.

May 16, 2025

House Republicans moved to cut off artificial intelligence regulation by the states before it can take root, advancing legislation in Congress that, in California, would make it unlawful to enforce more than 20 laws passed by the Legislature and signed into law last year.

The moratorium, bundled in to a sweeping budget reconciliation bill this week, also threatens 30 bills the California Legislature is currently considering to regulate artificial intelligence, including one that would require reporting when an insurance company uses AI to deny health care and another that would require the makers of AI to evaluate how the tech performs before it’s used to decide on jobs, health care, or housing.

The California Privacy Protection Agency sent a letter to Congress Monday that says the moratorium “could rob millions of Americans of rights they already enjoy” and threatens critical privacy protections approved by California voters in 2020, such as the right to opt out of business use of automated decisionmaking technology and transparency about how their personal information is used.