Senate Commerce Republicans have included a ten-year moratorium on state AI regulations in the latest budget package influenced by President Donald Trump’s administration. The broad provision has raised concerns among lawmakers and civil society groups that it could eliminate essential consumer protections. Supporters argue it prevents companies from facing a complex array of state rules, while critics fear it may exempt Big Tech from state legal frameworks without establishing federal standards, potentially leaving consumers and workers unprotected. Representative Ro Khanna (D-CA) warns this moratorium could block states from enacting basic AI regulations needed to safeguard consumers and prevent discrimination and other harmful practices.
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