• Rep. Marjorie Taylor Greene opposes a 10-year ban on state AI regulation in the OBBB, citing risks to states’ rights and accountability.
• Proponents argue a federal framework prevents patchwork state laws, while critics warn it undermines states’ ability to address AI-related risks.
• The Senate will deliberate on the bill, with potential revisions to the AI provision expected to be a key focus.

Rep. Marjorie Taylor Greene (R., Ga.) has urged Senate Republicans to remove a provision in President Donald Trump’s sweeping tax and spending bill that would impose a 10-year ban on state-level regulation of artificial intelligence (AI). Greene contends the measure infringes on states’ rights and poses risks as the technology evolves rapidly.

Greene, in a post on the social platform X, criticized the provision, located on pages 278-279 of the “One Big Beautiful Bill” (OBBB). “I am adamantly opposed to this,” Greene wrote. “We have no idea what AI will be capable of in the next ten years, and tying states’ hands is potentially dangerous.”

The provision has drawn sharp debate, underscoring the complexities of regulating AI in a fragmented legal environment. While proponents argue the moratorium prevents a patchwork of conflicting state laws that could stifle innovation, critics believe it undermines states’ ability to address potential AI risks, including consumer safety and data privacy concerns.

Federal Framework Versus State Authority

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The OBBB calls for a federal framework to govern AI models and systems, preempting state laws to streamline compliance for businesses. Supporters, including some House Republicans, see this as a way to accelerate AI development without the burden of navigating varying state regulations. “A unified approach benefits innovation and ensures consistency,” said a senior executive at a major AI firm who asked not to be named.

Yet, Greene and others believe the moratorium sacrifices accountability in favor of corporate convenience. “We should be reducing federal power and preserving state power,” Greene said. “Not the other way around.”

State lawmakers have also voiced opposition. On Tuesday, a coalition of 260 legislators from 49 states submitted a letter to Congress warning that the moratorium could disrupt ongoing state efforts to address AI-related issues. They stated, “This provision undermines states’ ability to protect their residents from emerging risks posed by AI.”

Senate Faces Procedural Hurdles

The Senate’s version of the OBBB, which passed the House in May with narrow GOP support, may face additional challenges under the Byrd Rule. This procedural guideline prohibits provisions that do not directly alter federal revenues or spending from being included in reconciliation bills. The Senate parliamentarian will determine if the AI moratorium meets these criteria.

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The Commerce Department, under the bill’s current language, would allocate funding to modernize federal IT systems using commercial AI technologies. Critics argue this funding does not justify overriding states’ regulatory authority.

Broader Implications for AI and Industry

The battle over AI regulation reflects broader tensions between innovation and oversight as the technology transforms industries from finance to manufacturing. Analysts caution that delaying state and federal AI safeguards could expose businesses to greater liability risks over time.

However, tech executives warn that fragmented rules could stymie progress. “AI companies seeking to deploy systems nationally are wary of navigating divergent state-by-state regulations, which is why we support a federal approach,” said a policy advisor for a Silicon Valley-based AI startup.

For House GOP leaders, Greene’s opposition complicates the already narrow margin for passing the bill. The GOP can only afford to lose three votes on any party-line measure. Two Republicans, Reps. Thomas Massie (Ky.) and Warren Davidson (Ohio), voted against the bill initially, citing concerns over its broader provisions.

What’s Next?

The Senate is expected to deliberate on the OBBB in the coming weeks, with potential revisions to the AI measure likely to emerge as a pivotal issue. Should the Senate amend the bill, its final approval in the House will depend on resolving disagreements over state regulation and federal authority.

As the debate unfolds, businesses and policymakers alike will monitor the outcome closely, given the implications for AI development, data governance, and federal-state relations.

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