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(AI Moratorium) Artificial Intelligence and Information Technology Modernization Initiative - H.R. 1

Name
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Government
Date Initiated
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Last Updated

Summary

The House Energy and Commerce Committee released budget reconciliation text containing a 10-year moratorium on state AI policy.

Under “Section 43201: Artificial intelligence and information technology modernization initiative,” the text includes provisions to modernize federal IT systems with commercial AI technologies and mandate their adoption to “increase operational efficiency and service delivery,” automation, and cybersecurity. The moratorium in Subsection (c) states:

"…that no state or political subdivision may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10-year period beginning on the date of the enactment of this Act."

Updates

May 13, 2025. At a markup hearing to consider legislative recommendations for budget reconciliation, the House Energy & Commerce Committee advanced the measure as part of a larger continuing resolution.

May 22, 2025. The measures passed the House of Representatives as part H.R. 1 - One Big Beautiful Bill Act. The final language in the measure was amended to apply to AI systems or automated decision-making "entered into interstate or commerce" and would not apply to the enforcement of any law that “carries a criminal penalty.”

June 5, 2025. The Senate Commerce Committee released a revised version of the moratorium that would require states to abide by the 10-year prohibition on AI regulation if they receive funding from the Broadband Equity Access and Deployment Program (BEAD).

June 21, 2025. The Senate Parliamentarian determined that the proposed moratorium survived procedural scrutiny under the Byrd Rule and can remain in the budget bill.

Further reading