Federal Initiative Aims to Streamline AI Governance with Decade-Long State Moratorium
Washington, D.C. – May 19, 2025 — As national conversations around AI governance gain momentum, RegulatingAI, a leading voice in ethical AI policy, welcomes the growing focus on a federal framework while emphasizing the importance of collaborative, multi-level regulation. In response to a draft bill from the U.S. House Energy and Commerce Committee proposing a 10-year pause on state-level AI enforcement, RegulatingAI encourages a forward-thinking approach that preserves both national consistency and local innovation.
While RegulatingAI supports coordinated federal action on artificial intelligence, the proposed moratorium could undermine state innovation and public protection in the face of rapidly evolving AI technologies.
“Preempting state authority for a decade would freeze local governments’ ability to address urgent risks in real time,” said Upasana Singh, Director of Policy at RegulatingAI. “We recognize the value of a unified national framework, but it must be adaptable and include meaningful roles for states, which have historically been first responders in tech accountability.”
The legislative draft, introduced by House committee leaders including Reps. Cathy McMorris Rodgers, R-Wash., and Frank Pallone, D-N.J., suggests giving sole enforcement authority over certain AI rules to the Federal Trade Commission and newly created federal offices. Under this proposal, states would be limited in their ability to pursue AI-related consumer protection and civil rights claims.
RegulatingAI urges Congress to reconsider provisions that would limit state-level participation in AI governance. Effective oversight requires a multi-layered approach that includes federal leadership, strong local protections, and collaboration across sectors.
“This is a once-in-a-generation moment to get AI governance right,” said Singh. “We cannot afford to sideline the states when AI impacts everything from hiring practices to healthcare access.”
About RegulatingAI
RegulatingAI, an initiative of Knowledge Networks, is a non-profit organization focused on promoting ethical AI governance. We empower regulators, industry leaders, and advocacy groups with the knowledge and tools necessary to shape the future of AI technologies, ensuring they are developed with trust and transparency.
For media inquiries and further information, please contact:
📧 upasana@regulatingai.org | upasana@knowledgenetworks.org
