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Exclusive / Fight over state-level AI rules heats up in Congress

Burgess Everett
Burgess Everett
Congressional Bureau Chief
Updated Dec 1, 2025, 5:07am EST
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Mike Johnson
Jonathan Ernst/Reuters

Washington will focus intensely this month on the Senate’s vote to extend expiring enhanced health insurance tax credits, but don’t lose sight of the must-pass defense policy bill.

That’s where the White House and its allies are pushing language to block states from establishing their own artificial intelligence regulations — a fight that played out over the Thanksgiving recess, according to a person familiar with the matter.

House GOP leaders want to add the AI moratorium to the National Defense Authorization Act at Trump’s request, but some Republicans don’t like it and most Democrats oppose it, too.

Congressional leaders won’t let the AI battle sink the defense bill, so if it is tossed, Trump may take executive action to restrict states from developing their own AI framework.

Another fight to watch: the White House’s push to put counter-drone authority in the defense measure.

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