In Washington, the Center for Data Innovation has issued a statement regarding the House Energy and Commerce Committee's recent budget reconciliation text markup. The House GOP has proposed a 10-year block on state AI regulations. Hodan Omaar, Senior Policy Manager at the Center for Data Innovation, commented on this proposal.
"The most powerful AI policy Congress could enact right now is restraint: A moratorium on state-level AI laws would prevent regulatory fragmentation and create a clear runway for American innovation to take flight," stated Omaar.
Omaar highlighted that over a thousand AI-related bills have been introduced across various states this year. This situation is leading to a fragmented network of conflicting rules that may create uncertainty, increase costs, and hinder innovation. "Fifty states improvising their own AI regimes is not federalism at its best; it’s fragmentation at its worst," Omaar noted. A temporary halt would provide Congress with the opportunity to set a national direction before such patchwork becomes permanent.
Furthermore, Omaar emphasized that opting for this path should not be seen as an abdication of U.S. leadership in AI governance but rather as a strategic choice. The aim is to rely on existing laws and regulations flexible enough to govern AI effectively without rushing into unnecessary new rules for technology still in its early stages.
Omaar also mentioned that the United States must succeed in halting EU-style regulation domestically while presenting a credible alternative to the EU's framework globally. This strategy is intended to prevent other countries from adopting rules that might disadvantage U.S. AI innovators. According to Omaar, "A pause should therefore be understood—and communicated—not as part of U.S. efforts to govern AI with light-touch regulation that supports innovation at home and American leadership abroad."
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