States' Right to Regulate AI Act
- Sponsor
- Sen. Markey, Edward J. [D-MA]
- Committees
- Commerce, Science, and Transportation Committee (primary)
- Last action
- Dec 17, 2025
Bottom line
This bill seeks to prevent federal agencies from implementing a specific Executive Order on Artificial Intelligence, effectively asserting states' authority over AI regulation and potentially leading to a fragmented regulatory landscape.
What it actually does
This bill, titled the "States' Right to Regulate AI Act," prohibits the use of any federal funds to implement, administer, or enforce a specific Executive Order issued on December 11, 2025, which is titled "Ensuring a National Policy Framework for Artificial Intelligence." In essence, it aims to prevent the federal government from spending money to enact the policies outlined in that particular Executive Order, thereby limiting federal involvement in AI regulation.
Proponents argue
Supporters of this bill argue that it is essential for upholding the principles of federalism, allowing individual states to develop and implement AI regulations tailored to their unique needs and priorities. They contend that a top-down federal framework could stifle innovation, be unresponsive to local concerns, or represent an overreach of executive power into areas better managed at the state level, thereby protecting states' rights to govern emerging technologies.
Opponents contend
Opponents would likely argue that prohibiting federal funds for a national AI policy framework undermines the ability of the United States to establish a cohesive and unified strategy for artificial intelligence. They might contend that a national approach is crucial for addressing complex, cross-jurisdictional challenges such as AI safety, ethics, and economic competitiveness, and that a fragmented state-by-state regulatory environment could create confusion, hinder innovation, and make it difficult for businesses to comply.
The bill text is exceptionally short and clear, making it readable in a matter of seconds. A reader can easily understand its core purpose without significant effort.
Section 2
Prohibition on Federal Funds for AI Executive Order
This section explicitly forbids the use of any federal money to carry out, manage, or enforce the Executive Order titled "Ensuring a National Policy Framework for Artificial Intelligence," which was issued on December 11, 2025. This means no federal agency or program can spend funds to implement the policies or directives outlined in that specific Executive Order, effectively halting federal efforts to establish a national AI policy framework through that particular executive action.
Supporters argue
Supporters argue this provision is crucial for upholding federalism, allowing states to tailor AI regulations to their unique economic and social contexts without being constrained by a top-down federal mandate. They believe it prevents potential overreach by the executive branch into areas traditionally reserved for state governance, ensuring that AI policy is more responsive to local needs and democratic processes.
Critics contend
Opponents would contend that this prohibition undermines the federal government's ability to establish a coherent and unified national strategy for artificial intelligence, which they argue is essential for addressing complex, cross-jurisdictional issues like AI safety, ethics, and economic impact. They might also argue it could lead to a fragmented regulatory environment that stifles innovation and makes compliance more difficult for businesses operating across state lines, potentially hindering U.S. competitiveness in AI.
Tradeoffs
This provision navigates the fundamental tension between federal authority to set national policy, particularly in rapidly emerging technology sectors, and the principle of states' rights to regulate within their borders. It trades the potential benefits of a unified national approach for decentralized, potentially more responsive, state-level control, raising questions about consistency, efficiency, and overall effectiveness of AI governance.