A political flashpoint is emerging between artificial intelligence and federal power. This week, Republican lawmakers quietly added a sweeping provision to the Budget Reconciliation Bill that could prohibit AI regulation at both the state and federal levels for the next ten years. This measure would effectively lock the United States into a regulation-free AI future if passed.
Introduced by Rep. Brett Guthrie (R-KY), chair of the House Committee on Energy and Commerce, the bill’s updated language reads like a gift to Silicon Valley: “No State or political subdivision thereof may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the ten years beginning on the date of the enactment of this Act.”
This ten-year freeze would apply nationwide, neutering any attempts by states like California or New York, which have already passed limited AI safeguards, to enforce rules on algorithmic hiring tools or AI-driven decision-making.
It’s an astonishingly broad restriction, one that 404 Media characterizes as a reflection of deepening tech industry influence in Washington. This includes Donald Trump’s inner circle, which reportedly features AI heavyweights like Elon Musk, David Sacks, and Marc Andreessen—figures with both financial and ideological stakes in minimizing AI oversight.
The effects of unfettered AI deployment are already being felt, and they aren’t hypothetical. AI tools with addictive, emotionally manipulative behaviors are being marketed to teenagers. Deepfakes — especially those exploiting non-consensual images of women and girls — are spreading rapidly across social platforms. On top of that, several AI companies are failing to meet climate goals, releasing emissions into communities with little accountability.
In other words, the bill isn’t just blocking guardrails, it may be clearing the path for further harm.
Adding another layer to the controversy, the same bill seeks to allocate $500 million over ten years to embed commercial AI tools into federal government infrastructure. This funding is set aside for so-called “automation technologies” — a vague but potentially sweeping umbrella that could see unregulated systems driving critical decision-making across federal agencies.
In effect, the federal government isn’t just turning a blind eye to AI regulation. It’s actively embracing and investing in the technology without ensuring any public accountability or ethical safeguards.
The bill’s path to becoming law is far from certain. Though it includes massive funding for AI and severe cuts to public services like Medicaid and climate programs, it’s currently in legislative limbo. Democrats largely oppose the spending cuts, while Republican fiscal hawks have balked at the bill’s multi-billion-dollar commitments.
But if the AI provision stays intact, the outcome could be profound: a decade-long regulatory vacuum during a time when AI’s capabilities and risks are evolving by the month
