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Bipartisan House Lawmakers Unveil Draft Bill to Limit State Regulation of AI Model Development

By  |  June 7, 2026
AI, SaaS, B2B

A bipartisan pair of U.S. House lawmakers on Thursday released draft legislation that would prevent states from enacting laws aimed specifically at regulating the development of artificial intelligence models, while preserving state authority over how AI technologies are used, according to Reuters.

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    The proposal was introduced by Representative Lori Trahan, a Democrat from Massachusetts, and Representative Jay Obernolte, a Republican from California. According to Reuters, the draft would prohibit states from passing laws “targeting artificial intelligence model development,” but would not prevent them from regulating applications of AI technology.

    The legislation represents the latest effort in an ongoing debate over whether AI should be governed primarily through a national framework or through a patchwork of state-level rules. Technology companies and some federal policymakers have argued that differing state regulations could create compliance burdens and slow innovation, while critics contend that states have stepped in because Congress has yet to establish comprehensive AI safeguards. According to Reuters, previous attempts to broadly restrict state AI regulation have faced significant bipartisan resistance from state officials and lawmakers.

    The release comes amid growing federal interest in establishing uniform AI standards. Earlier this year, the White House outlined a national AI policy framework that emphasized the importance of consistent nationwide rules and warned that a fragmented regulatory landscape could hinder U.S. competitiveness in the global AI race. Per Reuters and other policy analyses, federal policymakers have increasingly examined ways to limit overlapping state regulations while maintaining protections against harms such as fraud, deepfakes and consumer abuses.

    Read more: Following EU, Canada Unveils AI Sovereignty Plan

    According to Reuters, the lawmakers are seeking public input before formally introducing the measure in Congress. “We are releasing this draft to hear from stakeholders, experts, and the public so we can strengthen the legislation before it is formally introduced,” Obernolte said in a statement.

    The draft bill arrives as states across the country continue to advance AI-related legislation. More than a dozen states have enacted laws addressing various aspects of artificial intelligence, ranging from algorithmic discrimination and transparency requirements to protections against AI-generated deception, according to legislative tracking organizations and policy researchers.

    While the proposal would shield AI model developers from state-specific regulations, according to Reuters, it would leave intact the ability of states to regulate the deployment and use of AI systems in areas such as consumer protection and public safety. The measure is expected to draw close scrutiny from both the technology industry and state officials as Congress continues to weigh the balance between innovation and oversight in the rapidly evolving AI sector.

    Source: Reuters.