Colorado AI Law in the Spotlight As Battle Over Regs Between States and Congress Flares Anew

The Colorado legislature passed the Colorado Artificial Intelligence Act in May 2024 that aimed to put guardrails around “high-risk” AI systems, which quickly became a model of other states looking to fill the void left by the lack of a comprehensive federal regulatory framework. Gov. Jared Polis signed the law that same month, but soon after called a special session of the legislature to consider changes to the law ahead of its original start date of February 2026. None of the proposed changes were adopted however, but lawmakers agreed to push back implementation until June.

Since then, per Bloomberg, Polis has come out in favor of a proposal by Republicans in the U.S. House to impose a 10-year federal ban on enforcement of state-enacted AI regulations, including the Colorado law. That proposal was originally included in President Trump’s Big Beautiful Bill but was dropped ahead of final passage of law in the face of opposition, including from some Republicans on Capitol Hill. Colorado lawmakers have also come under intense pressure from tech industry lobbyists to make changes to the law ahead of the new start date in June, Tech Policy Press reported in August.

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Last week,  Punchbowl News and other outlets reported that House Republicans are considering a plan to revive the state-law moratorium by inserting it into the must-pass National Defense Authorization Act. CNBC and other outlets also reported last week that the White House had drafted a proposed executive order directing the Justice Department to challenge state AI laws as unconstitutional intrusions on federal authority.

Read more: US Commerce Secretary Urges EU to Dial Back Digital Rules Targeting American Tech

That executive order has now been put on hold, according to Reuters, but not before the renewed push for the moratorium reignited the controversy.

On Monday, a group of over 200 state lawmakers, including nearly two dozen from Colorado, sent a letter to members of the U.S. House and Senate urging Congress to reject including the AI-law moratorium in the defense bill.

“We write to convey our strong opposition to the inclusion of any preemption language in the National Defense Authorization Act (NDAA) that would curtail ongoing state efforts to address the impacts of artificial intelligence (AI),” the letter said. “A blanket prohibition on state and local AI and automated decision-system regulation would abruptly cut off active democratic debate in statehouses and impose a sweeping pause on policymaking at the very moment when communities are seeking responsive solutions.”

Also on Monday, a super PAC backed by Andreesen Horowitz and other leading AI proponents, announced a $10 million advertising campaign to push Congress to adopt a federal AI framework that would preempt state laws. The campaign’s first target, per CNBC, is New York State Assemblymember Alex Bores, who is running in the crowded Democratic primary for the Manhattan Congressional seat held by retiring Rep. Jerry Nadler.

Bores co-sponsored the RAISE Act, which establishes safety protocols for the largest AI companies. The bill passed the legislature but has not yet been signed by Gov. Kathy Hochul.