Trump's "Big Beautiful Bill" bans all 50 states from regulating AI for 10 years, centralizes control at the federal level, and integrates AI systems into key federal agencies

This summer, the U.S. Senate will deliberate and vote on a sweeping tax and spending proposal that the Trump administration has dubbed One Big Beautiful Bill. A key provision in the legislation is a 10-year moratorium on state or local AI laws.

If enacted, the measure could upend efforts in more than 45 states that introduced AI-related bills last legislative session, as well as the 31 states that passed resolutions or enacted laws. However, the proposed ban does allow exceptions for state laws that support the development and deployment of AI technologies. The bill also has implications for enterprises and CIOs that have already invested in compliance—by adjusting internal practices, hiring external consultants, or engaging specialized legal counsel.