Republicans Push Back on ‘Big, Beautiful Bill’ AI Provision That Blocks State Oversight

A provision tucked deep within the House’s sweeping “Big, Beautiful Bill”—a legislative cornerstone of President Donald J. Trump’s agenda—is drawing fire from some Republicans over a clause that would ban states from regulating artificial intelligence for the next decade.

The provision, which allocates $500 million to the Commerce Department to modernize federal IT systems using commercial AI, also prohibits individual states from creating their own AI regulations—a move critics say undermines states' rights and hands too much control to the federal government.

According to the text, the ten-year moratorium on state-level AI laws is meant to create a consistent national framework. But that hasn’t stopped outspoken conservatives from raising red flags.

“Full transparency, I did not know about this section on pages 278–279 of the OBBB that strips states of the right to make laws or regulate AI for 10 years,”
— Rep. Marjorie Taylor Greene (R-GA), via X
“I am adamantly OPPOSED to this and it is a violation of state rights and I would have voted NO if I had known this was in there.”

“We have no idea what AI will be capable of in the next 10 years and giving it free rein and tying states’ hands is potentially dangerous,”
— Rep. Greene added

Greene’s opposition presents a growing challenge for House GOP leadership, especially as the bill heads back to the House for final approval. With only a razor-thin Republican majority, even a few defections could sink the legislation.

When the bill initially passed the House last month, Reps. Thomas Massie (KY) and Warren Davidson (OH) were the only Republicans to vote against it. Greene has now signaled that she, too, will oppose the final version unless the AI restriction is removed.

“We should be reducing federal power and preserving state power,”
— Greene continued
“Not the other way around. Especially with rapidly developing AI that even the experts warn they have no idea what it may be capable of.”

The bill—popularly known as the “Big, Beautiful Bill”—includes signature Trump policies such as:

• Making the 2017 Trump tax cuts permanent
• Boosting border security and defense funding
• Slashing wasteful spending in programs like Medicaid and SNAP

Supporters of the AI measure argue that a fragmented state-by-state system of regulation would hinder innovation, burden businesses, and disrupt the national rollout of AI-powered tools meant to enhance government efficiency.

Still, opposition is coming from both sides of the aisle.

According to The Hill, 260 state lawmakers sent a joint letter to Congress warning that the bill “undermines ongoing work in the states” aimed at safeguarding communities from the unchecked rise of artificial intelligence.

Meanwhile, some Senate Republicans are also wary of the provision’s procedural legality, questioning whether the AI regulation ban would violate the Byrd Rule—a Senate guideline that prohibits unrelated or “extraneous” measures in budget reconciliation bills.

If the Senate Parliamentarian rules the AI provision out of bounds, Republicans will be forced to decide whether to amend the bill or risk it collapsing under procedural challenge.

While President Trump and many House conservatives remain committed to technological innovation and modernizing government infrastructure, the growing intra-party divide over states’ rights vs. federal oversight may test party unity as the bill heads toward final passage.