Transparency Coalition statement: America deserves a full and free discussion of AI, not a 10-year gag order
A clause in the budget bill would deny all 50 states the ability to enforce any laws around artificial intelligence for a period of ten years. The proposal would have catastrophic consequences for innovation, consumer safety, and American security. (Photo: Getty Images for Unsplash+)
Editor’s note: As Congress considers the ‘One Big Beautiful Bill’ on Capitol Hill, the omnibus budget package contains a little-known provision that would suspend the enforcement of all state laws dealing with artificial intelligence for a period of ten years. The Transparency Coalition has issued this position statement on the proposal.
June 26, 2025 — At the Transparency Coalition, we are alarmed at the proposed 10-year moratorium on enforcing state AI legislation contained in the budget bill currently under consideration by Congress.
Passage of this clause would have catastrophic consequences for consumer safety and security. In fact, given its broad wording, it seeks to curtail any legislation that puts guardrails around platforms that make automated decisions, and not just AI. It would harm, not help, American innovation by undermining the fragile trust consumers have in this powerful emerging technology.
what we need: robust discussion, sensible legislation
Americans in both parties and in all 50 states desire robust discussion and sensible legislation around technology. As a nation built on freedom and innovation, we have learned over 250 years that appropriate governance can encourage both businesses and consumers to thrive.
States like Texas, Tennessee, Michigan, Georgia, Louisiana, California, Utah, Colorado, and Mississippi have taken the lead in establishing sensible laws around artificial intelligence. Those laws protect children and teens from AI-generated deepfakes and CSAM (child sexual abuse material). They keep false AI-generated material out of our elections. They protect Nashville songwriters and Hollywood actors from the AI-enabled theft of their own music, voices, and even the abuse of their own likeness. They protect seniors from fraudsters using fake AI-generated voices to steal from our elders.
states are listening and leading
States are the laboratories of democracy. State legislators are testing new ideas and installing critically needed safeguards to protect their constituents. In Washington, D.C., Congress has several promising ideas about AI governance circulating on Capitol Hill. When those proposals come to fruition in the form of federal legislation, the natural process of federal pre-emption will come into effect.
The 10-year moratorium proposed in the budget bill twists federal pre-emption into a tool that invites big technology companies to unleash hazardous, unchecked products with complete impunity. It is a disservice to all Americans, who deserve unfettered, robust discussion from all sides and within every democratic laboratory.
We urge members of the Senate and House to drop the 10-year moratorium. Move forward, boldly and courageously, to find the right balance between innovation, safety, and national leadership that all Americans demand.
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