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Reason
Reason
Jack Nicastro

Leaving AI Regulation to the States Could Strangle AI

Artificial intelligence is advancing rapidly in the United States, but one thing threatens the industry's growth: state regulations. In July 2025, 38 states passed about 100 AI measures, according to the National Conference of State Legislatures. To counteract this push from states, President Donald Trump is calling on Congress to implement a federal preemption of state AI regulations. However, it appears increasingly unlikely that such a law will pass.

Before Thanksgiving, Trump took to Truth Social to call for one federal standard instead of dozens of local laws to keep America ahead of China in the global AI race. To this end, the president called on congressional Republicans to work federal preemption into the National Defense Authorization Act (NDAA) or to pass a separate bill so that "nobody will ever be able to compete with America."

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