Coalition of 140 Groups Challenges GOP Bid to Block State AI Oversight

The controversial language, designated as Section 43201(c), was inserted by Rep. Brett Guthrie into a House Budget Committee megabill. If enacted, it would bar state and local governments from enforcing any laws governing AI models or automated decision systems for ten years. Critics contend this would leave citizens defenseless against algorithmic discrimination, predatory chatbots, and the proliferation of nonconsensual deepfakes.

Emily Peterson-Cassin, corporate power director at Demand Progress, described the provision as a dangerous gift to industry executives. The coalition—which includes the American Federation of Teachers, Greenpeace USA, and Public Citizen—emphasizes that while they often disagree on policy, they are united in the belief that states must remain free to protect residents where federal oversight remains absent. They warn that without local accountability, the technology will be forced into healthcare, housing, and financial services without necessary safeguards.