A bipartisan group of US House lawmakers has released a draft bill that would bar states from regulating the development of AI models, reigniting a debate over whether the federal government or states should oversee.
The discussion draft of the Great American AI Act, unveiled by Representatives Lori Trahan and Jay Obernolte along with other lawmakers, would bar states from passing laws that directly govern AI model development, including requirements for testing models before public release. States, however, would still be able to regulate how AI systems are used.
Federal framework for AI: The proposal would create a national AI governance framework centred on a new Center for AI Standards and Innovation within the Commerce Department. The center would develop AI security standards, assess risks from advanced AI systems, coordinate with federal agencies and allies, and oversee audits of major AI developers.
New obligations for AI companies: The draft also introduces transparency requirements for large frontier AI developers. Companies would have to publish safety frameworks, conduct risk assessments for advanced models, disclose key information before deployment, report critical safety incidents, and undergo independent verification. Violations could attract civil penalties of up to $1 million per violation.
In a joint statement, the lawmakers said the bill aims to create a “national framework that protects Americans, supports innovation, and ensures the U.S. leads the world in shaping this technology.”
Pushback from consumer groups: The proposal has already drawn criticism from consumer advocacy groups like Public Citizen, which said the bill would leave “oversight largely to a federal government that has repeatedly failed to pass meaningful AI protections.” The group also argued that the draft does not address issues such as algorithmic discrimination, consumer fraud, deepfakes, youth harms, and market concentration.
The Information Technology Industry Council, which represents major technology companies, backed the effort, saying Congress should establish a national standard for AI development and deployment.
Broader political context: The draft arrives as Congress continues to struggle to pass comprehensive AI legislation. It also follows recent moves by President Donald Trump’s administration to pre-empt state AI rules. In March, the White House urged lawmakers to enact legislation overriding state AI regulations, and earlier this week Trump ordered leading AI developers to voluntarily submit their most advanced models for government cybersecurity testing before public release.
Lawmakers have released the bill as a discussion draft and are seeking feedback from industry, researchers, and the public before formally introducing the legislation.
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