Republicans Drop Trump's Push to Block State AI Laws from Defense Bill After Party Split

Trump's Federal Preemption Effort Collapses in Defense Bill

A Donald Trump-backed attempt to block state AI laws has failed once again, as Republicans removed the controversial measure from the National Defense Authorization Act (NDAA) 1

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. House Majority Leader Steve Scalise told reporters Tuesday that the defense bill "wasn't the best place for this to fit," acknowledging that Republicans are "still looking at other places" to advance the measure 2

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. The proposal would have established a single federal standard preventing states from regulating AI for a decade, a priority Donald Trump has repeatedly emphasized on Truth Social 3

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For months, Trump has pressured the Republican-led Congress to implement federal preemption, arguing that a patchwork of regulations across 50 states threatens innovation and America's competitive position against China. "We MUST have one Federal Standard instead of a patchwork of 50 State Regulatory Regimes," Trump wrote last month, warning that "If we don't, then China will easily catch us in the AI race" 1

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. This marks the second failed attempt after a similar provision was stripped from the "Big Beautiful" budget bill earlier this year following a 99-1 Senate vote 4

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Bipartisan Opposition Derails Republican Strategy

The collapse of Donald Trump's push exposed deep divisions within the Republican party over states' rights and federalism. Notable critics included Rep. Marjorie Taylor Greene, Alabama Gov. Sarah Huckabee Sanders, and Florida Gov. Ron DeSantis, who argued against limiting state authority 1

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. Sen. Josh Hawley of Missouri, a leading Senate critic of AI's impact on American workers and teenagers, posted on X that "This is a terrible provision and should remain OUT" 5

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More than 200 state lawmakers urged Congress to reject the block on state AI laws, arguing that states are better positioned to act quickly on emerging technology issues. "A blanket prohibition on state and local AI and automated decision-system regulation would abruptly cut off active democratic debate in statehouses and impose a sweeping pause on policymaking at the very moment when communities are seeking responsive solutions," they wrote 3

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. Senate Majority Leader John Thune called the measure "controversial," noting that "both sides are kind of dug in" 5

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$150 Million Lobbying War Shapes AI Regulation Debate

Behind the legislative battle lies a $150 million lobbying war between competing visions for AI regulation 1

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. Americans for Responsible Innovation (ARI), backed by safety-focused and effective altruism-aligned donor networks, leads efforts supporting state AI laws that can be passed faster than federal regulations. The group celebrated the removal from the NDAA, noting the measure "had faced backlash from a nationwide, bipartisan coalition of state lawmakers, parents, faith leaders, unions, whistleblowers, and other public advocates" 1

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On the opposing side, Leading the Future (LTF), backed by Silicon Valley's largest investors, advocates for preventing states from regulating AI and prefers a federal framework. Silicon Valley has consistently argued that state regulations create an unworkable patchwork of rules that could stymie innovation 2

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. Critics counter that most state AI legislation focuses on safety, transparency, and consumer protection, and that blocking states from regulating would effectively hand control to Big Tech oversight with no safeguards 2

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Executive Order Looms as Legislative Path Narrows

If Congress fails to find another legislative vehicle, Trump will likely release an executive order to enforce the policy 1

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. A leaked draft executive order signals Trump is considering unilateral action, though those efforts have reportedly paused while Republicans search for alternative paths 2

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. The draft order would penalize states imposing restrictive AI rules with limited broadband funding 3

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The White House remains committed to promoting AI development and could revisit the state moratorium in 2026, given the intense interest from Trump and AI companies like OpenAI 4

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. Meanwhile, state-level action continues: New York's RAISE Act awaits Governor Kathy Hochul's signature, which would require companies like Google and OpenAI to submit risk disclosures and safety assessments or face fines 1

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. LTF has targeted the act's author, Alex Bores, planning to invest millions in ads to block his 2026 Congressional bid, underscoring how the battle over AI regulation extends beyond immediate legislative fights into future electoral contests .