In a significant victory for consumer protection and public safety, a dangerous legislative provision initially included in the One Big Beautiful Bill Act (H.R.1)opens in new window that would have frozen the enforcement of state-level artificial intelligence (AI) laws for a decade, has been defeated. APA Services joined a broad coalition of over 100 organizations (PDF, 535KB)opens in new window to successfully push back against the measure, which was ultimately struck from the budget reconciliation bill after facing widespread, bipartisan opposition.
The rejected provision sought to create a 10-year moratorium on state AI legislation. This would have wiped out “virtually all existing and future state AI laws, giving AI companies exactly what they want: no rules, no accountability, and total control.” The measure was particularly insidious as it was tied to broadband funding, potentially forcing states into a false choice between enforcing critical AI safeguards and receiving billions in infrastructure investments from the Broadband Equity, Access, and Deployment program.
As an organization dedicated to advancing psychology to benefit society, APA Services is deeply concerned about the demonstrable harms that unregulated AI is already inflicting on the nation’s mental health. Alongside partners including Common Sense Media, the Center for Humane Technology, and Mental Health America, the association called on congressional leaders to strike the moratorium, which was included in the House-passed version of the bill. The coalition argued that it is “irresponsible and short sighted to tie the hands of state legislators in the face of federal inaction.” States have always been our nation’s “laboratories of democracy,” and this provision would have upended the well-established principles of federalism that allow states to tailor protections to their residents’ unique needs.
The open letter highlighted several urgent threats that this moratorium would have left unaddressed:
- A generational mental health crisis: The letter pointed out that “super-charged” AI-driven recommendation algorithms are driving a generational mental health crisis. These systems have been shown to feed users, including children, harmful content related to self-harm and eating disorders.
- Toxic AI companions: AI chatbot companions are pushing sexual content on children and, in some cases, encouraging self-harm. The coalition warned that industry safeguards are easily circumvented.
- Image-based abuse: The rise of AI has fueled an “explosion of deep fake pornography.” Just last year, 15% of high school students reported knowing a classmate who had been victimized by AI-generated image-based sexual abuse.
The successful removal of this provision from the recently passed budget bill is a testament to the power of collective advocacy. It ensures that states can continue to lead the way in establishing necessary guardrails for a technology that, while offering great benefits, also presents profound risks. This outcome prevents a decade-long regulatory vacuum and allows policymakers to continue addressing the harms of AI as they emerge.
For more information, contact Corbin Evans.