AIWorldNewz.com

Congress Prepares for Major Year-End Battle Over AI Moratorium in Defense Bill

Source: It’s Back. Congress Gears Up for Year-End Fight Over Moratorium on AI Laws. (2025-11-19)

In a pivotal move, U.S. Congress is gearing up for a high-stakes showdown over a proposed five-year moratorium on state-level AI regulations, potentially embedded within the annual National Defense Authorization Act (NDAA). This effort marks a significant escalation in the ongoing debate over AI governance, with implications for innovation, state sovereignty, and national security. The push, led by House Majority Leader Steve Scalise, aims to prevent states from enacting AI laws that could impact federal defense and broadband initiatives. While the original proposal sought a decade-long ban, recent revisions narrow its scope, focusing on federal broadband grants. Despite bipartisan opposition—highlighted by a 99-1 Senate rejection—supporters argue the moratorium is essential to prevent inconsistent regulations that could hinder technological progress and national security. As lawmakers race to finalize the defense bill before Thanksgiving, the AI moratorium's fate remains uncertain, but its potential passage could reshape the landscape of AI regulation in the United States for years to come. Recent developments include the increasing influence of AI on critical sectors such as healthcare, finance, and national security, with the global AI market projected to reach over $500 billion by 2026. The U.S. government has also announced new initiatives to bolster AI research and development, including a $2 billion federal investment in AI innovation hubs and increased funding for AI safety and ethics research. Meanwhile, several states, including California and New York, have enacted or proposed their own AI laws focusing on transparency, bias mitigation, and consumer protection, which opponents of the moratorium argue could stifle innovation and create regulatory fragmentation. The debate over AI regulation is further complicated by international developments, with the European Union advancing its AI Act to establish comprehensive rules, and China accelerating its AI capabilities through substantial government investments. Experts warn that a federal moratorium could delay the development of critical AI safety standards and hinder the U.S.'s competitive edge in global AI leadership. As the legislative calendar tightens, stakeholders from tech giants to consumer advocates are mobilizing to influence the outcome, emphasizing the importance of balanced regulation that fosters innovation while safeguarding public interests. The upcoming vote on the defense bill could be a decisive moment in shaping the future of AI policy in America, with lasting impacts on technology, security, and economic growth.

More recent coverage