House Republicans passed the “One Big Beautiful Bill Act” in a narrow vote early Thursday morning. The legislation aims to eliminate state control over artificial intelligence regulation, cut back on consumer protection and climate efforts, while also allocating funds for increased border surveillance and other measures.
Before it can be enacted, the budget reconciliation bill must also gain Senate approval, where some Republican members have expressed reservations about certain provisions. The support of former President Donald Trump for the bill could influence its progression through the legislative process.
Highlighted below are several significant technology and science-related aspects of the bill passed by the House:
Moratorium on State AI Laws
Under the proposed legislation, states would be prohibited from enforcing any laws that regulate artificial intelligence and “automated decision systems” for a period of ten years. This initiative is anticipated to halt hundreds of state-level AI bills under consideration in 2025 and could invalidate numerous existing laws, as the broad terminology surrounding “automated decisions” may complicate regulations on a variety of automated systems.
Proponents within the Republican Party argue this measure is essential for enabling American companies to innovate at a pace that keeps up with international competitors like China. Over sixty state-level initiatives related to AI have been enacted so far, according to the National Conference of State Legislatures (NCSL), and many may be affected by the proposed moratorium. These initiatives cover a range of issues, from algorithmic bias to the regulation of AI applications in government.
Opponents fear that this definition could hinder legislation regulating various automated systems that utilize machine learning technologies. Such regulations might include those championed by Republicans at the state level, focusing on social media practices.
“Until we pass something that is federally preemptive, we can’t call for a moratorium”
Some Republican senators, including Marsha Blackburn (R-TN), have voiced concerns regarding the moratorium. Blackburn, who is considering a gubernatorial run, emphasized the necessity of maintaining certain protections in her state’s existing AI legislation during a recent congressional hearing. “We certainly know that in Tennessee we need those protections,” she stated. “And until we pass something that is federally preemptive, we can’t call for a moratorium,” she added, according to coverage from The Washington Post.
Senator Josh Hawley (R-MO), who opposed Medicaid reductions in the House bill, also expressed resistance against the pause on state law. “I would think that, just as a matter of federalism, we’d want states to be able to try out different regimes that they think will work for their state,” Hawley remarked in a recent interview. “And I think in general, on AI, we do need some sensible oversight that protects people’s liberties.”
The provision may also face obstacles due to the “Byrd rule,” which prohibits unrelated provisions in reconciliation bills.
Cuts to Green Energy Tax Credits
If the House package becomes law, tax credits established during the Biden administration for electric vehicles would be phased out within two years. Additionally, renewable energy tax benefits would be curtailed, with new restrictions likely disqualifying numerous projects. The proposed changes include the elimination of a $7,500 credit for qualifying electric vehicle purchases, as well as a $4,000 credit for eligible used vehicles, and the support for home refueling infrastructure.
Updates made shortly before the vote further weakened key climate initiatives established under the 2022 Inflation Reduction Act, despite revisions that sought to preserve some credits for nuclear energy projects.
Reducing Funding for Consumer Financial Protection
The bill would further limit the budget of the Consumer Financial Protection Bureau (CFPB), which has already been negatively impacted by policies from Elon Musk’s Department of Government Efficiency (DOGE). House Republicans propose lowering the cap on funding from the Federal Reserve to the CFPB from 12 percent to 5 percent of the Federal Reserve’s total operating costs. This cut would diminish the agency’s capability to handle consumer complaints related to issues like foreclosures and credit card fraud and to oversee digital payment services.
Funding for Border Technology
Included in the bill is a substantial allocation for border security, with $12 billion earmarked to reimburse states for their border efforts. The legislation proposes over $46 billion to enhance and extend the wall along the US-Mexico border, along with $1 billion invested in technologies aimed at detecting drugs and contraband. It also allocates $2.7 billion for advanced surveillance systems, which include ground detection sensors, integrated surveillance towers, tunnel detection apparatus, unmanned aerial systems, and improved communications tools.
Restrictions on Gender-Affirming Care
Starting in 2027, health care plans acquired via the Affordable Care Act marketplace would be prohibited from including gender-affirming care, such as hormone therapy and surgical procedures. The bill would also prevent Medicaid from covering “gender transition procedures” for both minors and adults while mandating coverage for detransition services.
