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.@DavidSacks is absolutely right.
In July of last year, I wrote a piece outlining 11 Elements of American AI Dominance. In that piece, I discussed the importance of a Federal Preemption to mitigate the risks posed by an ever growing patchwork of state regulations on AI. 👇
The Senate’s current version of the One Big Beautiful Bill has a Federal Preemption clause and that is one more reason to support the Bill.
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2. Federal Preemption
Some states are considering state-level laws and rules focused on risk-mitigation in AI. California’s SB 1047 is the latest example. The law puts in place complex reporting requirements for developers who fine-tune models or develop models that cost more than $100 million to train. The law’s penalties are high, and its language is vague; the result will be uncertainty and paralysis, discouraging innovative entrepreneurship in this space.
A federal preemption would help ensure uniformity and consistency across all states, drastically simplifying compliance for businesses, individuals, and enforcement agencies alike. Dealing with a single federal law is generally more efficient than navigating a patchwork of 50 state laws. This would reduce complexity, legal costs, and administrative burden for all stakeholders involved. Federal preemptions typically focus on issues that involve activities that cross state lines, such as commerce and telecommunications, and AI seems to fall in this category. Finally, some issues, like national security or certain aspects of healthcare, are often better addressed at a federal level to ensure a cohesive national strategy and response.
Areas of agreement: There is generally broad opposition in the technology world to the multiplication of state-level laws on artificial intelligence. There is also general agreement that AI is a highly strategic technology and should be regulated by institutions which can consider national security — the strict legal purview of the federal government.
Areas of debate: The jury is out on what the substance of a potential federal preemption or law could or should look like. If the debate to pass a federal preemption gains traction, some in Congress will likely attempt to broaden the bill to include topics around safety or other AI issues orthogonal to preempting state-level laws.

30.6.2025
What is the most realistic way for the U.S. to lower debt/GDP?
Growth
What is the biggest driver of growth?
Productivity
What is expected to drive productivity most?
AI
Yet over 1,000 bills have been introduced in state legislatures to hobble AI.
We need preemption in OBBB.
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