The White House is proposing a new strategy to curb state-level AI regulations, potentially leveraging federal funding to discourage independent state action. As part of its “AI Action Plan,” the administration is urging federal agencies to consider a state’s regulatory environment for AI when making funding decisions. This could mean that states with stricter AI regulations might face funding limitations. The proposal also directs the Federal Communications Commission (FCC) to assess whether state AI rules impede the FCC’s responsibilities. This initiative is reminiscent of a prior congressional effort to impose a 10-year moratorium on state AI regulations, a move that sparked controversy. Critics argue that limiting state control could impede the development of vital safeguards for data privacy, facial recognition technology, and other emerging AI-related concerns.
White House Seeks to Limit State AI Regulations Through Funding Leverage
