The Largely Unreported Example of Bipartisanship on a Major AI Legislation
INTERVIEW ON THE PRICE OF BUSINESS SHOW, MEDIA PARTNER OF THIS SITE.
Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed Alexander Paykin.
The Alexander Paykin Commentaries
On a recent Price of Business show, Host Kevin Price visited with Alexander Paykin.
On July 1, 2025, the U.S. Senate delivered a major win for federalism and responsible AI governance by voting 99–1 to remove a controversial ten-year ban on state and local regulation of artificial intelligence from President Trump’s sprawling tax and spending bill.
The provision, originally introduced in the House, would have blocked any state or municipality from regulating AI systems or automated decision-making technologies for a full decade. Tied to $500 million in broadband and AI infrastructure funding, the ban was a clear effort to sideline local governments just as AI’s impact on jobs, housing, and civil rights is accelerating.
Its removal sends a powerful message: states must remain free to lead, especially when federal leadership is either absent or actively dismantled.
Under the Trump administration, federal policy has shifted sharply toward deregulation. Two new executive orders — one emphasizing “AI dominance” and another focused on workforce development — replaced Biden-era safeguards aimed at preventing algorithmic discrimination. Without a strong federal regulatory framework, local action becomes not just important but essential.
And states are stepping up. California has advanced rules clarifying that employers’ use of automated decision-making tools may still violate state anti-discrimination laws. New York City now requires bias audits for AI hiring software. Other states, including Colorado and Illinois, are exploring their own legislation.
These laws don’t stifle innovation — they ensure it serves people, not just profit. They create a baseline of transparency and accountability that is increasingly necessary in sectors where AI determines who gets hired, who gets credit, and who gets left behind.
The Senate’s vote also reflects a deeper affirmation of the role states play in our democracy. For all the talk about national strategy and global competition, it’s often state legislatures and city councils that first respond to technological shifts, social needs, and economic risks. Blocking that agility — especially in an area evolving as rapidly as AI — would have been a profound mistake.
While the broader tax and spending bill passed narrowly (51–50, with Vice President JD Vance casting the deciding vote), the near-unanimous rejection of the AI moratorium stands out. It’s a reminder that, even amid partisan battles, there is room for agreement when it comes to protecting democratic principles — and the autonomy of states to innovate.
This may not be the last attempt to impose top-down limits on local AI regulation. But for now, the Senate made the right call — and left the door open for states to continue doing what they’ve always done best: lead the way forward.
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