Trump’s “One Big Beautiful Bill” could turn the US into an AI Wild West until 2035

President Trump’s latest bill package – dubbed the “One Big Beautiful Bill”– might not scream tech at first glance, but deep inside, it hides something that could reshape the future of AI in the US.

Tucked into this massive Republican-led budget bill is a clause that would block states from regulating artificial intelligence for the next 10 years. That includes AI models (like the ones from OpenAI or Google), systems and even products that use AI – everything from self-driving cars and smart home devices to social media platforms and medical tools.

This ban is part of a $500 million federal push to modernize government systems using AI and automation. Supporters say the move will help the US dominate in AI by cutting out the current mess of state-by-state regulations that slow companies down. The Chamber of Commerce is fully behind it, arguing that businesses need freedom to innovate without a regulatory headache.

But critics aren’t buying it. They say the moratorium is so broad that it would stop states from protecting consumers against harmful AI use, like biased hiring algorithms, deepfakes and addictive chatbots. Here’s the exact language from the bill:


And since there is no federal AI regulation ready to go, people would be stuck waiting on Congress – which, at the moment, doesn’t even have a draft bill. That means no real oversight for a decade unless someone takes a company to court.

Plus, critics see it as a massive win for big tech companies – some of which have donated to Trump. And while Trump’s ally Elon Musk recently said he’s “disappointed” by the cost of the new bill, his frustration is about the spending – not the AI clause, which could benefit companies like his.

AI regulation in the US has been all over the place. There is no central federal oversight, so states have tried to fill the gap with their own rules. Meanwhile, AI is spreading fast across both government and private sectors, often faster than any laws can catch up.

The Biden administration once introduced an AI Bill of Rights to set some guardrails, inspired by the EU’s approach. It encouraged agencies to study AI’s risks and train employees, but that framework is no longer active. Now, under Trump’s new plan, the focus is on pushing AI innovation forward – not on slowing it down with rules.