US Reconciliation Bill: Hands-Off Approach to AI Regulation Sparks Backlash

A US reconciliation bill, while primarily focused on Medicaid cuts and healthcare fee increases, includes a provision limiting state-level AI regulation. This has drawn criticism from tech safety groups and some Democrats, who argue it benefits Big Tech while leaving consumers vulnerable to AI harms like deepfakes and bias. The move aligns with the Trump administration's close ties to the tech industry, with several prominent tech CEOs advising the administration. By restricting states' ability to use federal funds for AI oversight, the provision could stifle state-level initiatives and reinforce a deregulatory approach.