A proposed amendment to a federal budget reconciliation bill is raising alarms across the political and professional spectrum.
Passed by the House Energy and Commerce Committee on May 13, the amendment would block states from enforcing any laws or regulations related to artificial intelligence for a full decade.Ā
The controversial language reads: ā[N]o state or political subdivision may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10-year period beginning on the date of enactment of this Act.āĀ
In response, Colorado Attorney General Phil Weiser and 39 other state attorneys general sent a bipartisan letter to Congress opposing what they describe as a sweeping federal overreach. According to Weiserās office, the amendment would effectively dismantle existing consumer protections without offering a meaningful federal regulatory alternative, leaving individuals and communities vulnerable to the unchecked consequences of AI technologies.Ā
Critics argue that silencing state oversight would remove a critical layer of accountability in the fast-evolving AI landscape.
Without state involvement, they warn, AI systems could more easily exploit consumer data, spread disinformation via deepfakes, and amplify biased or discriminatory algorithms.Ā
Support for the opposition is widespread.
More than 140 organizationsāincluding tech workers, civil society groups, and academic institutionsāhave voiced their concerns in a separate letter to House leaders. As reported by The Hill, these groups argue that the amendment would āremove accountability for developing technologyā and hinder efforts to build ethical, transparent AI systems.Ā
Some lawmakers have also pushed back. U.S. Rep. Jan Schakowsky (D-Ill.), the ranking member of the House subcommittee on commerce, manufacturing, and trade, warned that the amendment could ālet deepfakes spreadā and allow AI companies to āprofile and deceive consumers.āĀ
The future of the amendment remains uncertain.
A Nextgov report noted that the Senate may ultimately reject the provision under the Byrd Rule, which restricts unrelated measures from being added to budget reconciliation bills.Ā
In the meantime, the conversation around AI oversight continues to intensify. The House Subcommittee on Commerce, Manufacturing, and Trade is scheduled to hold a hearing titled āAI Regulation and the Future of U.S. Leadershipā on May 21. In a statement ahead of the hearing, subcommittee leaders U.S. Reps. Brett Guthrie (R-Ky.) and Gus Bilirakis (R-Fla.) emphasized the need for a “pro-innovation agenda” to maintain global competitiveness and avoid what they see as the regulatory missteps of other nations.Ā
Despite the controversy, the House passed the legislative package on Thursday, according to The Hill.
The bill now heads to the Senate, where significant revisions are expected.Ā
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Author:Ā Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clientsā criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jenniferās guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
