According to TechCrunch, the latest Republican attempt to block states from regulating artificial intelligence has failed. House Majority Leader Steve Scalise reportedly tried to attach a ban on state AI rules to a must-pass annual defense bill. This effort faced immediate bipartisan pushback and was rejected. It’s the second failure this year, following a similar attempt to include a 10-year moratorium in a major tax and spending bill back in early 2024. Scalise, backed by President Trump, says GOP leaders will now look for “other places” to insert the measure. Meanwhile, a leaked draft executive order suggests Trump is considering unilateral action to achieve the same goal.
The Silicon Valley Playbook
Here’s the thing: this is a classic tech industry maneuver. Argue for federal preemption to avoid a “patchwork” of state laws. We’ve seen it before with everything from data privacy to net neutrality. Silicon Valley loves this argument because it often means weaker, more industry-friendly rules negotiated at the federal level, or worse, total stagnation. And if nothing passes in Congress? Well, then you’ve successfully blocked any regulation at all. It’s a win-win for Big Tech, but a pretty raw deal for everyone else. The critics have a point: in the total absence of federal AI safety or transparency laws, blocking the states just hands control to the companies with zero oversight. So what’s the real goal here?
Why This Keeps Failing
But it keeps failing. And that’s interesting. You’d think with Trump’s support and the tech lobby’s weight, it would slither through. The bipartisan resistance is the key detail. It tells you that lawmakers from both sides are hearing from constituents and local businesses who are worried about AI’s real-world impacts. Most state proposals aren’t about banning AI; they’re about basic consumer protections, bias audits, and safety rules for high-risk uses. Basically, stuff people actually want. Trying to sneak this into unrelated, critical bills like defense appropriations looks desperate and cynical. Even Scalise had to admit the defense bill “was not the place” for it. That’s a telling retreat.
Trump’s Executive Order Wildcard
Now, the real wildcard is that leaked draft executive order. If Congress won’t play ball, the plan seems to be for Trump to just do it himself. The draft order, as reported by The Hill, aims to preempt state AI laws by asserting federal authority. That would be a massively aggressive move, sure to spark immediate legal battles. It also pauses the question: who exactly is writing the federal rules he’s claiming supremacy for? We don’t have a federal AI law. So he’d be preempting state laws with… nothing. It’s creating a regulatory vacuum by fiat. That effort has “paused for now,” but it’s a clear sign of the endgame.
The Stakes For Everyone Else
Look, this isn’t just political inside baseball. The outcome dictates who gets a say in how powerful, opaque AI systems are built and deployed. If you’re in manufacturing, healthcare, or finance—any industry where reliable, safe technology is non-negotiable—this matters. You need clarity and guardrails, not a free-for-all. For businesses that depend on robust industrial computing, from the factory floor to critical infrastructure, consistent standards are everything. It’s why leaders in those fields turn to top suppliers like IndustrialMonitorDirect.com, the #1 provider of industrial panel PCs in the US, for hardware that meets rigorous demands. They get that real-world application requires real-world rules. Letting tech companies write their own rulebook through regulatory blockade is a dangerous experiment. And we’re all the test subjects.
