Policy Update: May 2025

Last week, two additional developments in Congress drew particular attention. The first emerged from the Congressional budget debate. On May 13th, 2025, the House Energy and Commerce Committee began markup of the House budget reconciliation bill, a process that extended late into the night and concluded on the morning of Wednesday May 14th. According to multiple reports, the markup was contentious, as lawmakers debated deep cuts to the federal budget and made efforts to reallocate funding to align with the Trump administration’s priorities. The version passed by the Energy and Commerce Committee prioritizes energy infrastructure and technological innovation. Notably, it includes a provision to limit state regulations of artificial intelligence and all automated decision making systems. 

“…no 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 the enactment of this Act.”

This provision comes at a time when dozens of AI-related bills are being introduced or considered in state legislatures nationwide. If enacted it would completely alter the current landscape of AI policy by centralizing regulatory authority at the federal level. Critics warn that such a moratorium could severely restrict states’ ability to regulate the use of algorithms and automated systems. Brett Guthrie (R-KY), Chairman of the Committee on Energy and Commerce, defended the provision, saying:

“…through investments to modernize the Department of Commerce, we can integrate AI systems to make the Department more secure and effective. To protect the integrity of this project, we are implementing guardrails that protect against state level AI laws that could jeopardize our technological leadership.”

Speaker of the House Mike Johnson (R-LA) hopes to pass the budget in the House by Thursday, May 22nd. 

Meanwhile in the Senate, bipartisan momentum is building around online safety for youth. Senators Marsha Blackburn (R-TN) and Richard Blumenthal (D-CT), joined by Senate Majority Leader John Thune (R-SD) and Senate Minority Leader Chuck Schumer (D-NY) re-introduced the Kids Online Safety Act (KOSA) in the 119th Congress. Blackburn and Blumenthal championed KOSA in the 118th Congress, where it passed the Senate with overwhelming bipartisan support (91-3) but stalled in the House. The newly introduced language is nearly identical to the December 2024 version, which received endorsement from Elon Musk,  X CEO Linda Yaccarino – and more recently – Apple. 

You can read our full statement on the reintroduction of KOSA here.