GOP Seeks New Routes to Block State AI Laws After NDAA Setback

House Majority Leader Steve Scalise (R-La.) said Tuesday that Republican leaders are exploring alternative legislative vehicles to advance a proposal that would preempt state-level artificial intelligence laws after efforts to include the language in the National Defense Authorization Act (NDAA) stalled.

The push, backed publicly by former President Donald Trump, has divided Republicans during final negotiations over the must-pass defense bill. Party leaders had eyed the NDAA as a convenient vehicle but encountered resistance from members who object to federal preemption of state regulations.

Why Republicans are divided

Scalise acknowledged the political difficulty, saying the proposal requires a separate coalition to pass. "We need to find a place to do it," he told reporters, adding that while adding the language to the NDAA would be "great," it "wasn't the best place for this to fit." He said leaders are "still looking at other places" to pursue preemption and noted the president's continued interest in the issue.

"There's still an interest in making sure that you don't have states like California that wreck the ability to innovate in artificial intelligence, similar to what Europe did to wreck their innovation," Scalise said, criticizing state-level limits and invoking Europe's regulatory environment as a cautionary example.

Republicans previously tried to secure a 10-year moratorium on state AI rules in a tax and spending bill earlier this year, but that language was removed after pushback from GOP colleagues. The renewed effort in late November to add preemption to the NDAA also faced opposition from some members of the party, including Rep. Marjorie Taylor Greene (R-Fla.) and governors such as Sarah Huckabee Sanders (Alabama) and Ron DeSantis (Florida).

Trump has urged Congress to ban state AI laws either by including the language in the NDAA or passing a standalone bill and reportedly considered an executive order to preempt state measures. Lawmakers, however, reportedly asked the president to delay such a step while they pursued legislative options.

Arguments for and against federal preemption

Supporters, including the White House and its allies, argue federal preemption is needed to prevent a patchwork of state rules that could hamper innovation and drive investment away from the U.S. as it competes with China in AI development. "AI is where a lot of new massive investment is going," Scalise said, pointing to multibillion-dollar corporate commitments and saying, "We want that money to be invested in America."

Opponents raise concerns about states' rights and the political implications of preempting state policy. Senate Majority Leader John Thune (R-S.D.) expressed skepticism about the provision's prospects, saying it remains controversial and that lawmakers are seeking a solution that "preserves states' rights." "Right now, as you know, both sides are kind of dug in," he said.

As negotiations continue, Republican leaders are weighing whether to pursue the preemption language in another bill or to craft standalone legislation that can build the necessary coalition. The debate is likely to remain a flashpoint within the GOP as lawmakers balance innovation policy, federalism, and political strategy.

Reporting by Emily Brooks and Alex Bolton.