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As Washington Looks for Way to Pass AI Regulation Moratorium, State Laws to Protect Children in Danger
State laws that seek to protect children online could come under threat by continuing efforts in Washington to create an AI regulation moratorium on the state and local level.
President Donald Trump announced on Monday that he would be signing an executive order to restrict individual state regulations of artificial intelligence, the latest development in an ongoing fight in Washington about how AI is regulated in the United States.
Congress, at the urging of the White House, has considered adding an AI regulation moratorium in two massive legislative vehicles this year: the One Big Beautiful Bill and the yet-to-be-passed National Defense Authorization Act.
“There must be only One Rulebook if we are going to continue to lead in AI,” the president said in a Truth Social post adding, “We are beating ALL COUNTRIES at this point in the race, but that won’t last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS.”
AI Provision Left Out of NDAA
The executive order would likely be a stand in for future legislation after legislative efforts, most recently in the NDAA, have failed. According to a report from Axios, Senate Commerce Committee Chairman Ted Cruz, R-Texas, and House Majority Leader Steve Scalise, R-La., were trying to add language into the NDAA that would preempt or override state-level AI regulations.
Some of the bills that would come to regulate AI on the federal level would likely pass through Cruz’s Senate committee as the Texas senator eyes another White House bid in 2028.
What Policy Experts Are Saying
Policy experts and conservative activists remain divided on the moratorium, but its opponents are quick to point out that the moratorium could put state laws to protect children at risk.
Several states have already sought to provide legal guardrails on how the emerging technology can be used, seeking to provide protections for consumers and prevent the abuse of American citizens through AI tools like synthetic pornography.
Daniel Cochrane, a senior research associate at the Center for Technology and the Human Person at the Heritage Foundation, noted the importance of states in aiding Americans.
“States are Americans’ first line of defense against Big Tech. While Congress dithers—failing year after year to enact common sense standards to protect kids from predatory social media platforms, secure privacy, and address emerging risks from generative AI—states are filling the void,” Cochrane told The Daily Signal.
“From prohibiting AI generated child sexual abuse material (CSAM) and placing limits on AI ‘therapists’ and ‘companions,’ to safeguarding artists’ creative rights and building public sector capacity to deploy AI responsibly, states are aligning AI with Main Street American values,” Cochrane said.
Cochrane recommended a cooperative approach when asked about the upcoming executive order.
“To strike the right balance, both the federal government and states need to work together. That will require a transparent, deliberative process to ensure AI promotes flourishing for all Americans. The administration should use its convening power to bring state officials, parents, labor, privacy advocates, and other parties together to work toward a federal standard,” Cochrane continued.
The president’s announcement regarding the AI executive order comes in the wake of a draft executive order on the topic was leaked last month. Some legal experts raised initial concerns about the leaked draft executive order, and it remains to be seen whether those issues will be addressed in the executive memorandum that is expected to be issued this week.
Don’t Mess With Texas
Texas has taken steps to protect kids while making the Lone Star State an attractive place for technology companies to do business.
Texas has signed laws such as the Securing Children Online through Parental Empowerment (SCOPE) Act and Texas Responsible Artificial Intelligence Governance Act (TRAIGA). The SCOPE Act seeks to protect minors from content that “promotes, glorifies, or facilitates suicide, self-harm, eating disorders, substance abuse, stalking, bullying, harassment, grooming, trafficking, child pornography, or other sexual exploitation or abuse.” TRAIGA, meanwhile, prevents the development or distribution of AI systems that produce deepfake child or other pornographic content.
The Daily Signal spoke with David Dunmoyer, the associate vice president of campaigns at the Texas Public Policy Foundation, who praised the regulatory approach of Texas on the issue of AI.
“I worked very closely with a lawmaker who wrote [the Texas Responsible AI Governance Act], and we spent over two years,” Dunmoyer explained, adding “We had an AI council. We heard from government agencies and how they’re using AI. We had multiple hearings in the [state] house, in the [state] senate, hearing from the private sector, hearing from industry.”
The policy expert elaborated on the efforts taken to accommodate the needs of AI companies.
“And then on top of that, we had a year plus long stakeholder process, specifically for that one bill, where we brought in over 250 industry leaders to hash out and build consensus around what a responsible AI bill would look like,” he explained.
What Role Could the Federal Government Play?
Lance Christensen, the Vice President of Government Affairs and Education Policy at the California Policy Center, emphasized the need for the federal government to be involved with a baseline regulatory framework and clear standards.
“This is one of the few areas where I say the Congress maybe should have a little more input about what’s actually going to happen and set a framework so the states can actually have good and applicable laws that don’t constrain other states,” Christensen told The Daily Signal. He expressed concern that major AI corporations could harness particular states’ regulations to crush their competition in other states.
“I think somebody in Congress needs to step up and say, we’re going to address this now. This is going to happen before the end of 2026 and not make threats about funding for other things until they have some sort of framework in place,” Christensen said referencing the broadband funding that states could have lost if they had not complied with the moratorium provision that was ultimately excluded from the One, Big Beautiful Bill.
Ted Bolema, a senior fellow with the Mackinac Center for Public Policy, which is located in Michigan, expressed support for a version of the moratorium. He expressed worry that regulating AI at the state level would make it difficult for businesses to operate across state lines.
“The point of the moratorium is to avoid the patchwork problem and make it possible for AI innovators to innovate with a clearer set of rules that they are to follow,” Bolema told The Daily Signal.
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