State AI Laws Survive the One Big Beautiful Bill

July 16, 2025

By: Jessica L. Copeland, Marc J. Krawiec, and Sarah Jiva*

The Senate’s removal of the proposed 10-year moratorium on state regulation of artificial intelligence from the “One Big Beautiful Bill Act” preserves the authority of states to regulate AI technologies within their jurisdictions. This outcome ensures that existing and emerging state-level frameworks—spanning industries such as insurance, healthcare, finance, employment, and consumer protection—remain enforceable in the absence of comprehensive federal oversight.

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This article was originally published on July 14, 2025, by the New York Law Journal.

*Special thanks to Summer Law Clerk Sarah Jiva for her assistance in the preparation of this memo.