How Trump AI Law Could Spark a constitutional Crisis

Newsweek

27-05-2025

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Trump's big beautiful bill may have passed the House, but experts have told Newsweek that the legislation's provisions on artificial intelligence could face an even greater challenge in the courts.
The bill impacts a huge range of policy areas and industries, but its ban on states' ability to enforce AI regulations could be one of the most legally challenged parts, as it arguably contradicts existing state laws.
The Context
The more than 1,000-page bill passed 215-214 following days of negotiations. Republicans Thomas Massie of Kentucky and Warren Davidson of Ohio voted against it, joining every House Democrat.
The bill, which includes about $4.9 trillion in tax breaks, was passed after weeks of negotiations and talks with Republicans, some of whom were concerned about constituents losing critical benefits and others who called for further budget cuts.
What To Know
Despite attempts during the Biden administration to create an AI Bill of Rights, the U.S. does not have any federally binding laws about how AI should be regulated.
If signed into law, Trump's bill would be the first on a federal level to dictate how states should treat artificial intelligence, after Trump abolished Biden's executive order on AI ethics and safety standards in January.
The bill calls for the end to all state AI regulations, and bans states from enforcing existing regulations, reading: "No state or political subdivision thereof 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."
Here's the problem: several states already have AI regulations, and many more could be on the way. Utah, California, and Colorado have all passed laws addressing rights and transparency surrounding AI development and usage, and 40 bills across over a dozen states are currently in the legislative process.
Margaret Hu, a professor of Law at William & Mary Law School and director of the Digital Democracy Lab, told Newsweek that Trump's bill could clash with states' status as "laboratories of democracy," which could see parts of the bill challenged in the courts if passed.
Photo-illustration by Newsweek/Getty
"Prohibiting or limiting states and local governments from regulating AI would likely face an immediate challenge in the courts," Hu said.
"Under the Supremacy Clause of the Constitution, Congress can pass legislation that preempts states from regulating in specific fields. But in the absence of a comprehensive scheme of AI regulation or specific AI system regulation in federal law, the Constitution reserves broad regulatory authority for the states."
"States are 'laboratories of democracy.' In the context of a field as new as AI law and policy, states and municipalities have been 'AI law laboratories of democracy.' If and when an omnibus AI law is passed by Congress, then Congress can say: we're now regulating the field at the federal level and states should not interfere or pose an obstacle to federal regulation.
"But that's not where we are right now. It's highly problematic constitutionally for Congress to say: 'we don't want to regulate AI and we don't want states to regulate AI either.'"
What People Are Saying
Senate Majority Leader John Thune said on Wednesday that it would be unlikely that the bill would see any serious changes in the Senate, saying: "When it comes over here, I think [Speaker Mike Johnson] would like to see as little change to the product as possible, because they've cobbled together a delicate balance over there.
"The Senate will have its imprint on it."
What Happens Next
Trump's bill is now headed for the Senate, which it will need to pass before the president can sign it into law.