CONGRESS WANTS TO FREEZE EVERY STATE AI LAW IN AMERICA FOR THREE YEARS AND REPLACE THEM WITH A SINGLE FEDERAL RULE
A bipartisan pair of House representatives have released what may be the most consequential AI legislation proposed in the United States since the technology became unavoidable. Representatives Jay Obernolte of California and Lori Trahan of Massachusetts dropped a 269-page discussion draft of the Great American Artificial Intelligence Act on June 4, and the central controversy is simple: the bill would bar states from passing new AI development regulations for three years.
Colorado, Illinois, Texas, and a dozen other states have been building their own AI governance frameworks. This bill effectively says stop. Under the proposal, states could still regulate how AI systems are used within their borders, but they would lose the right to legislate how those systems are built. That distinction between use and development is the battle line.
The federal framework the bill creates includes mandatory semi-annual third-party audits for large AI developers, a formalized Center for AI Standards and Innovation inside the Commerce Department funded at $100 million per year, and provisions covering AI in the workforce, cybersecurity, and international cooperation.
Consumer advocates are already pushing back hard. Public Citizen called the preemption clause a direct attack on state-level consumer, worker, and child protections. The bill has not yet been formally introduced to Congress and is currently soliciting feedback from stakeholders. That consultation period sounds procedural. What it really is is the opening round of a fight that will define who governs AI in America for the next decade.
Keywords: Great American AI Act, federal AI regulation, AI state preemption, Congress AI bill 2026