- Some Utah GOP lawmakers oppose a federal AI regulation pause in Trump's budget bill.
- They argue it hinders state progress and stifles local expertise and innovation.
- Sen. Josh Hawley and others seek to remove the provision before Senate approval.
SALT LAKE CITY — Some Utah Republican lawmakers are stepping up calls for Congress to remove a controversial proposal that would effectively pause any state regulations on artificial intelligence for 10 years.
The proposal is included in the budget and tax package, which is currently making its way through the Senate.
The Beehive State has passed some of the first regulations in the rapidly changing industry nationwide, but GOP members of the state House and Senate said the provision in President Donald Trump's "big, beautiful bill" threatens to undo the progress the state has made.
"Utah has taken a very thoughtful and proactive approach to AI policy," Rep. Doug Fiefia, R-Herriman, said Thursday, referencing the state's regulatory sandbox that allows companies to partner with the government to develop safeguards around the technology. "This federal moratorium would freeze this kind of forward-thinking work. It would prevent Utah and other states from responding to new developments, refining guardrails and learning through hands-on policy innovation."
Removing the AI moratorium from the budget package is "essential because this one-size-fits-all pause from Washington stifles progress and sidelines local expertise," said Sen. Heidi Balderree, R-Saratoga Springs, who represents much of Utah's Silicon Slopes. "It undermines the spirit of cooperative governance."
The pair spoke during a virtual call Thursday alongside lawmakers from several other states, which was hosted by Americans for Responsible Innovation, a nonprofit focused on policy and artificial intelligence.
The AI moratorium, which would restrict federal funds for broadband internet access to states that don't freeze regulations on artificial intelligence, has received bipartisan opposition in Congress and Missouri GOP Sen. Josh Hawley has said he will work with Democrats to remove the language before the megabill passes the Senate. It was changed from an earlier House version that included an outright ban on regulation, but the result is likely to be the same.
The Senate rules referee allowed the provision to remain in the bill on Saturday, saying it met the requirements for inclusion in the budgeting process and surprising some lawmakers who expected the parliamentarian to block it, according to Politico.
Attorneys general from 40 states — including Utah's Derek Brown — signed a letter to congressional leaders in May opposing the prohibition on states regulating AI.
"The promise of AI raises exciting and important possibilities. But, like any emerging technology, there are risks to adoption without responsible, appropriate and thoughtful oversight," the letter states. "In the absence of federal action to install this oversight, over the years, states have considered and passed legislation to address a wide range of harms associated with AI and automated decision-making."
Trump administration officials argue, however, that artificial intelligence is key to the future of national security, invoking an AI arms race with China.
"By creating a single national standard for AI, the bill ends the chaos of 50 different state laws and makes sure American companies can develop cutting-edge tech for our military, infrastructure and critical industries — without interference from anti-innovation politicians," Commerce Secretary Howard Lutnick posted on Wednesday. "This is required to stay ahead of our adversaries and keep America at the forefront of AI."
The moratorium didn't draw much public attention at the time of its passage through the House as part of the One Big Beautiful Bill Act last month, but a recent survey from the Institute for Family Studies shows 55% of Americans oppose the moratorium, compared to only 18% who support it. More than a quarter said they were not sure.
Balderree said she is "baffled how this even made it into the big, beautiful bill." She said it's not a "partisan issue" and hopes Washington realizes "the American people are behind us." She noted Utah's track record of being recognized as the state with the best economic outlook, per the conservative-leaning American Legislative Exchange Council, and said the state's long-term approach to business and regulation deserves credit.
"Here in Utah, we don't wait for permission to build the future," she said. "A federal AI moratorium might play in D.C., but out West, we believe in innovation, not hesitation."
The bill would ultimately hurt consumers in Utah and across the U.S. who are exposed to the risks of AI, Fiefia said, "and for the state of Utah, that's a nonstarter for us."
