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State AI laws could go away under ‘Big Beautiful Bill’

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State AI laws could go away under ‘Big Beautiful Bill’

Jun 19, 2025 | 11:00 am ET
By Jordan Hansen
State AI laws could go away under ‘Big Beautiful Bill’
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The 'Big Beautiful Bill' working its way through the federal legislature could impact Montana state artificial intelligence laws.(Photo by Jane Norman/States Newsroom)

Tucked deep inside the federal reconciliation bill, also known as the Big Beautiful Bill Act, is a stipulation that could impact artificial intelligence usage in America for decades.

States will not be allowed to enforce any law for a 10-year period, “limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce.” The bill text also says states could not enforce artificial intelligence laws during the moratorium.

Montana is a leader in artificial intelligence legislation according to one legislator who driving much of the state’s legislation. Both Republicans and Democrats expressed concern this week the provisions in the Big Beautiful Bill Act could undo progress when it comes to protecting privacy and as a potential state rights issue.

Artificial intelligence is not an issue following traditional party lines, and some U.S. Senators are trying to send that message. On Wednesday, Washington Democratic Sen. Maria Cantwell, Tennessee Republican Sen. Marsha Blackburn, Washington Attorney General Nick Brown, and Tennessee Attorney General Jonathan Skrmetti held a joint Zoom press conference on the issue.

Blackburn spoke, Cantwell answered a variety of questions, and the attorneys general talked about some of the laws they’ve had on the books and the impact a ban could have. 

“Hopefully, as a result of those laws there, there are guardrails baked in that prevent the worst abuses that we fear,” Skrmetti said in response to a Daily Montanan question. “But this is a technology still in its infancy, and the earlier the law can shape the contours of what products provide, the safer people will be. And if we lose the ability for the states to regulate that, you know, Congress, even moving as fast as it can, will not be able to keep up with all of the risks.”

Montana artificial intelligence legislation was held up as an example of some of the laws that could become unenforceable during the press conference. None of Montana’s federal delegation returned a request for comment on this story.

The Treasure State has a slate of artificial intelligence laws on the books, many crafted or pushed by state Sen. Daniel Zolnikov, a Billings Republican, who has been a leader on the issue. Zolnikov, along with Rep. Jill Cohenour, a Helena Democrat, and Rep. Braxton Mitchell, a Flathead Republican, all saw artificial intelligence bills signed by Gov. Greg Gianforte. 

The Republican governor famously sold RightNow Technologies to Oracle for $1.5 billion in 2011, an acquisition that likely helped kickstart Bozeman’s push toward becoming a technology hub.

“Regulation tends to follow, not lead,” Gianforte said during a press conference on April 24 when asked about tech legislation during the session. “So I think we have to be careful as we look at regulations, that we don’t impede the adoption of new innovations. If there’s a problem, let’s fix it.”

Under the 10-year moratorium, Montana might not be able to fix things.

During the April press conference, the governor also pointed to a bill studying social media impacts on mental health, using it as an example of a technological consequence “we could never have anticipated.” He advocated caution but said he wants the government to stay out of the way of advancements. 

Gianforte signed numerous laws passed in 2025 relating to artificial intelligence, cryptocurrency, blockchain and data centers. This included limiting the state government usage of AI and the technology’s use in elections, as well as people’s rights to privacy and to compute.

In Montana, the issue and the reasons people have for their opinion on AI is varied. 

Data centers, which help run the digital modern world, need huge amounts of power and became a topic of discussion at the legislature. Montana’s utility monopoly is in the middle of a public rate case, and some are worried adding more tech infrastructure could make power even more expensive.

For others, it’s trying to protect the average Montanan. That’s where Rep. Coenhour’s approach on the issue comes from including a bill to protect people’s personal data, called name, image, and likeness. On that bill, HB 514, she also worked with the governor’s office, specifically Lt. Gov. Kristen Juras, on amendments to help get it to pass. Juras did not immediately respond to a request for comment. 

Cohenour, along with Sen. Laura Smith, another Helena Democrat, pushed for bills against fabricated explicit images, such as fake sexual images of teens being used more frequently as a bullying tactic.

“I’m scared. And I think Montanans should be scared about their data and the way they’re affected by AI working in these different systems,” Cohenour said in an interview with the Daily Montanan. “It’s scary.”

Zolnikov said that Montana was putting artificial intelligence laws on the books because Congress has done little to regulate the issue. He’s expressed multiple times he feels Montana is far ahead of other states and the federal government on artificial intelligence and other new technologies.

He also expressed a little frustration that some states have fully banned certain artificial intelligence technologies, calling it “an overreaction.” Zolnikov, who believes in open sourcing of code and software over big tech companies controlling the entire industry, wants innovation, but wants sideboards as well.

“It’s kind of a Catch-22. They don’t want states to do it,” Zolnikov said. “They refuse to do it. Now they’re looking at a ban. What do you do?”

He’s well aware of the dangers it can bring, but said that America cannot get behind its “adversaries” in innovation by stifling artificial intelligence.

“There’s a whole other side to this coin,” Zolnikov said, “It’s way above my pay grade, I’ll put it that way.”

Mitchell, who often expresses his support for President Donald Trump, said that while he supports “99%” of the Big Beautiful Bill Act, the 10-year moratorium is not something he can support. He said it undermines the intent of HB 179, which limits government usage of AI.

“We shouldn’t be blocking states from protecting citizens against surveillance abuse, censorship, and tech-driven manipulation,” Mitchell wrote in an email on Wednesday. “I’ll keep standing for individual liberty and limited government, with or without a moratorium. Hopefully it’s stripped out in the Senate or when it goes back over to the House.”