Public policy advocates in Virginia are calling for a decade-long pause on state-level artificial intelligence (AI) regulations, aiming to give Congress the chance to take the reins. The Virginia Institute for Public Policy, which champions individual opportunity and economic growth, has officially backed a proposed “10-year moratorium” on AI regulations. This pause would allow Congress to leverage its authority under the Commerce Clause to establish a uniform federal framework.
Caleb Taylor, the director of policy at the Virginia Institute, argues that AI is unique in its potential to impact interstate commerce, national security, and global competitiveness. While the institute generally supports state-level decision-making, it recognizes that AI’s implications are too significant to be left to a patchwork of state laws.
In a statement, Taylor pointed to international competitors like China, which is rapidly advancing its own AI capabilities with systems such as DeepSeek R1. He warned that a fragmented approach to AI regulation in the U.S. could stifle innovation and hinder America’s standing in the global AI race. “When the internet first emerged, the U.S. adopted a light-touch regulatory approach,” Taylor noted. “If we’d regulated the internet like some state legislators are trying to regulate AI, we might not have the digital landscape we enjoy today.”
This perspective aligns with Virginia’s Republican Governor Glenn Youngkin, who vetoed House Bill 2094 in March. He deemed the proposed regulatory framework overly burdensome, emphasizing that government should empower innovators rather than stifle progress. Youngkin pointed out that existing laws already cover essential areas like consumer protection and data use, making the new regulations unnecessary, especially for smaller businesses that may lack the resources to comply.
In January 2024, Governor Youngkin issued Executive Order 30, which offered a more focused approach to AI regulation. This order prioritized integration of AI within state agencies, K-12 schools, and law enforcement, steering clear of heavy-handed regulations.
Advocates for the moratorium argue that it would provide Congress with the time needed to consider the societal, economic, and ethical ramifications of AI. Taylor emphasized that the rapid pace of technological advancement necessitates careful consideration. “State legislators may act out of fear of the unknown and rush to regulate AI, but only Congress can adequately address its broader implications,” he stated.
Former President Donald Trump has also advocated for a 10-year moratorium on state-level AI regulations. His proposed legislation, the One Big Beautiful Bill Act (H.R.1), recently passed the U.S. House of Representatives and aims to prevent states from enforcing laws that restrict or regulate AI technologies for a decade following its enactment. The bill does allow exceptions for state laws that facilitate AI deployment or comply with federal requirements.
Additionally, the legislation allocates $500 million through 2034 for the Department of Commerce to modernize federal IT systems using AI, highlighting the importance of efficiency and cybersecurity. This funding could pave the way for lucrative opportunities for companies like Palantir, a firm renowned for its data analytics and AI solutions.
As Virginia and the nation grapple with the implications of AI, the push for a moratorium reflects a broader conversation about the balance between innovation and regulation. With technology evolving at breakneck speed, the call for thoughtful, cohesive policies is more pressing than ever. As we move forward, it remains crucial for lawmakers to work collaboratively with innovators, policymakers, and communities to ensure that the U.S. remains at the forefront of the AI revolution.