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Debate over AI Heats up as GOP Scraps Moratorium in Annual Defense Bill

House GOP removed a 10-year federal moratorium on state AI rules from the defense bill after bipartisan opposition, amid concerns about AI's impacts on cybersecurity and energy use.

  • Next week, the 2026 National Defense Authorization Act will drop, and House GOP leaders removed the 10-year AI moratorium after pro-AI moratorium Republicans tried to insert it.
  • The Trump administration and allied Republicans advocated a federal moratorium to harmonize rules, pushing for nationwide regulatory uniformity to accelerate data center construction and AI innovation.
  • States are offering tax breaks to attract data centers, despite a Harvard Law School study showing communities face higher energy costs, with opposition from American voters.
  • Regulatory engagement accelerated after lawmakers pressed FERC to prioritize consumers, as House Energy and Commerce Committee Democrats urged the Federal Energy Regulatory Commission to shield American families from rising energy costs.
  • Political pushback and preemption stakes make future venues for AI rules a live question, as Sen. Josh Hawley, R-Mo., condemned the provision and advocates warned a single federal AI standard could block state online safety, zoning and taxation rules.
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Debate over AI heats up as GOP scraps moratorium in annual Defense bill

(The Center Square) – Lawmakers are becoming increasingly concerned about the rapid expansion of AI technology and its impacts on cybersecurity, the power grid, and online safety.

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Washington Reporter broke the news in on Thursday, December 4, 2025.
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