
Congress Must Act: Preempt State AI Patchwork to Fuel America’s—and Louisiana’s—Innovation Fire
As the National Defense Authorization Act (NDAA) barrels toward a December showdown, House Republicans, led by Louisiana’s own Speaker Mike Johnson and Majority Leader Steve Scalise, are considering a much-needed moratorium on state AI regulations. This echoes President Donald J. Trump’s urgent X post: “Investment in AI is helping to make the U.S. Economy the ‘HOTTEST’ in the World — But overregulation by the States is threatening to undermine this Growth Engine.” Congress should enact this targeted pause—a 10-year moratorium on enforcing new state or local AI-specific rules, excluding criminal penalties or tech-neutral laws—to halt the regulatory flood drowning innovation, especially in pro-business havens like Louisiana.
The deluge is enormous: In 2025’s first four months, states unleashed over 1,000 AI bills—eight daily—spawning a patchwork that already mandates conflicting audits, disclosures, definitions, and more. New York’s RAISE Act demands third-party inspectors for “high-risk” systems under ambiguous metrics, while others clash on what counts as “artificial intelligence” or a “consequential decision.” California’s deepfake bans collide with Texas’s anti-DEI mandates, forcing developers into a 50-state compliance maze that tilts the field to Big Law firms and deep-pocketed giants. Small innovators—40% of U.S. small businesses now using AI, including 35,000 in Louisiana—face crushing legal fees and risk aversion, delaying launches and hiking costs by up to 30%. As Cato’s Jennifer Huddleston warns, the “Sacramento Effect” kicks in: Firms default to the strictest rules, exporting California-compliant products nationwide and smothering pro-innovation states like Louisiana, where Meta’s investments have already created jobs in hospitals, schools, and businesses.
This isn’t mere bureaucracy; it’s an innovation killer handing China the keys. Beijing’s $100 billion AI war chest faces no federalism fractures, while our startups flee overseas or fold under extraterritorial burdens. Louisiana’s spirit—embracing AI to save lives and attract growth—exemplifies the peril: Without pause, conflicting regs could undo our progress, leaving communities reliant on those 35,000 small firms high and dry. A coalition of state-based and national organizations, including the Pelican Institute and others that champion free market principles and federalism, urged Congress earlier this year: This moratorium creates “breathing room” to prevent a “regulatory land rush,” preserving tech-neutral state actions like streamlined permits while Congress crafts coherent federal standards.
The Commerce Clause demands it. Article I, Section 8 empowers Congress to regulate interstate commerce—AI’s domain, from cross-border data flows to national algorithms—safeguarding uniform algorithmic services against state silos that impose undue burdens. The Pike test dooms extraterritorial overreach, echoing the Internet Tax Freedom Act’s “learning period” moratorium that spurred growth by buying time for evidence-based policy. States aren’t laboratories here—they’re roadblocks to our $4.4 trillion AI bounty by 2030.
President Trump’s blueprint finds allies in Louisiana’s resolve and that state coalition’s plea. With NDAA talks peaking pre-Thanksgiving, more delays would be defeat. Preempt the patchwork, revive reverence for existing laws, and let America’s engine—and Louisiana’s—roar unchained.



