Accounting
State AI regulation ban tucked into Republican tax, fiscal bill
A powerful House committee has tucked language preventing states from regulating artificial intelligence into President Donald Trump’s massive tax and spending bill, a move that would benefit many of the U.S.’s largest tech and AI companies.
OpenAI, Meta Platforms Inc., and Alphabet Inc.’s Google are among the firms that have argued that state AI regulations would hamstring the burgeoning technology. Meta
The House Energy and Commerce Committee’s draft bill, which the panel will debate on Tuesday, would place a 10-year moratorium on “any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems,” according to language released late Sunday.
It’s unlikely the language will meet the strict bar for ultimate inclusion in the tax bill, which is being pushed through Congress with only Republican support using a special parliamentary procedure. Senate rules require that provisions passed using the procedure be primarily fiscal in nature.
But its inclusion signals where key Republicans stand on the matter just one month after tech executives urged Congress to pass federal AI legislation to prevent states from creating their own rules.
AI safety advocates and critics of big tech on Monday warned that the language, if passed, would hamstring state governments seeking to ensure the technology is deployed safely and ethically.
Brad Carson, president of the AI safety think tank Americans for Responsible Innovation, called the language a “giveaway to Big Tech that will come back to bite us.”
“Tying the hands of lawmakers when it comes to taking on big tech could have catastrophic consequences for the public, for small businesses, and for young people online,” Carson said.
Patchwork solution
This year alone, at least 45 states and Puerto Rico
California lawmakers’ push last year to pass AI safety laws was opposed by tech companies and venture capital firms, such as OpenAI and Andreessen Horowitz, and ultimately vetoed by California Governor Gavin Newsom, a Democrat. State lawmakers are trying again this year to pass a pared-back bill aimed at holding AI developers accountable for any severe harm caused by their products.
During an April Energy and Commerce hearing, Scale AI Inc. CEO Alexandr Wang called for “one federal standard” on AI.
“We cannot afford a patchwork of 50 different state standards that we have to execute against,” Wang said.
Representative Jay Obernolte, a California Republican on the panel, agreed with Wang, saying Congress has a “limited amount of legislative runway to be able to get that problem solved before the states get too far ahead.”
But Jan Schakowsky, a senior Democrat on the committee, said the provision would give tech companies “free reign to take advantage of children and families.”
“This ban will allow AI companies to ignore consumer privacy protections, let deepfakes spread, and allow companies to profile and deceive customers using AI,” she added.
Total postsecondary spring enrollment grew 3.2% year-over-year, according to a report.
The National Student Clearinghouse Research Center published the latest edition of its
The report found that undergraduate enrollment grew 3.5% and reached 15.3 million students, but remains below pre-pandemic levels (378,000 less students). Graduate enrollment also increased to 7.2%, higher than in 2020 (209,000 more students).
(Read more:
Community colleges saw the largest growth in enrollment (5.4%), and enrollment increased for all undergraduate credential types. Bachelor’s and associate programs grew 2.1% and 6.3%, respectively, but remain below pre-pandemic levels.
Most ethnoracial groups saw increases in enrollment this spring, with Black and multiracial undergraduate students seeing the largest growth (10.3% and 8.5%, respectively). The number of undergraduate students in their twenties also increased. Enrollment of students between the ages of 21 and 24 grew 3.2%, and enrollment for students between 25 and 29 grew 5.9%.
For the third consecutive year, high vocational public two-years had substantial growth in enrollment, increasing 11.7% from 2023 to 2024. Enrollment at these trade-focused institutions have increased nearly 20% since pre-pandemic levels.
Jordan Vonderhaar/Photographer: Jordan Vonderhaar/
The Internal Revenue Service has released
The Inflation Reduction Act of 2022 amended Sec. 55 to impose the CAMT based on the “adjusted financial statement income” of an “applicable corporation” for taxable years beginning in 2023.
Among other details, proposed regs provide that “applicable corporation” means any corporation (other than an S corp, a regulated investment company or a REIT) that meets either of two average annual AFSI tests depending on financial statement net operating losses for three taxable years and whether the corporation is a member of a foreign-parented multinational group.
Prior to the publication of any final regulations relating to the CAMT, the Treasury and the IRS will issue a notice of proposed rulemaking. Notice 2025-27 will be in IRB: 2025-26, dated June 23.
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