Federal AI Preemption vs. State Reality

Mapping the 2026 Regulatory Landscape

On March 20, 2026, the White House said that Congress should “preempt state AI laws” that it views as too burdensome, and laid out a framework for how it wants Congress to address concerns about artificial intelligence without curbing growth or innovation in the sector.

The legislative blueprint outlines a half-dozen guiding principles for lawmakers:

  • Protecting children
  • Preventing electricity costs from surging
  • Respecting intellectual property rights
  • Preventing censorship
  • Educating Americans on using the technology

House Republican leaders quickly endorsed the framework and said they’re ready to work with Democratic leaders to pass legislation. This may be difficult as divisions over AI have been made clear by Democrats.

In the meantime, the States continue to work to pass their own legislation.

California has almost 30 bills under consideration, including:

  • Assisting victims of online exploitation, including K-12 students (AB 2291)
  • Removing nonconsensual intimate images from online platforms (SB 1217)
  • Providing for protections for employees from punishment for refusing to use AI (AB 2148)
  • Prohibiting recriminations against healthcare workers overriding AI recommendations (AB 2575)
  • Expanding protections against unauthorized use of digital replicas (SB 1111)

New Jersey has recently considered almost 20 measures, such as:

  • Amending child endangerment laws to include exposure to sexual content through AI technology (AB 2767)
  • Establishing standards for AI data centers – including energy generation and storage requirements (AB 4710)
  • Establishing the “Fair Price Protection Act” which prohibits retail food stores and third-party delivery platforms from using surveillance-based price setting (SB 3717)
  • Restricting the use of AI-generated content in election campaigns, requiring clear labeling and prohibiting deceptive content (AB 4741)

More than 25 states are actively considering measures on topics ranging from regulating the use of algorithmic software for setting rental rates, consumer-protections for the resale of event tickets that may be manipulated by bots, regulating the use of automated driving systems, and requiring K–12 schools and public colleges to develop education frameworks for generative artificial intelligence.

The data shows that the States are trying to pass legislation similar to the framework suggested by the White House, with the same goals in mind - to address concerns without curbing growth or innovation in the industry. 

Legislation like this can influence your business strategies and objectives if you’re not prepared for the changes. Reach out with your questions and to discuss how you can develop a proactive approach that will protect your operations from potential vulnerabilities and to move forward with confidence.

 

Connect With Us to find out how Stateside Associates can help you navigate artificial intelligence policy with confidence.