CEI Supports Federal Preemption to Address Fragmented State AI Laws and Protect U.S. Competitiveness
Urging Federal Preemption of Certain State Laws and Regulations Specific to Artificial Intelligence
To the Members of Congress,
On behalf of our respective organizations, we write to express our strong support for a targeted federal approach that temporarily preempts certain state laws and regulations specific to artificial intelligence (AI). Federal preemption is a sensible and well-established legal tool that Congress has used across sectors to ensure a single, predictable standard for critical economic activity while a durable national framework is developed.
A limited period of federal preemption is particularly important today because the United States is facing growing regulatory fragmentation that threatens both our national security and our economic competitiveness. States have introduced hundreds of AI-related bills in an effort to respond quickly to a rapidly evolving technology. In the absence of federal coordination, a small number of states risk effectively setting de facto national standards, despite the fact that AI systems operate across state borders and throughout interstate commerce. This dynamic undermines democratic accountability and places the United States at a disadvantage relative to global competitors.
We wish to acknowledge President Trump and the current administration for their foresight in recognizing the critical importance of AI in securing America’s global competitive edge. The President’s steadfast commitment to ensuring the U.S. remains a leader in emerging technologies has played a pivotal role in shaping the national dialogue on regulation.
Beyond national security concerns, regulatory fragmentation has direct consequences for affordability and competition. A patchwork of state-by-state rules raises compliance costs, which are ultimately passed on to consumers in the form of higher prices and fewer choices. Uniform federal standards help lower these costs by providing clarity and predictability, enabling companies to invest more in innovation, efficiency, and responsible deployment rather than duplicative legal compliance.
This issue is especially acute for startups and small businesses. State-level AI regulations are often broad, vague, and inconsistent across jurisdictions. While large firms may be able to absorb these costs, smaller companies and new market entrants cannot. The result is higher barriers to entry, reduced competition, and fewer innovative challengers, precisely the opposite of what policymakers should want in a rapidly evolving and strategically important sector. Temporary federal preemption would help protect the ability of startups to compete, attract investment, and bring affordable, innovative products to market.
Importantly, this approach is not about leaving AI unregulated. Rather, it is about creating space for Congress to develop a thoughtful, balanced national framework while existing laws and federal agencies continue to apply. A time-limited preemption ensures that federal leadership is established without foreclosing future policymaking or locking in a permanent regulatory outcome before the technology and its uses are fully understood. This coalition welcomes and encourages congressional action that will ensure the U.S. remains on the vanguard of AI development.
Supporting a temporary federal preemption framework presents a meaningful opportunity to strengthen
U.S. innovation, protect consumers, promote competition, and safeguard national security. We urge Congress to provide regulatory clarity and consistency while working toward a comprehensive, durable national approach to AI governance that reflects the interests of all Americans.
Sincerely,
Brent Gardner
Chief Government Affairs Officer
Americans for Prosperity
Neil Chilson
Head of AI Policy
Abundance Institute
Neil Siefring
Senior Fellow
Alliance for the Future
Saulius “Saul” Anuzis
President
American Association of Senior Citizens
Logan Kolas
Director of Technology Policy
American Consumer Institute
Grover Norquist
President
Americans for Tax Reform
Nathan Leamer
Executive Director
Build American AI
Ryan Ellis
President
Center for a Free Economy
Anthony J. Zagotta
President
Center for American Principles
Chuck Muth
President
Citizen Outreach
Ashley Baker
Executive Director
Committee for Justice
Jessica Melugin
Director, Center for Technology and Innovation
Competitive Enterprise Institute
Brian McMillan
Vice President, Federal Affairs
Computer & Communications Industry Association
John Vick
Executive Director
Concerned Veterans for America
James Czerniawski
Head of Emerging Technology Policy
Consumer Choice Center
Gary Shapiro
Executive Chair & CEO
Consumer Technology Association
Tom Schatz
President
Council for Citizens Against Government Waste
James Erwin
Executive Director Digital Liberty
George Landrith
President
Frontiers of Freedom
Vance Ginn, Ph.D.
President
Ginn Economic Consulting
Patrice Onwuka
Director of the Center for Economic Opportunity
Independent Women
Howard Fienberg
Senior VP
Advocacy Insights Association
Charles Sauer
President
Market Institute
Dr. Steven J. Allen
Senior Fellow
National Legal and Policy Center
Amy Bos
Vice President of Government Affairs
NetChoice
Jon Decker
Senior Fellow
Parkview Institute
Adam Thierer
Resident Senior Fellow, Technology and Innovation
R Street Institute
Stacie Rumenap
CEO & Founder
Stop Child Predators
David Williams
President
Taxpayers Protection Alliance
Sandra Benitez
Executive Director
The LIBRE Initiative
Casey Given
Executive Director
Young Voices
James L. Martin
Founder & Chairman
60 Plus Association
Caleb O. Brown
CEO
Bluegrass Institute
Annette Thompson Meeks
CEO
Freedom Foundation of Minnesota
Brian Norman
Director of State Affairs
Goldwater Institute
Donald Bryson
CEO
John Locke Foundation
Cami M. Pendell
Vice President for Government Affairs
Mackinac Center for Public Policy
Chris Cargill
President & CEO
Mountain States Policy Center
Stephen Stephanie
President
New Hampshire Pine Tree Public Policy
Daniel J. Erspamer
CEO
Pelican Institute for Public Policy
Mike Stenhouse
CEO
Rhode Island Center for Freedom & Prosperity
Paul Gessing
President
Rio Grande Foundation
Dr. J. Robert McClure
President & CEO
The James Madison Institute