Washington, D.C. – TechNet, the national, bipartisan network of innovation economy CEOs and senior executives, today set the record straight on several myths circulating about the pause on state AI development laws currently being considered by Congress as part of the reconciliation package.
“AI is actively reshaping how we teach, build, learn, and live. A unified federal AI framework would not only provide clarity and consistency but also affirm America’s global leadership in shaping the rules of the road for this defining technology,” said TechNet President and CEO, Linda Moore. “The proposed pause on state-level AI model development laws gives lawmakers time to craft a national framework that balances innovation with accountability and ensures America leads the world in setting responsible AI standards.”
Fiction #1: “A national AI law would stop states from addressing harms or protecting kids online.”
Fact #1: Both states and the federal government will still be able to protect kids and consumers online. Nothing in the AI pause would prevent states from enforcing or enacting applicable consumer protection laws – like child safety, data privacy, anti-discrimination, and anti-deceptive practices protections. [source: Budget Reconciliation bill text, June 2025]
Fiction #2: “A temporary pause on state AI development regulation just supports the so-called big tech companies.”
Fact: Small companies, not large ones, benefit most from the pause. A confusing 50-state patchwork is much harder on smaller companies, while larger companies can better afford to comply. A clear national policy levels the playing field for small and midsize startups. Compliance costs are a huge burden on small businesses and start-ups. [source: cs.CY/Cornell University, January 2023]
Fiction #3: “Americans prefer a conflicting patchwork of state AI development laws.”
Fact: The American people want this pause on state AI development laws. A large bipartisan majority of Americans prefer a single national AI standard to a patchwork of state laws. Recent polling by TechNet and Morning Consult poll shows 76% of voters support a single national AI development standard. [source: TechNet/Morning Consult poll, June 5, 2025]
Read more analysis from TechNet’s President and CEO, Linda Moore, here.