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NCSL Updates
NCSL’s Recent Letters to the Hill on Reconciliation Provisions
NCSL Urges Congress to Oppose AI Moratorium on States
NCSL’s letter to the House Energy and Commerce Committee opposes language in the reconciliation bill that would impose a 10-year moratorium on state artificial intelligence legislation. It further argues that the provision is an infringement on states’ authority to effectively legislate in the AI arena, stifling innovation and leaving communities vulnerable in the face of rapidly advancing technologies. NCSL’s position is that the moratorium would impede states’ ability to protect citizens, especially in the areas of privacy, cybersecurity, fraud, workforce, education and public safety. Read the full letter.
The specific language approved by the Budget Committee imposes a 10-year moratorium on enforcement of state AI laws with a few exceptions. States can enforce laws that provide for criminal penalties, which captures state Child Sexual Abuse Material or CSAM laws. Other exemptions from the moratorium provide that states can enforce laws that facilitate faster AI deployment and easier permitting requirements, which may impact state laws addressing consumer protection and algorithm bias.
NCSL Urges Congress to Oppose State Income Tax Intervention in Reconciliation
The House Judiciary Committee passed its budget reconciliation recommendations, which included expansion of state income exemption language under P.L. 86-272, the Interstate Income Act of 1959. The reconciliation recommendations include the Interstate Commerce Simplicity Act of 2025, which adds language to the exemption under the definition of “solicitation of goods” that would result in restricting a state’s right and capability to collect business income tax. Read the full letter.
NCSL Raises Concerns About SNAP Cost Shifts to States
NCSL expressed its concerns to the House Agriculture Committee about the SNAP cost-sharing provisions in the reconciliation bill. States would be required to pay a minimum of 5% of benefits and an additional 25% of administrative costs—shifting billions of dollars in SNAP costs to states. Read the full letter. A state-by-state analysis of the SNAP cost share provisions included in the reconciliation bill may be found here.