Louisiana has navigated the artificial intelligence (AI) revolution with the determination and spirit characteristic of our state. Our hospitals, schools, and businesses have incorporated the technology into everyday practices, saving and changing lives along the way. On the state level, our pro-business environment has attracted the investment and jobs of major companies like Meta. A moratorium on state AI legislation within a budget reconciliation bill that has passed the House of Representatives and is moving through the Senate can help facilitate even more innovation and growth in Louisiana while reinforcing the sound policies and hard work that brought us to this point.
The AI moratorium prevents state and local governments from adopting and enforcing any regulation that is specific to AI systems. Under the present text, the moratorium would span 10 years and does not apply to laws with a criminal penalty or those that are about technology, but not specific to AI.
The moratorium is tailored to confront the growing patchwork of state laws on AI, while maintaining legal mechanisms already in place to address problems should they arise. A quick survey of the legislative scene makes it obvious why this moratorium is necessary. In 2025 alone, over 1,000 bills have been introduced to regulate the technology. Because AI is constantly developing and improving, these bills often conflict with each other or even themselves in their efforts to define and limit.
More than just adding to bureaucratic bloat, a patchy regulatory landscape hurts businesses. Compliance costs will crush some small businesses right out of the gate as they struggle to adhere to a regulatory landscape designed with larger companies in mind. The legal fees associated with a legislative climate that prefers regulation over innovation will also pose a significant burden. Over time, developers and businesses that use AI alike will become more risk averse. The incentives to use AI to progress as a company will seem less compelling when faced with a series of laws that change across state lines, conflict with each other over even the most basic definitions, and impose hefty costs by way of compliance checks and other penalties. The US Chamber of Commerce reported in a recent study that 40% of small businesses use AI, and the number is steadily climbing. Moreover, in Louisiana alone an estimated 35,000 small businesses, that communities and families rely on, use AI.
In the case of state AI regulation, the most rigorous regulations can often become the default baseline for other states. Jennifer Huddleston, senior fellow at the Cato Institute, aptly named this phenomenon the “Sacramento Effect.” Companies, tired from an uphill compliance battle, will opt to conform their product to the most strenuous standard and bring their California-ready product to other states, regardless of how pro-innovation they are. The stakes in the federal moratorium are both high and clear: let Sacramento and other heavy-handed regulators set the tone or take time to get a true standard for AI right.
The AI moratorium is a creative and measured solution to the patchwork problem. It acknowledges that standards for the use of AI must exist, but that rushing them into law is not a sustainable solution. During the pause on state legislation, policymakers and stakeholders can look at laws currently on the books and apply them to the technology accordingly. This time will be an opportunity to revive a reverence for the existing laws while also clearly identifying where they fall short.
Technology develops at a pace far faster than a single session or lawmaker can keep up with. The moratorium allows Congress to delve deep into the needs of the people and businesses who rely on AI, evaluate the international climate around AI, and formulate a long-lasting solution that balances both the promise and peril of the technology. Louisiana is ready to embrace the opportunities that the AI moratorium presents.
