The Great American AI Act, released Thursday as a 269-page discussion draft, would freeze all state AI development laws for three years while a single federal standard takes their place.
Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA) authored the bipartisan bill. The three-year preemption targets laws “specifically regulating the development” of AI models: states can still regulate deployed AI and pass general-applicability laws, but they can’t touch development-phase rules until the sunset expires.
The compliance burden hits hardest at the top. Frontier AI developers with more than $500 million in gross revenue must publish public safety frameworks and submit to semi-annual third-party audits. The bill also codifies the Center for AI Standards and Innovation inside the Commerce Department at $100 million per year for fiscal years 2027–2029.
That three-year sunset is the real story here. A preemption that expires is a deadline for Congress, not a solution.
If permanent law doesn’t pass before the clock runs out, state frameworks snap back: California, Colorado, Texas — the ones your legal team has been watching. FedScoop’s breakdown of the CAISI codification signals the federal infrastructure is being built to last, but the opposition arrived fast. Brad Carson of Americans for Responsible Innovation called the preemption provision a “generational mistake” the day it dropped.
The draft is open for public feedback before formal introduction. Get your comments in now.
— Nathan Zakhary