Trump's Budget Proposal: Key Stances on AI, Environmental Policy, and Surveillance

The "One Big Beautiful Bill Act," narrowly passed by House Republicans early Thursday, would remove AI oversight authority from state legislatures. It would also scale back consumer protection measures and climate initiatives, while allocating funds for border surveillance among numerous other provisions.

This budget reconciliation bill must still be approved by the Senate, where some Republicans have expressed concerns about certain aspects of the text. However, with President Donald Trump advocating for its passage, securing changes could prove difficult.

Here are some key technology and science provisions included in the House version of the bill:

Moratorium on state AI laws

The budget package would prevent states from enforcing laws that regulate artificial intelligence models and "automated decision systems" for a decade. This would likely preempt hundreds of AI-related bills under consideration for 2025, as well as dozens already enacted into law. Furthermore, the broad "automated decision" language could restrict regulation of various computer systems not typically classified as AI.

Republican supporters argue the rule is essential for allowing U.S. companies to innovate and compete with rivals in China—a view promoted by OpenAI. According to the National Conference of State Legislatures (NCSL), over 60 AI-related state bills have been enacted so far, many of which could be affected by the proposed moratorium. These laws address issues ranging from algorithmic discrimination to regulating AI use by government agencies.

Critics fear the definition could also hinder regulations covering various systems that use automation or machine learning. This might include rules backed by state-level Republicans, who have passed numerous social media regulations in recent years.

“Until we pass something that is federally preemptive, we can’t call for a moratorium”

A few Republican senators have raised concerns about the moratorium. Sen. Marsha Blackburn (R-TN), who is considering a gubernatorial run, recently spoke at a congressional hearing about her state's AI law, which aims to protect musicians' rights to their vocal likeness. “We certainly know that in Tennessee we need those protections,” Blackburn stated, according to The Washington Post. “And until we pass something that is federally preemptive, we can’t call for a moratorium.”

Sen. Josh Hawley (R-MO), who publicly opposed Medicaid cuts in the House bill, also objected to the state law pause. “I would think that, just as a matter of federalism, we’d want states to be able to try out different regimes that they think will work for their state,” Hawley told Business Insider. “And I think in general, on AI, I do think we need some sensible oversight that will protect people’s liberties.”

The provision may also face challenges under the "Byrd rule," which prohibits "extraneous" additions in reconciliation bills.

Cuts to green energy tax credits

If the House package becomes law, Biden-era tax credits for electric vehicles would end within two years. Renewable energy credits would be phased out early and subject to restrictions that disqualify many projects. The eliminated incentives include a $7,500 credit for purchasing eligible EVs, a $4,000 credit for eligible used vehicles, and credits for home refueling infrastructure.

Last-minute updates before the vote further rolled back key climate programs from the 2022 Inflation Reduction Act, beyond the bill's original scope, though they also scaled back efforts to repeal credits for nuclear reactors.

Scaling back funding for consumer financial protection

The Consumer Financial Protection Bureau (CFPB), already significantly impacted by Elon Musk’s Department of Government Efficiency (DOGE), would face additional funding caps under the bill. House Republicans aim to limit the CFPB's funding from the Federal Reserve to 5 percent of the system’s total operating expenses, down from the current 12 percent. This reduction would limit the agency's ability to address consumer complaints about issues like imminent foreclosures and credit card fraud, and to regulate digital payment services.

Border tech funding

The bill allocates billions of dollars to secure U.S. borders, including $12 billion to reimburse states for border security efforts. In addition to $46 billion designated for building and modernizing the wall along the U.S.-Mexico border, the legislation provides $1 billion for technology to detect drugs and other contraband. Another $2.7 billion would fund surveillance systems described by House Homeland Security Republicans as including "ground detection sensors, integrated surveillance towers, tunnel detection capability, unmanned aircraft systems (UAS), and enhanced communications equipment."

Limiting gender-affirming care

Starting in 2027, health care plans purchased through the Affordable Care Act marketplace would be prohibited from covering gender-affirming care, including hormone therapy and surgery. Similarly, the bill would bar Medicaid from covering "gender transition procedures" for minors and adults, while requiring coverage for detransition care.