AI Provisions in the One Big Beautiful Bill Act

On May 22, 2025, the U.S. House of Representatives advanced its version of a 2025 Fiscal Year budget reconciliation bill, H.R. 1, the One Big Beautiful Bill Act (OBBBA). The bill, which proceeds to the Senate for consideration, includes the following AI-specific provisions:

• 10-year moratorium on State and local laws and regulations regulating AI models, AI systems, or automated decision systems, except for any law or regulation that:
  • removes legal impediments to, or facilitates the deployment, operations, or adoption of, such models and systems;
  • does not impose any requirements on such models and systems, unless the requirement is imposed under Federal law or under a generally applicable law that is imposed in the same manner on non-AI models and systems that provide comparable functions; and
  • does not impose a fee or bond unless it is reasonable and cost-based and, under such fee or bond, such models and systems are treated in the same manner as non-AI models and systems that perform comparable functions.
• Department of Commerce: $500M to modernize and secure Federal information technology systems through the deployment of commercial AI, the deployment of automation technologies, and the replacement of antiquated business systems.
• Department of Defense (DOD):
  • $124M for improvements to Test Resource Management Center AI capabilities;
  • $250M for the expansion of Cyber Command AI lines of effort; and
  • $200M for the deployment of automation and AI to accelerate audits of the financial statements of the DOD.
• U.S. Customs and Border Protection: $1B for necessary expenses relating to procurement of new non-intrusive inspection equipment and associated civil works, AI, integration, and machine learning, as well as other mission support, to combat entry of illicit narcotics.
• Department of Health and Human Services: $24M redirected to implement AI tools for purposes of reducing and recouping improper payments made under Medicare Parts A and B.

• Artificial Intelligence & Machine Learning
• Technology