As outlined in last week’s federal update, Congress passed the One Big Beautiful Bill Act without the moratorium on state and local artificial intelligence (AI) laws originally included in the House version. Despite NAW’s support for the provision, it was ultimately stripped by a near-unanimous 99-1 Senate vote before the bill was returned to the House and subsequently signed into law by President Trump on July 4, 2025.

Without a federal AI moratorium, states continue to retain full authority to legislate and regulate on AI. This is especially significant for California, Colorado, New York, Connecticut, Texas and other states that are already advancing, enacting and implementing AI laws. In 2025, all 50 states, along with the District of Columbia, Puerto Rico and the Virgin Islands, introduced AI-related legislation. Over half of states have enacted an AI-related law. As state legislatures continue to consider legislation that would impact the use of AI for the wholesale distribution industry, NAW will monitor and report on the potential impact for our members. We will also continue to advocate for a federal moratorium and/or preemption of state and local AI regulations to ensure a patchwork of 50 unique standards does not prevent wholesaler-distributors from leveraging innovation and technology.