The “Big Beautiful” Bill’s Effects on AI

By Christian Bongiorno

The Trump Administration’s “Big Beautiful” bill was recently passed in efforts to stimulate economic growth and provide tax breaks to families. However, this legislation comes with heavy criticism because the bill slashed nearly $1 trillion from Medicaid and SNAP, hurting people with lower incomes (Segers 2025). This legislation also has an aspect that people don’t know about: Artificial Intelligence (AI).

You may be wondering: What does AI have to do with President Donald Trump’s legislation? House Republicans implemented a clause that prohibits state and local governments from regulating AI for a decade (Brown and O’Brien 2025). This clause puts a dent into technological innovation because corporate boardrooms would be in the driver’s seat to monitor AI systems (Shadid 2025). In other words, AI companies would be let off the hook, meaning that they could ignore consumer privacy protections and spread deepfakes. Companies can suffer huge consequences when spreading deepfakes as such an action result in damaged reputations, enables fraud and misinformation (Forbes Expert Panel 2025).

America’s AI industry will also take a hit on the global stage because of the bill. The European Union is shifting towards ethical, human-centered AI foundations while Qatar boosted their AI initiative by aiming towards improving leadership in decentralized AI (Shadid 2025).