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States Advance New Rules and Challenge Federal Preemption Efforts
California is forging ahead with its own AI regulation framework, enacting two new AI safety laws in January 2026 and issuing an executive order on March 30, 2026, to apply state standards to government contracts. This proactive stance contrasts with federal policies, which California criticized in March 2026 as "red tape and onerous regulation". Concurrently, U.S. Senator Marsha Blackburn introduced the Trump America AI Act discussion draft on March 18, 2026, aiming to codify President Trump's December 11, 2025 Executive Order for a uniform federal AI policy and preempt state AI laws deemed burdensome.
New regulatory fronts are emerging, with a bipartisan Colorado bill (House Bill 26-1263) advancing out of committee on April 12, 2026, to regulate AI companion chatbots. The bill would require chatbots to disclose they are not human, implement protocols for self-harm conversations, and impose stricter safeguards for minors. Separately, a nationwide boom in AI data centers is stirring resistance, leading Vermont Senator Bernie Sanders and New York Democratic Rep. Alexandria Ocasio-Cortez to introduce the Artificial Intelligence (AI) Data Center Moratorium Act last month, calling for a halt until tougher AI regulations are enacted.
The Bottom Line
The landscape of AI regulation is increasingly defined by a growing tension between states pursuing tailored frameworks and federal efforts to establish uniform, less burdensome standards, while new concerns like AI chatbot safety and the environmental impact of data centers are driving distinct legislative actions.
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