AI Governance in the States: June 2025

Written by: Matthew Gross

Current Status Overview

As of June 2025, more than half of U.S. states have enacted at least one AI or algorithmic accountability law. In total, 48 states and Puerto Rico have introduced AI-related bills this year, with 26 enacting new measures.[1] Common priorities include transparency, child protection, and reducing algorithmic bias.

Meanwhile, a federal proposal introduced in the House of Representatives has sparked controversy. The bill, advanced as a budget rider, would impose a 10-year moratorium preventing states from enforcing most new AI regulations through 2035.[2] The measure has drawn bipartisan opposition from state lawmakers, attorneys general, and digital rights groups, who argue it would undercut states’ ability to respond to rapidly evolving AI risks. The preemption effort appears to be strengthening state resolve to act independently, particularly in the absence of comprehensive federal legislation.

Newly Signed Laws

Nebraska passed LB 504 and LB 383, requiring platforms to reduce addictive features for minors, ban push notifications during school hours, verify parental consent for accounts, and criminalize AI-generated child sexual abuse imagery.[3] LB 504 is set to take effect on January 1, 2026, with enforcement provisions, including fines up to $50,000 per violation, beginning on July 1, 2026.[4] LB 383 is scheduled to become effective on July 1, 2026.[5]

Arkansas adopted HB1876 and HB1071 on February 25, 2025, requiring public agencies to develop AI use policies and granting partial ownership of AI-generated content to those whose data or input trained the system, addressing IP concerns around generative AI. Both laws are effective 90 days after the legislature’s adjournment, which is standard unless specified otherwise; this would mean they became effective on April 21, 2025.[6]

Utah refined its AI Policy Act with SB 226 and SB 332, extending disclosure rules through 2027 but limiting them to high-risk use cases. It also enacted HB 452, requiring AI mental health chatbots to clearly identify themselves as non-human and comply with state oversight.[7] All three bills became effective on May 7, 2025, and SB 332 extended the repeal date of the Artificial Intelligence Policy Act from May 2025 to July 1, 2027.[8]

Montana‘s “Right to Compute Act” combines infrastructure oversight and individual AI rights, requiring risk management plans for AI used in critical infrastructure and prohibiting government interference with private AI use without compelling justification.[9] According to Montana law, unless specified otherwise, statutes become effective on October 1 following their passage. As no specific effective date was provided, SB 212 is expected to take effect on October 1, 2025.[10]

Key Updates on Pending Legislation

Texas’s HB 149 (TRAIGA) establishes rules for AI use in state government, including transparency, a ban on social scoring, and the creation of an AI advisory council. It was sent to Governor Abbott on June 2.[11]

New York is advancing AB 6578, which mandates disclosure of AI training data, and SB 5668, which regulates AI chatbots that interact with minors and creates liability for harmful outputs.[12]

California has several AI bills moving, including AB 412 (AI copyright protections), SB 11 (deepfake penalties), SB 243 (chatbot disclosure to minors), and SB 833 (mandating human oversight of AI in critical infrastructure).[13]

Connecticut‘s SB 2 creates a regulatory sandbox and introduces strict transparency, bias assessment, and fairness obligations for high-risk AI systems. It passed the Senate and awaits House consideration.[14]

Bills in Committee

Many additional bills remain under committee review. Massachusetts,[15] New Jersey,[16] Illinois,[17] and Maryland[18] each have multiple proposals in progress, including workplace AI disclosures, whistleblower protections, algorithmic fairness standards, and advisory task forces. Some bills are expected to carry over into the 2026 legislative sessions.

Legislative Trends & Observations

While sweeping legislation remains rare, many states are moving quickly on narrow, use-case-driven laws. Common themes include disclosure, accountability, youth safety, and emerging rights frameworks. Deepfake regulations continue to gain traction, particularly in response to election integrity concerns and nonconsensual image manipulation. Similarly, several states have now adopted or are advancing age-appropriate design codes that impose algorithmic design restrictions on platforms used by minors.

Transparency mandates are appearing across sectors, from requirements to disclose AI usage in public services to calls for visibility into training datasets for high-risk systems. There is also increasing interest in the regulation of AI-generated content, with lawmakers wrestling with copyright implications and the need for clear disclosures when generative tools are used.

States like Colorado, Utah, California, and potentially Texas and Connecticut are shaping more comprehensive models that combine procedural obligations, oversight structures, and defined enforcement mechanisms. These broader approaches aim to embed AI accountability principles, such as impact assessments and a duty of care, into systems development and deployment.

Importantly, state legislative activity is becoming more bipartisan. Red and blue states are both enacting AI laws, though with slightly different emphases. Republican-led states often focus on digital rights, AI abuse prevention, and limiting centralized control, while Democratic-led states tend to prioritize anti-discrimination measures, transparency, and labor protections. This cross-aisle momentum suggests that AI regulation may be one of the few areas where meaningful governance can continue at the state level even in a polarized climate.

With federal momentum stalled and proposed preemption facing resistance, states continue to set the practical pace of U.S. AI governance. The coming months will likely bring more laws, and the evolving patchwork of state rules could set de facto standards for the industry nationwide.

 

[1] Artificial Intelligence 2025 Legislation, Nat’l Conf. of State Legislatures, https://www.ncsl.org/technology-and-communication/artificial-intelligence-2025-legislation (last visited June 2, 2025).
[2] Miranda Nazzaro, GOP push to ban state AI laws ignites debate: What to know, The Hill (May 28, 2025) https://thehill.com/policy/technology/5314757-house-republicans-propose-ai-regulation-ban/
[3] Gov. Pillen Signs Package of Bills Focused on Kids, Big Tech, 10/11 Now (May 30, 2025), https://www.1011now.com/2025/05/30/live-830-am-gov-pillen-sign-package-bills-focused-kids-big-tech/.
[4] Emma Roth, Nebraska Signs Law to Limit Addictive Features on Social Media for Kids, The Verge (May 30, 2025), https://www.theverge.com/news/677434/nebraska-age-appropriate-online-design-code-act-signed.
[5] Nebraska Passes Two Bills to Protect Kids from AI and Social Media, Transparency Coalition (May 30, 2025), https://www.transparencycoalition.ai/news/nebraska-passes-two-bills-to-protect-kids-from-ai-and-social-media.
[6] Alison Pepper, Arkansas Legislation Addresses AI-Generated Content Ownership and Publicity Rights, 4A’s (Apr. 23, 2025), https://www.aaaa.org/blog/arkansas-legislation-addresses-ai-generated-content-ownership-and-publicity-rights/.; How Does a Bill Become a Law, Ark. House of Representatives, https://www.arkansashouse.org/learn/faqs/6/how-does-a-bill-become-a-law (last visited June 3, 2025).
[7] Justine Gluck, Chatbots in Check: Utah’s Latest AI Legislation, Future of Privacy Forum (Apr. 2, 2025), https://fpf.org/blog/chatbots-in-check-utahs-latest-ai-legislation/.
[8] Future of Privacy Forum, Overview of Utah’s 2025 Enacted AI Legislation (Apr. 2025), https://fpf.org/wp-content/uploads/2025/04/Overview-of-Utahs-2025-Enacted-AI-Legislation.pdf.
[9] S.B. 212, 69th Leg., Reg. Sess. (Mont. 2025), https://fastdemocracy.com/bill-search/mt/2025/bills/MTB00014505/.
[10] Mont. Code Ann. § 1-2-201 (2023), https://archive.legmt.gov/bills/mca/title_0010/chapter_0020/part_0020/section_0010/0010-0020-0020-0010.html.
[11] Tex. H.B. 149, 89th Leg., Reg. Sess. (2025), https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB149.
[12] A.B. 6578, 2025–2026 Leg., Reg. Sess. (N.Y. 2025), https://www.nysenate.gov/legislation/bills/2025/A6578; S.B. 5668, 2025–2026 Leg., Reg. Sess. (N.Y. 2025), https://www.nysenate.gov/legislation/bills/2025/S5668.
[13] A.B. 412, 2025–2026 Leg., Reg. Sess. (Cal. 2025), https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260AB412. S.B. 11, 2025–2026;  Leg., Reg. Sess. (Cal. 2025), https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB11. S.B. 243, 2025–2026; Leg., Reg. Sess. (Cal. 2025), https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB243. S.B. 833, 2025–2026; Leg., Reg. Sess. (Cal. 2025), https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB833.
[14] S.B. 2, 2025 Gen. Assemb., Reg. Sess. (Conn. 2025), https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB2.
[15] H.D. 1222, 194th Gen. Ct., Reg. Sess. (Mass. 2025), https://malegislature.gov/Bills/194/HD1222.
[16] A.R. 158, 221st Leg., Reg. Sess. (N.J. 2024), https://www.njleg.state.nj.us/bill-search/2024/AR158.
[17] H.B. 3529, 104th Gen. Assemb., Reg. Sess. (Ill. 2025), https://www.ilga.gov/legislation/104/HB/10400HB3529.htm.
[18] S.B. 906, 2025 Reg. Sess. (Md. 2025), https://mgaleg.maryland.gov/2025RS/bills/sb/sb0906f.pdf.