NATIONAL CONFERENCE OF STATE LEGISLATURES
NCSL Capitol to Capitol
State-federal legislation news and updates from NCSL.
June 9, 2026
Happening this week: Bipartisan AI legislation would prevent states from enacting AI laws for three years. The Office of Management and Budget proposes a new rule that would give administration officials greater influence over federal research grants.
WASHINGTON WATCH: WHAT STATES NEED TO KNOW
House Lawmakers Unveil AI Proposal That Would Preempt State Laws
U.S. Reps. Lori Trahan (D-Mass.) and Jay Obernolte (R-Calif.) have released a working draft of legislation that would preempt certain state laws governing AI systems for three years. While the draft bill, titled the Great American Artificial Intelligence Act, signals continued congressional interest in establishing nationwide standards, it also raises significant questions about the balance of federal and state authority in overseeing emerging technologies.
The National Conference of State Legislatures is closely reviewing the proposal and will release a statement in the coming days. NCSL remains deeply concerned with any federal legislation that would preempt states’ ability to protect their residents and respond to rapidly evolving challenges associated with artificial intelligence.
► Great American Artificial Intelligence Act of 2026 (U.S. House)
STATE-FED AT YOUR FINGERTIPS
OMB Proposes Overhaul to Guidance Affecting State Grant Recipients | The U.S. Office of Management and Budget published a proposed rule that would give administration officials greater influence over federal research grants. The rule, published May 29 in the Federal Register, would broadly affect research fields including health, housing, transportation and the environment. States, which often serve as pass-through entities administering federal funds to subrecipients, would be subject to additional reporting requirements under the proposal. The OMB would be allowed to restrict funding and narrow flexibility for awards, especially discretionary practices. The proposed rule would apply government-wide and affect every federal grant program in which states participate. Comments on the proposed rule are due July 13, 2026.
► Regulation for Federal Assistance (Federal Register)
New White House AI Order Aims at Collaborative Approach | The order establishes a voluntary process allowing AI developers to share advanced “frontier” models with the federal government up to 30 days before release for cybersecurity review, and creates a government-led “benchmarking” process to evaluate the capabilities and risks of advanced AI systems. Both processes are intended to help determine which models may warrant closer scrutiny before being publicly released while stopping short of imposing mandatory regulation.
The order, issued on June 2, also directs federal agencies to expand cybersecurity support, including AI-driven tools, vulnerability detection and information-sharing, for critical infrastructure operators, many of which are regulated or operated at the state and local levels.
► Promoting Advanced Artificial Intelligence Innovation and Security (White House)
📅 Upcoming NCSL Events
Virtual Events
June 1-5 | Policy Review Week
June 26 | Expert Testimony: The Role of Trial Judges
In-Person Meetings
Jul 27-29 | NCSL Legislative Summit, Chicago
About Capitol to Capitol
Capitol to Capitol was established in 1994 to provide up-to-date information on important federal legislation. NCSL is committed to enhancing the role of states and state legislatures in the federal system.
