OpenAI Pushes 3-State AI Law Template as Congress Stalls on National Rules
Updated
Updated · POLITICO · May 20
OpenAI Pushes 3-State AI Law Template as Congress Stalls on National Rules
5 articles · Updated · POLITICO · May 20
Illinois is now OpenAI’s next target after the company helped shape AI laws in California and New York, part of Chris Lehane’s bid to build a de facto national framework through big blue states.
Lehane calls the strategy “reverse federalism”: with Congress deadlocked, OpenAI is backing state rules centered on transparency and reporting that it says address catastrophic AI risks without imposing heavy liability or massive penalties.
Critics say the company has repeatedly weakened tougher proposals, citing OpenAI’s role in softening California and New York measures, while industry-backed PACs have poured more than $11 million into state races in California and New York.
Illinois could test whether OpenAI’s approach is shifting, because the bill it endorsed adds mandatory third-party audits; if Gov. JB Pritzker signs it after the May 31 session, Lehane says three aligned states could become a model for others.
The broader push still depends on Republican-led states and the White House, with Lehane arguing a possible Trump AI executive order could spur red states to act and eventually pressure Congress into federal standards.
As tech firms lobby states and D.C., who will ultimately write the rules for artificial intelligence—industry or government?
The No Surprises Act fixed one problem but created another. Can lawmakers now fix the fix without making things worse?
A lifetime lobbying ban for ex-lawmakers is proposed to restore trust. Could it just push political influence further into the shadows?
AI Lobbying Hits Record Highs in Q1 2026: OpenAI’s Liability Push, State Battles, and the Future of U.S. AI Regulation
Overview
In early 2026, AI companies dramatically increased their lobbying in Washington D.C., responding to fast-changing legal and regulatory challenges and rising bipartisan demands for accountability. Their main goal was to avoid a patchwork of state laws by shaping a unified national framework that favors their interests, especially around liability. As public disapproval of AI technologies grew and legal scrutiny intensified, these companies boosted spending and influence efforts among lawmakers. This surge in lobbying reflects a strategic push to secure favorable regulations and manage risks, highlighting the tension between industry interests, public concerns, and the evolving policy landscape.