Democrats Launch GUARDRAILS Act to Restore State Authority Over AI

On March 27, 2026, Senator Brian Schatz of Hawaii, along with six other Democratic senators, introduced the GUARDRAILS Act, a piece of legislation designed to roll back President Trump's December 2025 executive order that blocked states from regulating artificial intelligence.

The bill represents a direct confrontation with the federal administration's attempt to centralize AI policy in Washington.

Background

In March 2026, the Trump administration published a National Policy Framework for Artificial Intelligence, recommending that Congress preempt state-level AI legislation deemed to impose undue burdens on AI companies. The administration's argument is that a patchwork of conflicting state laws will hamper American innovation and global competitiveness.

States, however, have not waited for federal direction. Washington Governor Bob Ferguson recently signed two AI-related bills covering AI use in schools, protections against deepfakes, and requirements for human involvement in medical decisions.

What the GUARDRAILS Act would do

The bill from Schatz and colleagues would:

• Repeal Trump's December 2025 executive order preventing states from regulating AI
• Ensure states retain the right to protect their residents through their own AI laws
• Reject the administration's claim that federal preemption is necessary for innovation

What this means for businesses

For companies operating across American states, and for international players with US market exposure, this is a reminder that the AI regulatory landscape in the United States is far from settled.

There is currently no national AI law in the US. The political battle between federal and state regulation may take months or years to resolve, and companies must plan for a scenario where they face vastly different requirements depending on which state they operate in.

Europe, with its EU AI Act already in force, is likely to serve as the simplest planning reference for global companies, even for those targeting American markets.