Supporters of the measure say it’s meant to prevent a state-by-state patchwork of rules that could slow innovation, particularly in areas like defense, finance and health care. But for Utah, a state that’s taken a deliberate and balanced approach to AI regulation, the proposed moratorium raises real concerns.

Over the past two years, Utah legislators have passed several laws aimed at protecting residents without discouraging innovation. These laws include transparency requirements when companies use AI in customer interactions, restrictions on fake identities to prevent fraud and provisions related to AI’s role in law enforcement and mental health services. These are practical laws, crafted to respond to emerging technology in a way that aligns with local needs.

That work would likely be halted under the federal proposal. As written, the provision prohibits states from enforcing any laws that regulate AI models or systems. Unless it’s revised, it could override Utah’s current statutes for the duration of the moratorium.

Lawmakers in Utah have voiced strong opposition. Republican Rep. Doug Fiefia of Herriman, a key figure in developing Utah’s AI policies, has argued that the measure would undercut the state’s “regulatory sandbox” approach, which is a model that allows for controlled testing and refinement of new technologies. He and other state legislators signed a letter to Utah’s congressional delegation asking them to oppose the moratorium. Republican Sen. Heidi Balderree of Saratoga Springs called the provision federal overreach and said it risks putting the brakes on Utah’s efforts to manage AI responsibly.

At the heart of the issue is the question of who gets to decide how AI is used and regulated. Should that authority rest solely with the federal government, or should states retain some control, especially those that have already begun addressing potential problems?

Utah’s argument is less about rejecting federal standards and more about maintaining the ability to respond to local priorities. What’s right for one state may not be the best fit for another. Utah’s demographics, economy and approach to tech policy are different from California’s or New York’s. And that’s what our legislators should be doing: developing legislation that reflects the needs of the people of Utah.

It’s also not clear that a national standard is ready. While there’s been a lot of discussion in Washington about the risks and rewards of AI, comprehensive federal legislation has yet to emerge. In that vacuum, some states have stepped in to give residents some clarity and protection.

The federal provision, backed by companies like OpenAI and some venture capital firms, is rooted in a concern that inconsistent rules could hold U.S. companies back in the global AI race. But critics, including tech experts, consumer advocates and a mix of both Republican and Democratic lawmakers, say the moratorium goes too far by shutting down all state-level activity, regardless of content or intent.

There may be value in having federal guidelines for AI. But that doesn’t mean state laws should be swept aside in the meantime. A more workable approach could be a framework that sets a baseline for national standards while giving states room to go further if they choose. We see this in other areas, like with environmental regulation and education. There’s no reason AI can’t follow a similar path.

Utah’s laws didn’t appear overnight. They went through public hearings, committee reviews and rounds of revision. They reflect a local consensus that emerging technologies should be useful and safe, and that it’s possible to support innovation while protecting the people who use it.

If the moratorium is enacted, Utah’s laws could be sidelined for a decade. That’s a long time in tech terms. Whether Congress ultimately decides to keep this provision in the federal budget bill or not, it’s worth thinking about what’s gained and what might be lost when states are taken out of the equation.

Leslie Meredith has been writing about technology for more than a decade. As a mom of four, value, usefulness and online safety take priority. Have a question? Email Leslie at asklesliemeredith@gmail.com.