Weekly Update: Week of June 30, 2025

National policy shifts and legal compromises. Around U.S. Independence Day, the fate of the federal AI preemption plan was sealed. By July 4, Congress passed a compromise budget bill without the earlier provision that would have barred state AI laws. Senators had abandoned the proposed state-level moratorium after failing to reach consensus. This outcome – removal of the 10-year ban – was hailed as a victory for consumer protection and state autonomy. Also this week, the White House signaled a sharp turn in AI policy: President Trump (sworn in earlier in 2025) prepared to unveil an “AI Action Plan” focused on loosening regulations to spur innovation. Leaked details suggested the plan would discourage “burdensome” AI rules and even review past regulatory actions that might “unduly hinder AI”. In short, early July highlighted a split approach: Congress heeded calls for maintaining safeguards (by letting states regulate), while the new administration emphasized deregulation and competitiveness. This foreshadowed a brewing debate in U.S. AI governance between prioritizing safety vs. speed.