States push ahead with AI legislation as federal moratorium is left out of new law
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act into law—without a proposed federal moratorium on state and local AI regulations. Although NAW supported the moratorium, it was removed by a 99-1 Senate vote.
As a result, states remain fully empowered to legislate and regulate AI. This is particularly relevant in states like California, Colorado, New York, Connecticut, and Texas, where AI laws are actively progressing. In 2025 alone, all 50 states, plus D.C., Puerto Rico, and the Virgin Islands, introduced AI-related bills, with over half enacting at least one into law.
NAW continues to monitor these developments and advocate for a uniform national approach to avoid a complex patchwork of regulations that could hinder innovation in the wholesale distribution industry.
Read the full update by NAW Government Relations Department.
