One Big Beautiful Bill Act 2025, Section 43201 ("Artificial intelligence and information technology modernization initiative")

Summary

Appropriates $500 million to the Department of Commerce for FY 2025 to modernize federal IT systems using AI and automation technologies.

Authorizes the Secretary of Commerce to use funds to replace legacy systems, adopt efficient AI models, and enhance cybersecurity with AI solutions.

Enacts a 10-year moratorium preventing state and local governments from regulating AI models or systems.

Exempts laws facilitating AI deployment or removing legal barriers, provided they do not impose additional requirements unless federally mandated or generally applicable.

Appropriates $500,000,000 to the Department of Commerce to modernize and secure Federal IT with AI, automating and enhancing systems.

(a) Appropriation of Funds.--There is hereby appropriated to the Department of Commerce for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2034, to modernize and secure Federal information technology systems through the deployment of commercial artificial intelligence, the deployment of automation technologies, and the replacement of antiquated business systems in accordance with subsection (b). (b) Authorized Uses.--The Secretary of Commerce shall use the funds appropriated under subsection (a) for the following: (1) To replace or modernize, within the Department of Commerce, legacy business systems with state-of-the-art commercial artificial intelligence systems and automated decision systems. (2) To facilitate, within the Department of Commerce, the adoption of artificial intelligence models that increase operational efficiency and service delivery. (3) To improve, within the Department of Commerce, the cybersecurity posture of Federal information technology systems through modernized architecture, automated threat detection, and integrated artificial intelligence solutions.

Prohibits states from regulating AI in interstate commerce for 10 years, with specific exceptions.

(c) Moratorium.-- (1) In general.--Except as provided in paragraph (2), no State or political subdivision thereof may enforce, during the 10-year period beginning on the date of the enactment of this Act, any law or regulation of that State or a political subdivision thereof limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce. (2) Rule of construction.--Paragraph (1) may not be construed to prohibit the enforcement of-- (A) any law or regulation that-- (i) the primary purpose and effect of which is to-- (I) remove legal impediments to, or facilitate the deployment or operation of, an artificial intelligence model, artificial intelligence system, or automated decision system; or (II) streamline licensing, permitting, routing, zoning, procurement, or reporting procedures in a manner that facilitates the adoption of artificial intelligence models, artificial intelligence systems, or automated decision systems; (ii) does not impose any substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirement on artificial intelligence models, artificial intelligence systems, or automated decision systems unless such requirement-- (I) is imposed under Federal law; or (II) in the case of a requirement imposed under a generally applicable law, is imposed in the same manner on models and systems, other than artificial intelligence models, artificial intelligence systems, and automated decision systems, that provide comparable functions to artificial intelligence models, artificial intelligence systems, or automated decision systems; and (iii) does not impose a fee or bond unless-- (I) such fee or bond is reasonable and cost-based; and (II) under such fee or bond, artificial intelligence models, artificial intelligence systems, and automated decision systems are treated in the same manner as other models and systems that perform comparable functions; or (B) any provision of a law or regulation to the extent that the violation of such provision carries a criminal penalty.

Defines artificial intelligence, model, system, and automated decision system as specified in referenced Act.

(d) Definitions.--In this section: (1) Artificial intelligence.--The term ``artificial intelligence'' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401). (2) Artificial intelligence model.--The term ``artificial intelligence model'' means a software component of an information system that implements artificial intelligence technology and uses computational, statistical, or machine- learning techniques to produce outputs from a defined set of inputs. (3) Artificial intelligence system.--The term ``artificial intelligence system'' means any data system, hardware, tool, or utility that operates, in whole or in part, using artificial intelligence. (4) Automated decision system.--The term ``automated decision system'' means any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues a simplified output, including a score, classification, or recommendation, to materially influence or replace human decision making.