Louisiana scraps some, but not all, AI proposals after Trump threats

This story was originally published by Louisiana Illuminator.

At least a third of the nearly 20 bills Louisiana lawmakers proposed to put guardrails on artificial intelligence have been scrapped following threats from President Donald Trump to pull federal funding from states that regulate the industry. 

But not all legislators plan to shelve their bills related to the fast-growing and controversial technology and there’s confusion over what AI measures might cross a line with Trump. 

“I don’t know what we’re doing with them,” Senate President Cameron Henry, R-Metairie, said in an interview about AI bills Monday. “We’re trying to figure out what we’re doing.” 

Trump issued an executive order in December calling for a single, nationwide policy structure for artificial intelligence in an attempt to override state AI laws. In the document, he stated the administration would withhold federal money for expanding broadband internet access from states that pass and enforce laws conflicting with his AI policy priorities. 

Henry said he has been in two phone conversations with the White House about AI legislation. Apart from Trump’s concern, the Senate president said he has heard other worries about regulating the industry, such as unintended consequences of approving technology that some industries, including health care, are already using.

“There is a concern that it is in violation of the president’s executive order dealing with AI and it could jeopardize some funding with the state of Louisiana,” Sen. Jay Luneau, D-Alexandria, said about his decision to shelve a bill regulating AI use in health insurance coverage decisions. 

Yet a bipartisan group of five lawmakers said in interviews Monday they were still pursuing at least six bills related to AI, even if some were pessimistic about their ability to pass such legislation.

“Eventually, there is going to be AI regulation enacted into statute. The question is when.  … We need to have these conversations,” said state Rep. Michael Bayham, R-Chalmette, who added that he would seek approval for at least two of his AI bills if allowed to do so.

Bills that have been scrapped in the Louisiana Legislature include those that would: 

• limit the use of AI in decisions about health insurance coverage;
• prohibit AI recreating someone’s identity and artistic material without permission;
• require the disclosure of AI used during employment decisions; 
• limit the use of AI in medical treatment; and
• limit the ability of chatbots to interact with children. 

Bills lawmakers said may still move forward include those that: 

• require a medical professional to get patient consent before recording a conversation to be transcribed by artificial intelligence; 
• require disclosure when AI is used during a phone call or automated call; 
• place restrictions on “mental health chatbots;”
• prohibit the use of AI-generated content in paid political advertisements; and
• prohibit businesses from using data collected through surveillance to set different prices for different people for the same product 

A few legislators who have pulled their bills already said Gov. Jeff Landry’s office asked them to do so. 

Landry’s communications director, Kate Kelly, declined on Monday to say whether the governor has asked legislators to pull their AI bills over Trump’s threats to cancel broadband funding. 

The Pelican Institute, a conservative think tank that works closely with Landry, has been outspoken about its opposition to AI regulation, however, and publicly encouraged legislators to back off proposals.

“We believe [AI regulation] would just lead to slowing down important progress in this area, which ultimately affects our nation’s ability to win the race on AI, particularly as we look to compete with other countries like China,” said Erin Bendily, Pelican Institute senior vice president, in an interview Monday. 

Trump has received large financial contributions from the company leaders developing AI. He initially tried to get a 10-year prohibition on state AI regulations included in the Big Beautiful Bill that Congress approved in July, but the U.S. Senate refused to go along with the president’s request. 

Instead, Trump issued his executive order that, in addition to the broadband funding threat, directed the U.S. Department of Justice to take steps toward challenging state AI regulation his administration deemed burdensome.

It’s unclear why Trump’s funding and legals threat didn’t prevent Louisiana legislators from drafting AI legislation in the first place. State lawmakers didn’t even start filing bills for consideration until February, and the state’s legislative session didn’t get underway until March, three months after Trump’s executive order was issued.

“[Legislators] started to hear the grumblings after the bills were filed,” said Rep. Vincent Cox, R-Gretna, who added that Landry’s office asked him to shelve two AI bills, in an interview. “As much as I like the bill, rural Louisiana needs that broadband money. I’m not going to jeopardize that.” 

On March 20, less than two weeks after the Louisiana Legislature’s session got underway, the Trump administration issued a policy paper attempting to clarify which state AI regulations he would consider objectionable. 

The paper emphasizes that Trump believes the vast majority of AI regulation should be handled by Congress and the president, but it appears to leave at least one narrow area of policy to the states.

The Trump administration says states should not be stopped from passing laws to protect children and prevent child abuse. This could explain why the AI legislation that has made it the farthest in Louisiana is directly related to AI-generated child pornography. 

A little over three weeks into the legislative session, only three AI bills have gotten votes on the House or Senate floor. They all have to do with preventing sexual content featuring children.

House Bill 119, sponsored by Rep. Bryan Fontenot, R-Thibodaux, which prohibits the distribution of AI-generated images of nude or nearly-nude children and teenagers, passed the House unanimously Monday.

Senate Bill 110, by Sen. Heather Cloud, R-Turkey Creek, and Senate Bill 42, by Sen. Rick Edmonds, R-Baton Rouge, ban the use of minors’ images to train AI for creating sexual content. Both received unanimous Senate approval this month. 

“We’re passing child safety bills,” Henry, the Senate president, said. 

Peter Robins-Brown, executive director of Louisiana Progress, a left-leaning citizens advocacy group, said it is frustrating Louisiana isn’t willing to approve more AI regulation this year.

“There’s clearly bipartisan interest in addressing constituents’ concerns regarding AI,” said Robins-Brown, who was supporting five AI bills. “This is being driven by constituents. This isn’t special interests driving this conversation.”

Louisiana isn’t the only state retreating from AI regulation in response to Trump’s threats.

Florida lawmakers weakened a data-center regulation bill after the Trump administration pushed back on the proposal earlier this month. Utah legislators backed off AI regulation in fear of angering Trump as well.

Louisiana Illuminator is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Louisiana Illuminator maintains editorial independence. Contact Editor Greg LaRose for questions: info@lailluminator.com.