House passes NDAA that excludes AI state‑preemption and CBDC ban
The House passed a roughly $900–901 billion NDAA Wednesday after a narrow rules fight (rule 215–211; final passage 312–112), with the enacted House package notably excluding provisions that would preempt state AI laws and bar a U.S. central bank digital currency while advancing measures like an Artificial Intelligence Futures Steering Committee, outbound investment screening and bans on certain China‑linked biotech contracts. Conservative fury over the missing CBDC ban and other broken promises nearly toppled the bill, prompting Speaker Mike Johnson to secure last‑minute commitments to pursue a CBDC ban and other floor votes to win GOP support, and President Trump later issued an executive order aimed at preempting state AI rules.
📌 Key Facts
- The House passed the fiscal 2026 NDAA by 312–112 after a narrow, contentious process; the procedural rule was narrowly approved 215–211 following last‑minute negotiations and several GOP members flipping their votes (Anna Paulina Luna, Marjorie Taylor Greene, Tim Burchett, Lauren Boebert); Rep. Thomas Massie remained the lone GOP no on the rule.
- The enacted House NDAA (~$900B/$901B topline) does not include provisions preempting state AI laws and likewise excludes a prohibition on a U.S. central bank digital currency (CBDC).
- The package creates an "Artificial Intelligence Futures Steering Committee" charged with making long‑range AI policy recommendations.
- Conservative Republicans publicly rebuked Speaker Mike Johnson for failing to attach the Anti‑CBDC Surveillance State Act; several conservatives (including Reps. Chip Roy, Marjorie Taylor Greene, Michael Cloud, Greg Steube, Keith Self and others) threatened or signaled opposition or hesitancy over the bill because of the CBDC omission and other missing conservative priorities.
- To secure the rule and final passage, Speaker Johnson and leadership made last‑minute promises and concessions — including a pledge to pursue attaching a CBDC ban to the next appropriations vehicle, a promised vote to bar members of Congress from trading individual stocks, and a commitment to bring up Marjorie Taylor Greene’s Protect Children’s Innocence Act — and Johnson kept the rule vote open for over an hour to win flips.
- The NDAA includes a mix of defense and tech measures: an outbound investment screening regime, bans on DoD contracting with certain China‑linked biotech/genetic sequencing firms and specified components, authority for border troop use, prohibitions on DEI programs, a roughly 3.8% pay raise for troops, retention of a maritime‑strike footage oversight penalty, and academy athletics policy provisions.
- After Congress twice rejected AI preemption language (including in the NDAA), President Trump issued an executive order seeking to achieve federal preemption administratively — a move expected to prompt legal challenges from states and deepen intra‑GOP conflict over federal vs. state AI rules.
- House GOP leadership had acknowledged the risk the rule could fail and briefly considered bringing the NDAA up under suspension (requiring two‑thirds support); dozens of House Democrats were expected to support the bill, lessening reliance solely on GOP unity.
📊 Relevant Data
As of December 2025, at least four US states—California, Colorado, Illinois, and Texas—have enacted AI laws that require bias audits, risk assessments, and measures to prevent discrimination in AI systems used for employment decisions.
AI laws by state and locality | 50-state chart — Brightmine
In 2024, US private AI investment reached $109.1 billion, nearly 12 times China's $9.3 billion.
The 2025 AI Index Report — Stanford HAI
AI-related capital expenditures contributed 1.1% to US GDP growth in the first half of 2025.
Is AI already driving U.S. growth? — J.P. Morgan Asset Management
A 2025 study found that White people were more accurately depicted in AI-generated images than people of color in various racial contexts.
Racial bias in AI-generated images — AI & SOCIETY (Springer)
In 2025, lawmakers across all 50 US states introduced more than 1,080 AI-related bills.
AI Legislation Across the U.S.: A 2025 End of Session Recap — RILA
📊 Analysis & Commentary (1)
"The piece argues that while MAGA and a pro‑tech conservative bloc have converging interests—especially around federal preemption and anti‑censorship—any alliance will be opportunistic and unstable and risks regulatory capture and public harms if pursued without safeguards."
📰 Sources (8)
- After Congress twice rejected AI preemption language (including in the NDAA), Trump issued an EO to achieve preemption administratively.
- The EO sets up anticipated legal challenges from states and intra‑GOP conflict over federal preemption of state AI rules.
- Speaker Mike Johnson secured the NDAA rule by making last‑minute promises, including to 'go to war' to attach a CBDC ban to the next appropriations bill due in late January.
- Rep. Anna Paulina Luna says she and Johnson spoke directly with Secretary of State Marco Rubio, who vowed to shut down alleged NGO funding to the Taliban.
- Johnson promised a future vote to ban members of Congress from trading individual stocks, per Luna.
- Rep. Marjorie Taylor Greene flipped her vote after Majority Leader Steve Scalise promised a floor vote next week on her Protect Children’s Innocence Act.
- Rule vote dynamics: Luna, Greene, Tim Burchett and Lauren Boebert flipped to 'yes'; Thomas Massie remained the lone GOP 'no'; Johnson held the vote open for just over an hour.
- House passage vote 312–112; rule narrowly passed 215–211.
- Affirms exclusion of AI state‑preemption and CBDC ban in the enacted House package.
- Details outbound investment screening regime and bans on DoD contracting with Chinese biotech/genetic sequencing firms and certain China-linked components.
- Confirms the overall ~$900B topline and House vote timing while outlining additional included measures (border troop use authority, DEI prohibitions, 3.8% pay raise).
- Highlights retention of the maritime‑strike footage oversight penalty and inclusion of academy athletics policy.
- Conservatives are publicly rebuking Speaker Mike Johnson over the NDAA’s exclusion of the Anti‑CBDC Surveillance State Act that he had promised to attach in July.
- Rep. Chip Roy says he will oppose final passage (while giving limited grace on the rule); Reps. Marjorie Taylor Greene, Michael Cloud and Greg Steube also plan to vote against the bill; Rep. Keith Self demanded leadership 'fix' the bill immediately.
- House GOP leadership is uncertain the rule can pass and is considering bringing the NDAA under suspension (requiring two‑thirds support) if the rule fails; dozens of House Democrats are expected to back the legislation.
- House Rules Committee advanced the NDAA Tuesday night, setting up a House floor debate and vote Wednesday.
- Multiple conservatives (Reps. Eric Burlison, Tim Burchett, Keith Self, Michael Cloud) say they are undecided on the procedural rule vote; Rep. Greg Steube voiced process frustrations.
- Opposition centers on the omission of a central bank digital currency (CBDC) ban and the absence of anti-abortion provisions.
- With a razor-thin majority, Speaker Mike Johnson can lose only two GOP votes on the rule, putting passage at risk.
- Final NDAA does not include provisions preempting state AI laws.
- Final NDAA also excludes a prohibition on a U.S. central bank digital currency (CBDC).
- Creates an 'Artificial Intelligence Futures Steering Committee' for long-range AI policy recommendations.