States could take a larger role in regulating AI after Democrats won control of both chambers of Congress in the Nov. 3 midterm elections, according to reporting from Time and CNBC.
AI was on voters’ minds. Fifty-six percent of voters said AI and data centers were a “crucial or major factor” in their vote for Congress, according to an NBC News exit poll.
Sweeping federal AI regulation is unlikely in the near term. Even with control of both chambers, Democrats would need enough Republican votes to override a possible presidential veto, Time reported. The new Congress could, however, try to reverse Republican attempts to stop states from passing their own AI laws.
Brendan Steinhauser, a Republican strategist and CEO of the Alliance for Secure AI, told Time he expects more movement at the state level, predicting “a big deluge of bills at the state and federal level” for the AI industry.
Scott Singer, a fellow at the Carnegie Endowment for International Peace, told Time that a gridlocked Congress would leave California to set AI rules for the U.S. and the world. Mr. Singer helped lead the writing of a report, commissioned by California Gov. Gavin Newsom, that shaped SB 53. Time called the law the first in the U.S. to regulate frontier AI systems.
For health systems, a bigger state role would add to rules that are already piling up. Lawmakers in 47 states introduced more than 250 bills regulating AI in healthcare in 2025, and 33 were signed into law across 21 states, according to a Manatt Health analysis. Those laws range from patient disclosure requirements and limits on AI therapy to guardrails on AI in prior authorization.
Texas could also see changes. Democrats James Talarico and Gina Hinojosa won the state’s U.S. Senate and governor races, respectively, and Ms. Hinojosa has pledged to curb corporate subsidies and data center expansion, according to CNBC. Gary Cohn, former National Economic Council director and IBM vice chairman, said the Texas results could signal coming scrutiny of Big Tech and further data center regulation in the state. But Mr. Cohn said tighter limits could ultimately make the buildout more valuable by creating scarcity.
Not every new governor will have a free hand. Many incoming Democratic governors will still face Republican-controlled legislatures, which could limit their ability to enact sweeping changes, CNBC reported.
Voters also weighed in on AI infrastructure directly. Data center restrictions or related development measures were on the ballot in 10 states, and voters sided against the buildout in 40 of the 41 measures, according to Ballotpedia data and additional analysis by CNBC.
AI ranked 29th of 39 issues voters care about in polling from Blue Rose Research, a progressive research firm. But no other issue has gained more ground with voters over the past year, according to Time.
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