Federal power grab threatens state sovereignty, privacy as “Big AI” collides with biotech
By willowt // 2025-05-24
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  • The U.S. House passed the One Big Beautiful Bill Act, banning states from AI regulation for a decade and aligning with FDA rules allowing biometric data use without consent.
  • The legislation faces backlash for federal overreach, eroding states’ rights to protect residents from potential AI harms in healthcare, employment, and policing.
  • Microsoft’s Stargate project, Regeneron’s acquisition of 23andMe, and FDA consent waivers create a system critics call a “federal-corporate surveillance state.”
  • Proponents argue the bill accelerates AI innovation; opponents say it sacrifices privacy and local oversight to corporate and federal actors.
  • Senators are urged to oppose the bill, with steps to contact lawmakers outlined for citizen action.
In a move critics are calling a “federal power grab,” the U.S. House of Representatives passed the 1,116-page One Big Beautiful Bill Act on Thursday, stripping states of their ability to regulate artificial intelligence (AI) for a decade. The bill, spearheaded by House Republicans, also coincides with a Food and Drug Administration (FDA) rule allowing researchers to bypass informed consent when using Americans’ genetic and medical data for studies deemed “low risk.” Conservatives and privacy advocates warn this combination of sweeping federal authority and corporate access to sensitive data could pave the way for a centralized AI-biotech surveillance system, with no recourse for citizens or states.

Unprecedented federal overreach ahead of Senate vote sparks outcry over AI, health data

The bill’s Section 43201 blocks states from enacting laws or regulations on AI design, performance, liability, or data handling for the next 10 years, while federal agencies like the Department of Defense and health corporations push to integrate AI into military systems, healthcare, and genomics research. Nearly all Republicans in the House supported the provision, with only Reps. Thomas Massie (KY) and Warren Davidson (OH) dissenting. Senate passage remains uncertain, but President Donald Trump has publicly endorsed the bill and the $500 billion “Stargate” AI initiative it supports, which CEO Larry Ellison of Oracle (a Stargate partner) described as a platform to merge AI with biotech innovations. Meanwhile, the FDA’s relaxed consent rules and Regeneron’s recent acquisition of 23andMe — which holds genetic data on millions — have raised alarms over unchecked corporate control of personal information.

Why this bill matters now

The One Big Beautiful Bill Act reframes a centuries-old debate over federalism. Since the founding, states have acted as laboratories of democracy, experimenting with regulations on everything from environmental standards to healthcare. But Section 43201 of the bill erases that power, mandating federal supremacy in AI oversight for the next decade. As Congress moves to centralize AI policy, states like Colorado and California have already led on AI regulation, enacting transparency and liability protections. For example, Colorado’s groundbreaking law forces companies to address racial bias in AI algorithms used in lending and housing. NY’s attorney general has targeted AI-driven healthcare denials. Now, those efforts — and future innovations — would be halted under the bill. “This isn’t modernization—it’s surrender,” said Texas State Senator Dawn Buckingham, a vocal opponent of federal overreach. “When the feds tell states we can’t protect our own citizens from AI harms, they’re not helping. They’re telling us to shrink back while privacy disappears.” Critics liken the bill’s provision to other federal encroachments, such as No Child Left Behind’s education mandates or the Affordable Care Act’s Medicaid expansion. “The ‘one-size-fits-all’ mindset misses the point,” said Robert Popper, a legal scholar at the American Enterprise Institute. “States can create tailored solutions. This bill takes that option off the table.”

Federal-corporate alliance: DNA, data and the Stargate connection

The timing of the bill’s House passage raises eyebrows. The FDA’s new consent waiver rule—finalized last month—permits researchers to use blood, genetic samples, and medical records without patient permission for studies it deems “minimal risk.” That same month, Stargate proponents announced its focus on AI-driven mRNA drug development targeting human genomes. Then came Regeneron’s acquisition of 23andMe: the drug giant now holds the keys to 23andMe’s 10 million DNA profiles, despite its 2023 data breach. “This is a perfect storm,” said digital rights advocate Lena Rodriguez. “Stargate’s AI can analyze your genome, the FDA lets companies use your data without consent, and Regeneron owns it all—and your state can’t stop any of it.” The Department of Homeland Security has also warned of AI’s potential to engineer gene-targeted bioweapons, even as the White House explores fast-tracking AI in bioweapon development.

Public outcry and the road ahead

Opponents argue Section 43201 is rushed and lacks oversight. While the bill funds federal AI modernization, including $500 million for purchases through 2035, its prohibitions on state laws leave accountability gaps. The lack of transparency has inspired grassroots campaigns urging senators to oppose the bill. “I’m fed up with Washington grabbing power while silencing states,” said Robbin Farmer of Liberty First USA. “This isn’t just about AI — it’s about who gets to decide what’s best for you: your state legislators, or some DOD-contractor AI?” Faced with a closely divided Senate, the bill’s fate hinges on moderate Republicans and independents. Sens. Mitt Romney (R-UT) and Susan Collins (R-ME) have privately raised concerns about its states’ rights impact.

The cost of centralized power—or the price of progress?

The One Big Beautiful Bill Act crystallizes a primal American conflict: centralized authority versus local control. Supporters argue it unleashes AI’s potential, yet opponents see a dangerous precedent that risks personal privacy and state sovereignty. As Stargate’s AI-military-biotech nexus takes shape, the Senate vote will determine whether Americans grant Washington — or retain — the ultimate right to regulate their data and destiny. Sources for this article include: Modernity.news HealthLaw.org Substack.com
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