Here’s a sentence I never thought I’d write: Missouri tried to regulate AI, but宽带 funding got in the way.

That’s actually what happened. Missouri’s state Senate stalled a bipartisan AI regulation bill last week—not over the substance of the legislation, but because lawmakers were terrified that passing it would jeopardize nearly $900 million in federal broadband funds for rural internet expansion.

The Bill Itself

The legislation, sponsored by GOP state Sen. Joe Nicola, had some reasonable ideas:

  • Liability for AI-caused harm always resides with a person or organization—company or user—not the AI itself.
  • AI cannot be granted legal personhood.
  • No marrying AI partners (yes, seriously).
  • AI cannot own property or be an officer of a corporation.

There were also amendments addressing age verification for minors using AI chatbots, prohibiting AI from prescribing medication, and banning NDAs in AI-related lawsuits.

None of this is radical. It’s mostly common-sense guardrails. But it stalled anyway.

The Real Problem: Trump and Broadband

Last December, President Trump issued an executive order establishing an AI Litigation Task Force within the U.S. Department of Justice. The task force’s job: challenge “onerous” state AI laws that conflict with a national policy of “a minimally burdensome national policy framework for AI.”

More concretely, Trump indicated that states with overly burdensome AI laws would be ineligible for remaining “non-deployment” funds from the $42.5 billion federal Broadband Equity Access and Deployment Program. Missouri was awarded $1.7 billion originally, and $814 million of that has already been approved. But there’s another $900 million still on the line.

Missouri lawmakers from rural districts—notably Republican state Sen. Jason Bean—made clear during debate: the bill wasn’t worth risking that funding.

“Deployment of rural broadband, it’s not an easy task. It’s extremely important,” Bean said. “There’s underserved, but there’s also areas that are not served at all. And I think this would be very, very concerning if we put at risk our federal funding.”

The Absurdity of the Moment

Let’s be clear about what’s happening here: a state that wants to pass basic AI consumer protections is being held hostage by the threat of losing broadband money for rural Americans who don’t have internet access.

It’s a perfect example of how federal pressure is weaponizing infrastructure to prevent states from doing anything meaningful on AI. The White House’s position is essentially: you can have rural broadband, or you can have consumer protection from AI—pick one.

Nicola told the Missouri Independent he’s planning to seek feedback from the White House about the bill. Which is a nice way of saying: we’re waiting for permission from the federal government to protect our own citizens.

What This Tells Us

This isn’t just Missouri’s problem. States across the country are now in the same bind. They want to regulate AI, but federal pressure makes it economically dangerous to do so.

Congress still hasn’t passed any meaningful AI legislation. The Trump administration issued a “national AI policy framework” on March 20, but it’s guidance, not law. In the absence of federal action, states have been trying to fill the gap—until the federal government started threatening to punish them for it.

Missouri’s bill might still pass. But the fact that it stalled over broadband money tells you everything about the state of AI governance in America. We’re not even debating whether to regulate AI anymore. We’re debating whether states are allowed to try.

That’s a far cry from where the EU is right now, where companies are actually building compliance infrastructure for the AI Act. In America, we’re watching states get bullied out of protecting their citizens.

Your move, Congress.