Over late October–mid November 2025, state-versus-federal governance crystallized as the key driver of U.S. AI policy: states passed aggressive measures (Colorado’s AI Act, effective June 30, 2026, mandates prevention of “algorithmic discrimination,” appeals rights and human review; California allows suits against chatbot firms with civil penalties up to $1,000 per violation), and lawmakers introduced or considered over 1,100 AI-related bills nationwide in 2025. A House provision in HR1 sought a 10-year federal moratorium on state AI rules but the Senate voted 99–1 on 2025-07-01 to strike it. At the federal level, the GAIN AI Act (H.R.5885) was introduced on 2025-10-31 to restrict exports of advanced AI chips and require priority access for U.S. persons. These developments accelerate compliance and enforcement tests for firms, may reshape supply chains, and leave Congress’ balance between innovation and protection decisive for next steps.