US Policy & Politics Brief

Federal Preemption Battles: Privacy, Prediction Markets, School Choice, Grant Rules, Farm Bill Rider, and New Challenges

Federal Preemption Battles: Privacy, Prediction Markets, School Choice, Grant Rules, Farm Bill Rider, and New Challenges

Key Questions

What federal preemption conflicts are highlighted in privacy and AI regulation?

Multiple clashes include SCOTUS upholding FCC privacy fines and the Great American AI Act proposing state moratoriums on AI rules. Anthropic pushes for mandatory federal regulation while Warren criticizes tech influence. The JAWBONE Act and new federal rule on trans existence add to ongoing preemption debates.

How are states challenging federal immigration and ICE policies?

NY sues the Trump admin over ICE accountability laws while Texas SB4 is approved and TN immigration law faces challenges. New Mexico DOJ seeks dismissal of a Trump immigration lawsuit. Federal agents visited a children's legal aid office without warrant, escalating enforcement issues.

What changes are proposed in federal grant rules and the Farm Bill?

OMB grant rule comments are due July 13 with new rules giving political appointees veto power over grants. A Farm Bill rider threatens over 1,000 state laws by removing pesticide liability provisions. Indiana received an ED waiver for education funding flexibility.

Multiple federalism clashes continue: SCOTUS birthright citizenship ruling; NY sues Trump admin over ICE accountability laws; DOJ sues California over Glock ban and handgun roster; Forest Service reduces public oversight; OMB grant rule comment deadline July 13; Farm Bill rider threatens 1,000+ state laws; cannabis policy fracturing; SCOTUS upholds FCC privacy fines; House passes PFAS phase-out, immigration funding, war powers resolution; SAVE Act stalls; SNAP conditions paused; TN immigration law challenged; Texas SB4 approved; AI Executive Order analysis; Trump reverses AI regulation; Great American AI Act proposes state moratorium; Anthropic pushes mandatory regulation; Warren criticizes tech influence; insulin cap bill advances; H-1B fee blocked; Chip Roy bill restricts visas; Ohio gun rights ruling; SCOTUS guts VRA; EPA weakens PFAS limits; data center pushback grows; FCC shot clocks; FAR clause on DEI (Dem states sue); new federal rule on trans existence; JAWBONE Act; NC homeless bills; wildfire smoke bill; Congress blocks FISA 702 extension; DOJ charges in migrant child smuggling scheme; California 'Hands Off Our Elections' initiative; Senate rejects marijuana restructuring bill; New Mexico DOJ seeks dismissal of Trump immigration lawsuit; OMB proposed changes to Uniform Guidance. New: Federal judge acquits Brad Lander; House passes Faster Labor Contracts Act; HUD suspends LA homeless funding; FISA 702 expiration poll; Senate passes Stop Secret Spending Act; Crapo backs SHOT Act; Cotton introduces biological smuggling penalties; H.R. 2096 to override D.C. police reform; King health bill; continued need for federal privacy legislation. Also new: Indiana ED waiver for education funding flexibility; federal contracting reshaping; Husted AI child safety bill; reproductive healthcare leave bill (12 days paid); state immigration actions roundup; BUILD America 250 Act amendment to preempt state rideshare safety laws; DOJ halts Evanston reparations program; US orders Anthropic to block AI models for foreign nationals; Big Beautiful Bill health impacts; bipartisan bill for military homeschooling stability. New state education policy developments: Massachusetts reading reform bill (ban three-cueing, mandate phonics) poised to pass; K-12 funding formulas analysis video; midyear state policy analysis covering attacks on patients and shield law providers. Latest: Trump ties FISA renewal to voter ID, pauses Jay Clayton confirmation; John Kennedy grills OMB nominee Duncan, exposing hidden grant funding and new OMB rule giving political appointees veto power; federal agents (ICE/HHS OIG) visited children's legal aid office without warrant, escalating immigration enforcement against legal aid; VP Vance speaks on fraud crackdown in NY; DeSantis signs five public safety bills; Newsom's final California budget includes new software tax, structural deficits; Trump signals return of Russia oil sanctions. Congressional deal to ban Fed CBDC with 2030 sunset adds to financial policy preemption debates. Also: Senate Armed Services Committee passed FY2027 NDAA 18-9 with $5.4B increase for destroyer, 3.6% pay raise, Ukraine aid, anti-politicization measures. New: SCOTUS strikes down §922(g)(3) firearm ban for drug users under Bruen; Protect College Sports Act passes Senate committee (federal preemption of state NIL laws); Anthropic partners with Code for America for AI in SNAP; White House pushes nuclear UPRISE initiative; Trump's legislative affairs director discusses filibuster strategy; Trump signs US-Iran deal. Newest: Hawley/Hassan rural hospital ER funding bill; Senate passes RESIDE Act for vacant building conversion; DeSantis signs property tax transparency and millage rate bills; House passes major housing bill with corporate investor ban (358-32); Illinois introduces 0.2% digital asset privilege tax; California AB 1821 would limit public records access; Goodlander files bipartisan bill to ban stock trading and prediction markets for Congress; Cato analysis argues Trump's second term marks shift to state capitalism with direct equity stakes in 28 companies. Latest additions: Rep. Moran introduces AI incident reporting bill (7-day reporting); 260+ AI laws enacted by June 2026; Federal judge blocks USDA SNAP soda/candy restrictions via state waivers; Federal judge vacates Biden administrative closure rule; Farm Bill analysis shows pesticide liability removed from House version. New this run: SCOTUS birthright citizenship ruling; NY sues Trump admin over ICE accountability laws; DOJ sues California over Glock ban; Forest Service reduces public oversight; State tax credits 2026; Trump immigration policy shift affecting state populations; Massachusetts housing incrementalism; Colorado school cellphone policies; Federal housing legislation history. Also new: Montana land exchange lawsuit; 2026 State Health Policy Trends Report; Washington income tax ballot fight; Federal citizenship tightening; Local government budgeting challenges; Maryland data center moratoriums; Arizona voucher oversight ballot; Maine gun safety scorecards; Roundup: FDA approves flavored Zyn, EPA drops microplastics testing, SCOTUS loosens campaign finance limits, DOJ settles with Abbott.

Sources (2)
Updated Jul 4, 2026