States filling regulation vacuum. New York and California are setting de facto safety rules for frontier AI companies as Congress struggles to settle on federal standards. Supporters argue this creates accountability where none previously existed.
211D AGOSTATENY GOVERNOR KATHLEEN HOCHULAI
Hochul Defies Trump, Enacts Landmark AI Safety Law
What's the gist?
Governor Kathy Hochul signed the RAISE Act on December 20, 2025, making New York the second state after California to impose safety regulations on powerful AI models. The law requires AI developers to report safety incidents within 72 hours and creates a new oversight office within the Department of Financial Services.
Context
The RAISE Act passed both chambers of the state legislature in June with bipartisan support. Following lobbying from the tech industry, Hochul proposed changes to scale the bill back, but ultimately agreed to sign the original bill while lawmakers agreed to make her requested changes next year.
Positive takes
Transparency for public safety. The RAISE Act establishes rules for greater transparency, requiring companies to publish information about their safety protocols and face penalties of up to $1 million for the first violation and up to $3 million for subsequent violations.
Industry backing from key players. Both OpenAI and Anthropic expressed support for New York's bill while also calling for federal legislation. This suggests that thoughtful regulation can coexist with technological progress.
Negative takes
Innovation at risk. Tech industry groups such as NetChoice and the Chamber of Progress have opposed the bill, claiming it will be ineffective and stifle innovation. Critics warn compliance costs could push startups toward states with fewer regulations.
Federal-state conflict looms. President Trump signed an executive order on December 11 directing federal agencies to challenge state AI laws, setting up likely legal battles that could render state efforts meaningless.
Weakened from original vision. The penalties aren't nearly as steep as initially presented—while the original bill included fines of up to $10 million for a first violation, Hochul's version sets fines at up to $1 million.
— by VoiceWhat's Voice? Read this.
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