Virginia governor vetoes AI bill

The IAPP reports that Virginia Governor Glenn Youngkin, a Republican, vetoed HB 2094, a measure on high-risk AI developers and deployers, making it the first 2025 state bill aimed at shaping US AI governance to be defeated. The bill would have labeled certain AI as high risk and imposed some transparency and reporting duties.

It would have required developers to reveal the limitations and dangers of AI used in significant decisions in the fields of schooling, jobs, finance, medicine and law, similar to California and Colorado laws, and to try to prevent algorithmic discrimination. Deployers would have needed a risk management plan or to follow industry-supported frameworks. It passed the Senate by two votes and the House by four, and overriding the veto would take two-thirds in both chambers. Youngkin could instead have returned it with amendments.

In his veto message, Youngkin pointed to steps Virginia has taken to use AI responsibly in state government, but said the framework would stifle innovation, fail to reflect how fast the industry moves, and burden smaller firms and startups lacking large compliance departments. He noted existing laws already protect consumers on discrimination, privacy, data use and libel. Reactions differed: EPIC's Kara Williams said the bill had too many loopholes and exemptions, while the Transparency Coalition's Jai Jaisimha said its transparency provisions offered a base for future work.

The IAPP says the veto may signal difficulty for comprehensive AI legislation and fits the White House and Republican Congress emphasis on innovation. Last year only California, Colorado and Utah passed AI governance bills. Representative Brett Guthrie said regulating as Europe or California does would leave the US uncompetitive.