As the U.S. federal government endures a partial funding shutdown, a significant gap has emerged in technology regulation and oversight. With key federal agencies such as the Federal Communications Commission (FCC) and other tech-policy functions facing operational slowdowns, state governments have taken up the mantle to lead in addressing issues in the tech sector. At the forefront of this shift is California, which has rapidly positioned itself as a national leader in technology policy through bold legislative action.
In October 2025, California’s governor signed a series of landmark bills that directly address growing concerns over artificial intelligence (AI) and privacy rights. These measures reflect a larger trend where states are stepping into the void left by a stalled federal government, using their legislative powers to create frameworks for regulating technologies that are advancing at an unprecedented pace.
One of the most significant pieces of legislation signed into law is the Transparency in Frontier Artificial Intelligence Act (SB 53). This bill mandates that large AI developers disclose their safety protocols and provide incident reports related to AI systems, especially in contexts where public safety could be at risk. The legislation aims to increase accountability in an industry that has been criticized for its opacity in both design and operational practices. By requiring developers to disclose information about their AI systems, California hopes to encourage safer development practices and a more transparent dialogue surrounding the risks posed by AI technologies.
Additionally, California introduced SB 524, a bill that places strict controls on the use of AI-generated content by law enforcement. This bill was introduced in response to concerns over the potential misuse of deepfake technology and other AI tools that can manipulate video and audio content. The law aims to ensure that law enforcement agencies are held to high standards in how they use such technologies, safeguarding individuals’ rights and preventing abuses that could harm the public’s trust in legal processes.
Alongside these AI-specific measures, California has also enacted three significant privacy laws designed to strengthen consumer rights and improve digital transparency. These include AB 566, AB 656, and SB 361, which focus on browser opt-out mechanisms, the deletion of social-media accounts, and mandatory data-broker disclosure. These new laws provide California residents with greater control over their personal data, ensuring that consumers have the ability to limit tracking and data collection practices that have become prevalent online. They also mandate that social-media platforms make it easier for users to delete their accounts, addressing growing concerns about the permanence of digital identities and the risks associated with long-term data storage by corporations.
The timing of these legislative actions is particularly significant. With the federal government unable to act due to the shutdown, California’s proactive stance has not only provided immediate solutions to some of the most pressing tech policy issues but also set the stage for broader national discussions about how technology should be regulated. Legal experts suggest that California’s move could serve as a model for other states and influence the direction of federal tech-policy once agencies resume full operations. As the federal government continues to grapple with its budgetary and political challenges, California’s leadership may very well shape the future of U.S. tech policy for years to come.
This development signals a broader shift in how tech policy is approached across the nation. While the federal government traditionally held the reins in regulating industries like telecommunications and technology, the ongoing partial shutdown has exposed vulnerabilities in the federal framework. As California’s actions indicate, state governments are increasingly filling the gaps left by Washington, taking on roles that may have once been viewed as the exclusive domain of federal agencies.
The question remains: will other states follow California’s lead, and how will the federal government respond when it eventually resumes full operation? For now, California stands as a powerful example of how state-level action can shape national policy, particularly in the rapidly evolving and often volatile tech industry.
