Virginia governor vetoes comprehensive AI consumer protections

by Madyson Fitzgerald, Virginia Mercury
March 27, 2025

Virginia Republican Gov. Glenn Youngkin vetoed legislation Monday that would have required developers and companies using “high-risk” artificial intelligence systems to take steps to protect consumers from discrimination.

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If signed into law, Virginia would have become the second state to enact comprehensive artificial intelligence rules, behind Colorado. The Virginia measure would have made companies responsible for protecting consumers from bias in areas such as hiring, housing and health care decisions.

In his veto explanation, Youngkin said that while he supports responsible governance of artificial intelligence, the bill’s framework “fails to account for the rapidly evolving and fast-moving nature of the AI industry and puts an especially onerous burden on smaller firms and startups that lack large legal compliance departments.”

The bill, sponsored by Virginia Democratic state Del. Michelle Lopes Maldonado, would have required AI developers to disclose the intended uses of their AI system while assessing its risks and limitations. Businesses using these systems would then be required to implement risk management policies. Both AI developers and deployers would have been subject to civil penalties for noncompliance.

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While many companies use artificial intelligence, the measure would have applied only to the ones developing and using “high-risk” AI systems, such as those used for employment decisions or financial services.

“I think it’s really critical for us to create guardrails and frameworks that are flexible and breathable, so that we don’t stifle innovation and creativity,” Maldonado told the Virginia Mercury when introducing the bill in January.

Opponents of the bill, including the Chamber of Progress, a center-left tech industry coalition, argued that it would hinder innovation and cost taxpayers.

AI should be regulated sector by sector, said Brianna January, Chamber of Progress’ Northeast state and local government relations director.

“When you have an omnibus approach like HB 2094, you unintentionally stack the cards against smaller innovators that want to operate in the state because you’re creating such a regulatory and liability framework that really only the big players can operate in,” January said in a phone interview.

While the Trump administration has lowered some artificial intelligence guardrails in hopes of boosting innovation, states are continuing to establish policies for the safe use of AI, including measures to prevent algorithmic discrimination.

Lawmakers in other states — including California, Maryland, Massachusetts, Nebraska, New York, Texas and more — are considering similar legislation to curb potential AI abuses.

Stateline reporter Madyson Fitzgerald can be reached at mfitzgerald@stateline.org.

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