In a significant development for AI governance in the United States, Texas has established itself as a leader in state-level artificial intelligence regulation with the passage of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA).
Signed into law by Governor Greg Abbott on June 22, 2025, TRAIGA creates a balanced framework that addresses both government and private sector use of AI technology. The legislation will take effect on January 1, 2026, making Texas the second state after Colorado to enact comprehensive AI legislation.
TRAIGA prohibits the development or deployment of AI systems designed to manipulate human behavior, unlawfully discriminate against protected classes, or infringe on constitutional rights. For government entities, the law mandates transparency requirements, including clear disclosure to consumers when they are interacting with AI systems.
A key innovation in the Texas approach is the creation of a regulatory sandbox program that allows developers to test new AI systems in a controlled environment with temporary relief from certain state regulations. This provision aims to foster innovation while maintaining public oversight. Participants must submit quarterly reports on system performance, risk mitigation measures, and stakeholder feedback.
The law also establishes the Texas Artificial Intelligence Council, a seven-member advisory body housed within the state Department of Information Resources. This council will monitor AI use across state government, flag harmful practices, recommend legislative updates, and identify rules that may be impacting innovation.
Enforcement authority is vested exclusively in the Texas Attorney General, with civil penalties ranging from $10,000 to $200,000 for violations, plus additional daily fines for continuing violations. The law includes a 60-day notice and cure period for violators and offers safe harbor protections for organizations that substantially comply with recognized AI risk management frameworks.
Notably, TRAIGA's approach to bias mitigation focuses on prohibiting intentional discrimination rather than addressing disparate impact, with the law explicitly stating that disparate impact alone cannot establish discriminatory intent.
As federal lawmakers continue to debate national AI regulation, Texas's comprehensive approach could serve as a model for other states and potentially influence the development of federal standards in this rapidly evolving field.