State Policy Trends: 3 Key Public Policy Issues to Watch in 2025
In the world of public policy, state-level changes can result in impacts felt farther afield, in part because the passage of a law in one region of the country can inspire elected officials across the U.S. to propose similar or related legislation.
So, for public affairs professionals, keeping up with notable state policy trends is critically important. It can help busy teams gain a clear understanding of the dynamic legislative landscape, prepare for potential changes, and ultimately meet their advocacy goals, whether they’re lobbying state governments or focused on lobbying and public affairs at the national level.
In this article, you’ll find our policy watchlist outlining three key areas that we expect to receive attention in state legislatures this year. Along with these actionable insights for state-level legislation, we explain how Bloomberg Government’s integrated tools can help you efficiently and effectively monitor and analyze these developments.
[Download our 2025 State Policy Watchlist for more analysis of the key policy areas below.]
States seek to strengthen privacy laws
Although federal data privacy legislation has stalled, states are stepping up to expand consumer protections in 2025. In this arena, state-level policy trends for lobbying professionals include the likelihood of expanded privacy protection laws, plus increased legislative activity around comprehensive consumer privacy laws in the U.S. and new requirements for managing personal data.
As of January 2025, 20 states already have enacted consumer privacy laws, and more are trying to pass broader legislation to give residents more control over the personal data that companies collect and use. (For instance, states such as South Carolina and Oklahoma are advancing some legislation modeled after laws in California and Virginia.)
States also may put a particular emphasis on legislation to protect kids’ privacy, and they’re likely to consider regulating health data that isn’t protected by the federal Health Insurance Portability and Accountability Act (HIPAA). States such as Washington previously enacted laws to boost privacy protections for consumer data collected by period tracking apps, fitness monitors, and other products and services that aren’t protected under HIPAA. Illinois already requires protections for biometric and neurological data.
Bloomberg Government is a go-to resource for teams wondering how to follow state legislative changes and keep up as consumer privacy legislation unfolds. Our policy tracking tools provide real-time updates to help busy professionals stay on top of evolving privacy laws across all 50 states. Our tools also help teams better understand the latest state privacy laws affecting businesses and monitor key legislative developments and compliance deadlines.
AI regulation seeks to combat bias
Trusted AI-powered software has big benefits when professionals use it to carry out more efficient research, drafting, or other workflow-related tasks. But some automated, AI-enabled systems can have downsides such as bias – particularly when used to support decision-making in areas such as employment and housing.
Seeking to protect against these risks, Colorado lawmakers approved a first-in-the-nation anti-AI-bias law in 2024, which goes into effect in 2026. It requires AI developers to proactively assess how their products might enable discrimination against Colorado residents (which would include when an AI system is a “substantial factor” in making a “consequential decision,” which it defined as those affecting their education, employment, finances, government services, health care, housing, insurance, and legal services).
But as large tech business and start-ups aim to dramatically reduce the AI products affected by the law, Colorado is reexamining the legislation. Meanwhile, the nation looks on.
In addition, states such as California, Connecticut, New York, and Texas are considering similar legislation that would prevent automated systems from undermining the civil rights of those pursuing services from private businesses or the government.
Key areas to watch in AI decision-making regulations by state include:
- Proposals across New York, Connecticut, and Texas requiring AI model audits for bias
- Bills related to “high-risk” systems that focus on ensuring fairness in hiring and lending processes
Also of note: When it comes to state-level efforts to regulate AI, lawmakers are exploring broader guardrails for AI’s role in enabling weapons development and other public safety abuses.
If tracking AI-enabled discrimination legislation is a priority for your team this year, consider using Bloomberg Government’s policy analysis tools to keep you informed about draft measures and discrimination laws – and ensure your strategies align with emerging standards.
Affordability and pay equity take center stage
In 2025, inflation, affordability, and pay equity continue to be critical issues as voters seek relief from inflation and legislatures brace for cuts to federal funding. And as “a record” 88 jurisdictions – 23 states and 65 cities and counties – will raise their minimum wages by the end of 2025, per the National Employment Law Project, we may continue to see an increased focus on policies that directly impact household budgets.
Notable trends in this arena include:
- Affordability initiatives, such as those focused on energy and housing, are gaining traction in New York and California.
- Salary range disclosure laws related to the pay range in job postings expand to states including Illinois and Minnesota, with these pay transparency laws aiming to reduce the wage gap for women and workers of color by giving them more information during their job search and salary negotiations. Employers in these states will be required to disclose pay ranges in job postings, mirroring earlier laws in California and New York.
- Additional legislation seeks to promote pay equity in other ways. For example, in Illinois and New Jersey, employers must give reasonable notice of promotion opportunities to their employees.
Bloomberg Government’s legislative tracking tools can help you keep track of affordability and pay equity policies, ensuring you’re prepared to advise clients on the advocacy and business implications related to housing and energy affordability as well as wage transparency.
[Download the 2025 State Policy Watchlist for our full expert breakdown of the trending policy areas outlined above and more.]
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