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The amazing folks at the Future of Privacy Forum offer their preview of the 2026 legislative season with a refreshingly honest admission–it’s impossible to make a prediction of what the new year will look like from a privacy policy perspective. While there are certainly some big trends afoot, there is no overarching piece of Federal legislation that ties it all together. Below is a summary of the trends identified. The full article details the five major trends, and leaves us with the unresolved question if states are going to lead the privacy charge, or will federal laws emerge to take policy precedent.
Here are the five major questions the authors identify:
First, does the absence of new comprehensive state privacy laws in 2025 signal stability or foreshadow deeper fragmentation?
Although no new state comprehensive privacy laws were enacted in 2025—leaving the total at 19 or 20—this slowdown did not reflect reduced legislative activity. States amended existing laws, considered hundreds of privacy-related bills, and passed sector-specific legislation addressing AI, health data, and youth safety. Several states, including Alabama, Massachusetts, Vermont, and Pennsylvania, advanced comprehensive privacy bills that could resurface in 2026.
This pause could indicate that states have reached a saturation point, producing a stable map of “privacy law states” and “non-privacy law states.” Alternatively, it could mark an inflection point. A group of New England states—particularly Vermont, Maine, and Massachusetts—are considering far more stringent privacy frameworks. These proposals emphasize strong data minimization rules, restrictions on selling sensitive data, bans on targeted advertising to minors, and, in Vermont’s case, a private right of action. If enacted, these laws would push state privacy policy in a more restrictive direction and potentially fracture the increasingly dominant “Connecticut model” that has guided many states thus far.
Second, are age signals poised to become the dominant approach to youth online protections?
A persistent challenge in youth privacy legislation is determining how companies can identify minors without imposing invasive age verification. In 2025, lawmakers pivoted toward “age signals” frameworks, which shift responsibility for age determination upstream to app stores or operating system providers.
Two distinct models emerged. The App Store Accountability Act (ASAA), enacted in Utah, Texas, and Louisiana, requires app stores to verify user ages, obtain parental consent for minors, and transmit age signals to developers. This approach imposes substantial technical and legal obligations and has already prompted constitutional challenges, particularly in Texas. In contrast, California’s AB 1043 requires operating system providers to collect age information during device setup and share it with developers solely to facilitate compliance with existing laws like COPPA and the CCPA. This narrower model has garnered industry support and has not yet faced legal challenges.
Looking ahead, court decisions on ASAA—along with federal interest in nationalizing the framework—may shape whether states pursue aggressive age signaling mandates or gravitate toward California’s more limited, potentially durable approach.
Third, will 2026 continue to be the “year of the chatbots,” or will lawmakers shift strategies?
In 2025, AI chatbots became central to policy debates, especially following high-profile incidents involving “companion chatbots” allegedly encouraging self-harm among minors. States such as California and New York responded with disclosure-based laws requiring chatbot operators to clearly identify AI interactions and maintain safety protocols, particularly for youth. Notably, these laws avoided outright bans, favoring transparency over prohibition.
Momentum is continuing into 2026, with new chatbot bills pre-filed in several states. While most proposals still focus on youth safety and mental health, policymakers are also beginning to explore chatbot use in education, elder care, and employment. At the federal level, bipartisan proposals range from disclosure-focused measures to outright restrictions on minors’ access to companion chatbots. The central question is whether lawmakers will maintain disclosure-first approaches or move toward stricter use limitations, potentially reshaping or preempting state efforts.
Fourth, will health and location data remain at the center of sensitive data debates?
Health and location data dominated sensitive data discussions in 2025 and show no signs of fading. States proposed and enacted laws restricting the collection, use, and sale of health inferences, neural data, and precise location data. High-profile proposals like New York’s Health Information Privacy Act would significantly expand the scope of regulated health information and impose stringent consent and necessity standards. At the federal level, proposals such as HIPRA seek to modernize health privacy protections to cover emerging technologies like wearables and health apps.
Location data has also faced heightened scrutiny. States such as Oregon and Colorado amended their privacy laws to restrict or ban the sale of precise location data, while enforcement actions in Texas and at the FTC highlighted ongoing compliance risks. As definitions evolve and enforcement intensifies, organizations are increasingly urged to adopt robust data governance practices to navigate growing complexity.
Finally, will federal efforts to curb state AI regulation redefine the policy landscape?
A defining development in 2025 was the federal government’s renewed interest in limiting state AI laws. After failed legislative attempts, the administration issued an executive order aimed at constraining “excessive” state AI regulation through litigation pressure and funding restrictions. However, ambiguity over what qualifies as an “AI law” creates uncertainty, as many state measures embed AI provisions within broader privacy or consumer protection frameworks.
The executive order carves out areas such as child safety and state government AI use, but leaves significant room for interpretation. A critical question for 2026 is whether federal limits on state AI regulation will be paired with a substantive national framework—or whether states will be constrained without a federal baseline to replace their efforts. The resolution of this tension may ultimately shape not only AI governance, but the future architecture of U.S. privacy law itself.
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