In a decisive bipartisan move, the United States Senate voted 99-1 to remove a contentious provision from President Donald Trump’s comprehensive tax and spending bill, known as the Big Beautiful Bill. This provision sought to impose a 10-year federal ban on state-level regulation of artificial intelligence (AI), effectively centralizing AI oversight under federal authority and preventing states from enacting their own AI-related laws.
Background and Provisions of the AI Moratorium
The AI moratorium was initially introduced by Senator Ted Cruz (R-TX) and garnered strong support from major technology companies, including OpenAI and Google. Proponents argued that a uniform federal approach was essential to prevent a fragmented regulatory landscape that could hinder innovation and compromise the United States’ competitiveness, particularly in relation to China. They contended that allowing individual states to implement their own AI regulations could lead to a patchwork of laws, creating compliance challenges for AI developers and companies operating across multiple jurisdictions.
Bipartisan Opposition and Concerns
Despite support from the tech industry, the moratorium faced significant opposition from both sides of the political aisle. Critics argued that the provision represented federal overreach and undermined states’ rights to protect their citizens from potential AI-related harms. They emphasized the importance of allowing states to address specific concerns related to AI, such as consumer protection, privacy, and public safety.
Senator Marsha Blackburn (R-TN), who initially co-authored a compromise to shorten the ban to five years, ultimately withdrew her support. She expressed concerns that the compromise failed to adequately protect vulnerable populations and emphasized the necessity of comprehensive federal legislation before limiting states’ ability to enact protective regulations. Senator Maria Cantwell (D-WA) also opposed the moratorium, arguing that it favored tech companies and lacked real consumer protections.
State-Level Actions and Advocacy
Several states, including Tennessee and Texas, have already enacted laws addressing AI-related issues, such as unauthorized AI-generated content and harmful uses of AI. State attorneys general from 40 states expressed deep concerns about the moratorium’s potential impact on existing and pending laws designed to protect citizens from AI-related risks. They argued that the moratorium would strip away critical state-level protections without offering federal safeguards, creating a dangerous regulatory vacuum.
Senate Decision and Implications
The overwhelming Senate vote to remove the AI moratorium reflects a commitment to preserving state autonomy in regulating emerging technologies. This decision allows states to continue developing and enforcing their own AI regulations, ensuring that they can address specific concerns and protect their residents from potential AI-related harms. The broader tax and spending bill will now proceed without the AI provision, targeting President Trump’s July 4 signing deadline.
