A controversial Republican-led effort to prevent states from enforcing their own artificial intelligence (AI) regulations has taken a major step forward in the U.S. Senate.
What’s in the Proposal?
Senate Commerce Chair Ted Cruz rewrote the provision to comply with budgetary rules. Under the revised language, states that attempt to enforce AI regulations in the next 10 years could lose federal broadband funding.
The rewrite passed review by the Senate Parliamentarian, who ruled that it’s not subject to the Byrd rule — a budgetary limitation that could’ve derailed the provision. This clears the way for it to be included in Republicans’ broader legislative package, known as “One Big, Beautiful Bill.”
Because of the ruling, the measure can now be passed with a simple majority, avoiding the threat of a filibuster and bypassing the need for Democratic support in the Senate.
Divisions Within the GOP
Despite the procedural victory, not all Republicans are on board.
Senator Marsha Blackburn of Tennessee said:
“We do not need a moratorium that would prohibit our states from stepping up and protecting citizens in their state.”
Over in the House, which already passed a version of the bill containing the moratorium, Representative Marjorie Taylor Greene came out in fierce opposition. She called the provision:
“A violation of state rights” and demanded that it be “stripped out in the Senate.”
Support from Trump, Pushback from Advocates
House Speaker Mike Johnson, defending the moratorium, emphasized that the measure has backing from former President Donald Trump, saying:
“We have to be careful not to have 50 different states regulating AI, because it has national security implications, right?”
But critics are concerned. A recent report from Americans for Responsible Innovation, an AI regulation advocacy group, warned:
“The proposal’s broad language could potentially sweep away a wide range of public interest state legislation regulating AI and other algorithmic-based technologies, creating a regulatory vacuum across multiple technology policy domains without offering federal alternatives to replace the eliminated state-level guardrails.”
What Are States Doing About AI?
Several U.S. states have already begun exploring AI regulations, with differing approaches:
- California: Governor Gavin Newsom vetoed a widely discussed AI safety bill last year but approved narrower regulations focused on privacy and deepfakes.
- New York: Lawmakers passed an AI safety bill, now awaiting a signature from Governor Kathy Hochul.
- Utah: The state has already enacted legislation centered on AI transparency.
The Bigger Picture
If passed, the moratorium could delay state-level AI safeguards for a decade, while the federal government has yet to establish a comprehensive AI regulatory framework. The move may prevent fragmented oversight but could also undermine local efforts to address pressing ethical and safety concerns tied to algorithmic technologies.
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