In a decisive vote, the US Senate has opted to eliminate a moratorium that restricted states from regulating artificial intelligence systems, part of the broader Republican omnibus budget proposal. Legislators reached a consensus with a vote tally of 99 to 1, though the contentious measure remains a topic of ongoing debate within the budget discussions.
The vote came after failed attempts to amend the moratorium, which faced strong opposition from figures such as Senator Marsha Blackburn (R-TN), one of its earliest critics. Over the weekend, Blackburn negotiated a compromise with Senator Ted Cruz (R-TX) that proposed a five-year moratorium while permitting states to uphold laws concerning online child safety and the use of individuals’ names and likenesses. However, faced with significant backlash from right-wing groups led by influential figures like Steve Bannon and Mike Davis, Blackburn ultimately withdrew her support and aligned herself with a Democrat-backed amendment aimed at removing the bill entirely.
“While I appreciate Chairman Cruz’s efforts to find acceptable language that allows states to protect their citizens from the abuses of AI, the current language is not acceptable to those who need those provisions the most,” Blackburn conveyed in a statement on Monday night. “This provision could allow Big Tech to continue to exploit kids, creators, and conservatives.”
Notable Republican dissenters in the early stages included Senators Susan Collins (R-ME), Josh Hawley (R-MO), known for his anti-tech stance, and Rand Paul (R-KY), who expressed concerns about federal overreach. In the end, nearly all senators agreed to eliminate the AI provisions, with only Senator Thom Tillis (R-NC) opposing the move. The Senate is scheduled to conduct a budget reconciliation vote before the bill progresses back to the House and eventually to President Donald Trump for approval.
The House initially included the moratorium in its version of Trump’s funding megabill, narrowly passing it with a 215-214 vote in May. The intention behind the measure was to prevent an inconsistent patchwork of state regulations on AI, which could hinder industry development. However, controversy surrounded the proposal even before the Senate engaged in formal discussions, which mandated states to forgo regulating AI and “automated decision systems” to qualify for federal broadband funding. This contentious provision escalated an already fraught debate over the bill, prompting intense negotiations and subsequent efforts to thwart its passage.
Fracture lines within the Senate GOP became pronounced over various amendments to the bill, particularly due to the AI moratorium, which drew conflicting viewpoints from factions that often oppose Big Tech and federal intervention. A letter circulated last week to Senate Majority Leader John Thune (R-SD) from several Republican senators, including Hawley and Paul, echoed concerns over the legislation, particularly its implications for existing state AI laws, such as the one in Tennessee that aims to protect individuals’ likeness in generative AI contexts.
In contrast, Cruz, a prominent hard-right figure and chair of the Senate Commerce, Science, and Transportation Committee, introduced an amendment that would restrict states with existing AI regulations from accessing federal funds designated for AI advancement.
The moratorium’s unpopularity among state-level Republican leaders has been clear, with 37 state attorneys general and 17 governors recently sending letters to Thune urging the removal of this clause. Governor Sarah Huckabee Sanders of Arkansas, who previously served as Trump’s press secretary, publicly criticized the bill in a Washington Post op-ed, claiming it undermines states’ authority to safeguard their citizens. Critics also argued that the bill’s broad definition of “AI” could inadvertently ban a range of essential software- and internet-related regulations, potentially including Republican-supported state-level online child safety initiatives.
