Senate Rejects AI Regulatory Ban from GOP Bill

WASHINGTON (AP) — The U.S. Senate decisively voted against a proposal to deter states from regulating artificial intelligence for a decade, removing the measure from President Donald Trump’s comprehensive tax and spending bill. The vote, 99-1, came after weeks of criticism from state officials and tech industry leaders.

The provision, originally proposed as a 10-year ban on state AI regulations, was later tied to federal funding. Only states that backed off on AI regulations would have received subsidies for broadband internet and AI infrastructure. However, the measure faced significant opposition, leading to its removal.

A last-minute Republican effort to save the provision would have shortened the ban to five years and exempted certain laws, such as those protecting children and country music performers. However, this effort was abandoned when Sen. Marsha Blackburn (R-TN) and Sen. Maria Cantwell (D-WA) introduced an amendment to strike the entire proposal.

Blackburn expressed frustration with Congress's inability to legislate on emerging technologies, including online privacy and AI-generated deepfakes. She noted that states have been proactive in protecting children and entertainers from harmful AI practices.

The vote took place during an overnight session as Republican leaders sought to secure support for the tax cut bill while fending off other proposed amendments, mostly from Democrats.

Proponents of the AI moratorium argued that a patchwork of state and local AI laws hinders progress in the AI industry and the ability of U.S. firms to compete with China. OpenAI CEO Sam Altman testified that complying with 50 different sets of regulations is nearly impossible.

However, state and local lawmakers, along with AI safety advocates, argued that the rule would grant AI companies a free pass to develop and market dangerous products without accountability. Arkansas Governor Sarah Huckabee Sanders, a leading opponent, credited Blackburn for defending states' rights to regulate AI.

Sanders, a former White House press secretary, praised the outcome, stating it was a significant victory for Republican governors, President Trump’s bill, and the American people.

Parents of children who have died due to online harms also appealed to lawmakers to remove the provision. Megan Garcia, a Florida mother, wrote that the moratorium would allow AI companies to create and launch products that sexually groom children and encourage suicide.

Sen. Ted Cruz (R-TX) attempted to broker a last-minute compromise with Blackburn, including language to protect child safety and Tennessee’s ELVIS Act, which restricts AI tools from replicating an artist’s voice without consent. Cruz claimed the deal could have passed easily but blamed outside interests for opposing it.

Blackburn, however, cited problems with the language of the amendment. Cruz ultimately joined the vote to strip the proposal, with only Sen. Thom Tillis (R-NC) opposing the removal.

Critics argue that Cruz’s proposal, while carving out some exemptions, would have affected states' enforcement of any AI rules if they were found to create an undue or disproportionate burden on AI systems.

Jim Steyer, founder and CEO of Common Sense Media, stated that the proposed ban would have halted state protections for residents without offering federal-level alternatives. The vote to remove the language was a significant victory for advocates of AI accountability.