Senate Passes Moratorium on State AI Regulations

A Republican proposal designed to prevent states from enacting their own AI regulations has successfully passed a key procedural hurdle on Saturday.

The amended rule, revised by Senate Commerce Chair Ted Cruz to comply with budgetary restrictions, specifies that federal broadband funding will be withheld from states that seek to impose AI regulations over the next ten years.

This modification seems to have been approved, as the Senate Parliamentarian has determined that it does not violate the Byrd rule — enabling its inclusion in the Republicans’ “One Big, Beautiful Bill,” which could be passed with a simple majority, thus circumventing a filibuster and eliminating the need for Democratic support in the Senate.

Nonetheless, the extent of Republican backing for the moratorium remains unclear. For instance, Republican Senator Marsha Blackburn from Tennessee recently remarked, “We do not need a moratorium that would hinder our states from stepping up to protect citizens in their areas.”

Furthermore, while the House of Representatives has already passed a version of the bill that includes a moratorium on AI regulation, far-right Representative Marjorie Taylor Greene has publicly opposed the measure, labeling it “a violation of state rights” and insisting on its removal in the Senate.

House Speaker Mike Johnson has defended the clause, highlighting support from President Donald Trump and maintaining, “We must be cautious about having 50 different states regulating AI, as it presents national security risks, doesn’t it?”

In a recent report, Americans for Responsible Innovation (a group advocating for AI regulation) indicated that “the proposal’s broad language could potentially eliminate numerous public interest state laws governing AI and other algorithmic technologies, leading to a regulatory gap across various technology policy areas without viable federal alternatives to replace the dismantled state-level protections.”

Several states seem to be advancing their own AI regulatory frameworks. In California, Governor Gavin Newsom vetoed a significant AI safety bill last year while approving several less contentious regulations related to privacy and deepfakes. In New York, an AI safety bill endorsed by state lawmakers is pending Governor Kathy Hochul’s signature. Similarly, Utah has enacted its own regulations aimed at enhancing AI transparency.