Senate Passes Temporary Halt on State AI Regulations

A Republican effort designed to prevent states from creating their own AI regulations has successfully navigated a major procedural hurdle as of Saturday.

The updated rule, adjusted by Senate Commerce Chair Ted Cruz to align with budget requirements, specifies that federal broadband funding will be withheld from any states seeking to establish AI regulations over the next decade.

This change seems to have gained acceptance, as the Senate Parliamentarian has determined it adheres to the Byrd rule—facilitating its incorporation into the Republicans’ “One Big, Beautiful Bill.” This bill could be passed with a simple majority, allowing it to sidestep a filibuster and eliminate the necessity for Democratic support in the Senate.

Nonetheless, the extent of Republican backing for the moratorium is still unclear. For instance, Republican Senator Marsha Blackburn from Tennessee recently remarked, “We do not need a moratorium that would hinder our states from taking measures to safeguard their residents.”

Additionally, while the House of Representatives has approved a version of the bill that includes a moratorium on AI regulation, far-right Representative Marjorie Taylor Greene has vocally opposed it, labeling it “a violation of state rights” and calling for its removal in the Senate.

House Speaker Mike Johnson has defended this provision, pointing to support from President Donald Trump and stating, “We must be mindful of having 50 different states regulating AI, as it raises national security issues, doesn’t it?”

In a recent report, Americans for Responsible Innovation (a group advocating for AI regulation) mentioned that “the proposal’s broad terminology could potentially eliminate numerous public interest state laws concerning AI and other algorithmic technologies, resulting in a regulatory gap in various tech policy sectors without adequate federal substitutes for the revoked state-level protections.”

Several states appear to be advancing their own AI regulatory frameworks. In California, Governor Gavin Newsom vetoed a significant AI safety bill last year but has sanctioned several less contentious regulations addressing privacy and deepfakes. In New York, an AI safety bill supported by state legislators is pending Governor Kathy Hochul’s approval. Likewise, Utah has enacted its own regulations aimed at enhancing AI transparency.