The U.S. Senate has voted decisively against a controversial proposal aimed at imposing a 10-year moratorium on state-level regulations for artificial intelligence.
In a resounding 99-1 vote, the Senate struck down the provision on Tuesday, following intense criticism from officials across the political spectrum, including Republican and Democratic governors.
Initially introduced as a ban on states regulating AI for a decade, the proposal was later modified to tie state funding to compliance, meaning states would only qualify for federal subsidies for broadband internet or AI infrastructure if they refrained from regulating AI.
Last-minute efforts by Republicans to salvage the proposal sought to shorten the moratorium to five years and exempt specific AI regulations intended to safeguard children or protect artists in the music industry.
However, these efforts were ultimately abandoned when Sen. Marsha Blackburn, a Tennessee Republican, aligned with Democratic Sen. Maria Cantwell of Washington to introduce an amendment to eliminate the proposal entirely.
Blackburn expressed frustrations on the Senate floor regarding Congress’s failure to effectively legislate emerging technologies, including topics such as online privacy and AI-generated content, commonly referred to as “deepfakes.”
She emphasized, “But you know who has passed it? It is our states. They’re the ones that are protecting children in the virtual space.”
The voting on the amendment occurred during a late-night session, as Republican leaders sought to gather support for the tax cut bill while navigating proposed amendments from primarily Democratic senators aiming to alter the package.
Proponents of the now-defeated AI moratorium argued that inconsistent state regulations were stifling the growth of the AI industry and undermining the competitive edge of U.S. firms against foreign counterparts, particularly in China.
Tech industry leaders had previously noted the difficulties in compliance with multiple state regulations, with OpenAI CEO Sam Altman stating it was challenging to manage 50 different sets of rules.
In contrast, local lawmakers, along with advocates for AI safety, warned that the proposed rule would excuse AI companies from accountability. A coalition of GOP governors, led by Arkansas Gov. Sarah Huckabee Sanders, penned a letter opposing the moratorium, advocating for states’ rights to regulate AI effectively.
Sanders praised Blackburn for her leadership in stridently defending the ability of states to legislate on AI issues.
“This is a monumental win for Republican Governors, President Trump’s one, big beautiful bill, and the American people,” she said in a post on X.
Additionally, voices from families affected by online harms contributed to the call to dismiss the proposal.
Megan Garcia, a Florida mother who lost her son to online dangers allegedly exacerbated by an AI chatbot, articulated her concerns in a letter to lawmakers.
She asserted, “In the absence of federal action, the moratorium gives AI companies exactly what they want: a license to develop and market dangerous products with impunity — with no rules and no accountability.”
Garcia’s testimony highlighted the urgent need for regulations that hold companies accountable for the potential repercussions of their AI technologies.
Republican Sen. Ted Cruz of Texas, who initially championed the moratorium, attempted to negotiate a compromise with Blackburn.
These negotiations included proposed language aimed at safeguarding child welfare and Tennessee’s ELVIS Act, designed to protect the rights of artists from unauthorized replication of their work.
Cruz later expressed frustration, stating that Blackburn’s withdrawal from the negotiations could have resulted in a beneficial deal.
He remarked, “When I spoke to President Trump last night, he said it was a terrific agreement.”
However, Blackburn indicated there were complications with the language of the proposed amendment.
In a twist of irony, Cruz, who sought to maintain the provision, ultimately joined the majority in voting to eliminate it.
Sen. Thom Tillis, a Republican from North Carolina, was the sole senator to cast a vote against the amendment, opposing the elimination of the AI provision.
Jim Steyer, founder of the advocacy group Common Sense Media, commented on the decision, emphasizing that the ban would have hindered states from protecting their residents while offering nothing substantial at the federal level.
“The proposed ban that has now been removed would have stopped states from protecting their residents while offering nothing in return at the federal level,” he noted in a statement.
With the overwhelming support from the Senate to strike the provision, the defeat marks a significant moment in the ongoing dialogue about the regulation of artificial intelligence and the balance of power between state and federal legislatures.
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