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Blackburn says AI deal with Cruz is off

  • On Monday night, Republican Senator Marsha Blackburn withdrew support, leading to the collapse of the AI moratorium deal tied to President Trump's bill.
  • Following the deal's collapse, over 40 state attorneys general and 17 Republican governors opposed a five-year AI regulation freeze, citing threats to state rights.
  • Only states that comply can access $500 million in AI funding, with exemptions for child safety and likeness protections, as outlined in the draft amendment.
  • The U.S. Senate removed the AI moratorium from President Trump's $3.3 trillion bill, sending it back to the House for further consideration.
  • More broadly, the failed deal highlights deep divisions between states' rights advocates and federal oversight efforts, signaling potential for Congress to reassert control over AI regulation.
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Engadget broke the news in United States on Monday, June 30, 2025.
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