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Senate Republicans Reach Deal on Five-Year State AI Regulation Freeze

  • In spring 2025, senators agreed on a five-year federal pause on state AI regulations, linking compliance to eligibility for $500 million designated for AI infrastructure and deployment.
  • This compromise followed initial proposals for a 10-year ban that threatened existing state laws and linked $42 billion broadband funding to compliance.
  • The moratorium allows states to regulate child online safety and artists' rights if these rules do not impose undue burdens on AI development.
  • Seventeen Republican governors warned the Senate to drop the plan, and critics called it a "dangerous regulatory vacuum," fearing reduced oversight on harmful AI.
  • The deal highlights the urgent need for a pragmatic federal AI policy amid rapid tech growth and fragmented state regulations slowing innovation.
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The Texas Tribune broke the news in Austin, United States on Friday, June 27, 2025.
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