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

  • On June 30, 2025, the Senate is poised to pass a measure blocking states from enforcing AI laws if they accept $500 million in broadband funds.
  • Cruz's provision in the bill aimed to prevent a patchwork of state AI laws, citing national security and US competitiveness concerns, leading to a federal moratorium.
  • Major tech firms like Microsoft, Meta, and venture firm Andreessen Horowitz back the proposal, which now includes carve-outs for child safety and copyright, reducing the moratorium from ten to five years.
  • Critics call the five-year moratorium a gift to Big Tech, but the compromise secures Senate support tied to $500 million in broadband funds.
  • If enacted, the moratorium would expire in 2036, establishing the first federal AI governance framework and potentially shaping the global AI race for a decade.
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The Texas Tribune broke the news in Austin, United States on Friday, June 27, 2025.
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