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Senate Can Keep Ban on State AI Rules in Trump Tax Bill

  • Earlier this month, the Senate parliamentarian approved a provision in the One Big Beautiful Bill that prevents states from imposing regulations on artificial intelligence for a decade, with potential consequences for federal broadband funding.
  • This provision emerged from Republican efforts using reconciliation to pass the bill by simple majority and avoid a 60-vote threshold, despite some GOP opposition and debate last week before the parliamentarian.
  • Senator Ted Cruz rewrote the AI moratorium to comply with budgetary rules, and supporters say it prevents a patchwork of state laws that could slow AI development and harm national security.
  • Critics including Senators Hawley and Blackburn, Representative Greene, and AI CEO Dario Amodei warn the moratorium violates state rights, risks regulatory gaps, and lacks a federal plan as a backstop.
  • The bill remains controversial and may see amendments to remove the moratorium before final passage, while states continue advancing their own AI regulations despite potential funding penalties.
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T&T broke the news in on Sunday, June 22, 2025.
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