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Senate Republicans revise ban on state AI regulations in bid to preserve controversial provision

  • On May 22, the U.S. House approved a comprehensive budget reconciliation package known as the One Big Beautiful Bill Act, which includes a provision imposing a 10-year nationwide ban on state and local regulations of artificial intelligence.
  • The provision emerged amid concerns over a patchwork of state laws hampering innovation and followed debates with some lawmakers unaware of its contents.
  • The Senate proposed an alternative tying federal broadband funding to whether states regulate AI, aiming to preserve the ban while addressing some opposition.
  • A group of 40 state attorneys general from both parties, along with other critics, argue that the moratorium undermines local governance by allowing data centers to be established near residential neighborhoods and by suspending current regulations.
  • The bill's future depends on reconciliation between chambers and possible litigation, while supporters argue it prevents regulatory confusion and fosters national competitiveness.
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The Hill broke the news in Washington, United States on Wednesday, May 28, 2025.
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