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Congress Dropped a Plan to Block State AI Rules. Why That Matters for Consumers
UNITED STATES, JUL 1 – The Senate's 99-1 vote preserves states' authority to regulate AI amid concerns over consumer protections and local control, despite strong tech industry support for the ban.
- The U.S. Senate voted 99-1 early Tuesday morning to remove a 10-year moratorium blocking states from regulating artificial intelligence.
- This moratorium, pushed by Senator Ted Cruz, aimed to create a national AI framework by preventing a patchwork of state laws, but no such federal framework exists yet.
- State opposition grew as more than 260 legislators and 40 attorneys general warned the moratorium would hinder protections against AI harms like deepfakes and algorithmic bias.
- Senator Marsha Blackburn led the amendment to remove the moratorium, acknowledging the need to protect citizens from AI abuses while Cruz’s scaled-back moratorium included exceptions for child safety and likeness rights.
- The vote preserves state autonomy to regulate AI amid rising proposals and suggests ongoing debate over balancing innovation with consumer protections.
18 Articles
18 Articles
Senate votes 99-1 to remove AI moratorium from megabill • Wisconsin Examiner
Republican Sens. Ted Cruz of Texas and Marsha Blackburn of Tennessee, shown here in a June 17, 2025, committee hearing, proposed paring down the moratorium on state-based AI laws included in the budget bill, but the provision still proved unpopular. On Monday, Blackburn cosponsored an amendment to remove the measure. (Photo by Kayla Bartkowski/Getty Images)A moratorium on state-based artificial intelligence laws was struck from the “Big Beautifu…
US Senate kills ban on state AI regulation
US senators on Tuesday killed a proposed ban on states’ ability to regulate artificial intelligence, in a setback for Silicon Valley.The measure was a top priority for tech firms who argued a patchwork of local laws hinders their ability to innovate and compete with China.The senator who had proposed the moratorium backed down during an overnight marathon session of votes on Republicans’ megabill, saying that state laws can help prevent AI deepf…
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