Congress Dropped a Plan to Block State AI Rules. Why That Matters for Consumers
- Early Tuesday, the U.S. Senate voted 99-1 to strike from President Trump's budget a measure that would have blocked states from regulating artificial intelligence for a decade.
- Senator Ted Cruz had pushed for the moratorium to create a national AI framework, but the provision faced immediate and growing opposition including from Senator Marsha Blackburn.
- Critics argued that state consumer protection laws are essential to guard against AI risks like deepfakes and deceptive practices, noting that no substantive federal AI standard currently exists.
- Several voices called the vote a big victory for states, with endorsements highlighting over 260 state legislators' support to maintain critical AI guardrails amid a global race with China.
- Removing the moratorium preserves states' regulatory autonomy but the debate on balancing innovation and consumer protection will likely continue as Congress seeks a clear federal AI standard.
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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