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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.
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Brewminate broke the news in on Monday, June 30, 2025.
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