State AI Regulation Moratorium Passes Senate Approval

dome of California State Capitol Building, Sacramento dome of California State Capitol Building, Sacramento

Republicans push bill blocking states from regulating AI for a decade

A GOP-backed rule that blocks states from enforcing AI laws cleared a major Senate hurdle Saturday. The plan, rewritten by Senate Commerce Chair Ted Cruz, threatens to cut federal broadband funding to states that try to regulate AI in the next 10 years.

The Senate Parliamentarian ruled the provision won’t face the Byrd rule, meaning it can pass in the “One Big, Beautiful Bill” with a simple majority—no Democrat votes or filibuster needed.

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But GOP support isn’t solid. Tennessee Senator Marsha Blackburn slammed the moratorium:

“We do not need a moratorium that would prohibit our states from stepping up and protecting citizens in their state.”

In the House, far-right Rep. Marjorie Taylor Greene also opposed the ban, calling it a “violation of state rights” that must be stripped out in the Senate.

House Speaker Mike Johnson defended the freeze, citing former President Trump’s backing and warning about a patchwork of AI laws risking national security.

“We have to be careful not to have 50 different states regulating AI, because it has national security implications, right?”

Americans for Responsible Innovation, an AI regulation advocacy group, said the moratorium’s broad language could erase vital state AI rules without offering federal replacements. Their report warns of a regulatory void affecting multiple tech areas.

Meanwhile, states keep moving on AI laws. California Governor Gavin Newsom vetoed a major AI safety bill last year but signed smaller rules on privacy and deepfakes. New York awaits Governor Kathy Hochul’s signature on an AI safety bill. Utah has passed its own AI transparency regulations.

This GOP moratorium faces intense pushback at a time states are ramping up AI oversight. Debate heats up as Congress courts the final vote.

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