Senate Defies Trump, Scraps AI Regulation Moratorium

The U.S. Senate, in a striking move, has voted overwhelmingly to eliminate a 10-year federal moratorium on state artificial intelligence regulation from President Trump’s comprehensive tax and spending bill. The 99-1 vote during a “vote-a-rama” session demonstrates a significant departure from the initial legislative intent, empowering states to take a more active role in shaping AI policy.
Republican Senator Marsha Blackburn spearheaded the successful amendment to remove the controversial ban. This action came amidst a flurry of legislative activity as lawmakers sought to refine the expansive bill. The outcome reflects a prevailing sentiment that, in the absence of robust federal frameworks, states should not be hindered in their efforts to address the societal implications of AI.
The initial language in the Senate’s of Trump’s bill was less absolute, merely making states with AI regulations ineligible for a new $500 million fund dedicated to AI infrastructure. The outright removal of the moratorium, however, signifies a complete reversal, allowing states to pursue AI regulation without any federal disincentives. This grants states full authority to legislate on AI matters.
While tech giants like Alphabet’s Google and OpenAI have publicly favored federal AI regulation to streamline innovation, Senator Blackburn emphasized the urgency of state action. She asserted that “The current language is not acceptable to those who need these protections the most,” and that states must be free to enact laws protecting their citizens until Congress passes comprehensive federal legislation.