Last-second removal of AI regulation ban proposed by Ted Cruz from the 'Big, Beautiful Bill'
In a significant shift for the tech industry, the Senate has voted to lift a proposed 10-year ban on state-level artificial intelligence (AI) regulations, marking a new era for AI governance in the United States.
The decision, which came in the form of an amendment adopted by a nearly unanimous vote of 99 to 1, signifies a move away from a federal monopoly on AI regulation towards a more decentralized approach. The amendment, proposed by Republican Senator Marsha Blackburn, aims to allow states to enact their own AI-related laws without federal interference.
This development comes as several states, including Colorado, California, and Texas, have already taken steps to regulate AI within their jurisdictions. For instance, Colorado's Artificial Intelligence Act (CAIA) has been enacted, but doubts persist about its timely implementation. California's regulations regarding automated decision-making systems, finalized by the California Civil Rights Council on March 21, 2025, focus on employment contexts and require employers to prove bias testing and maintain records related to AI use. Texas's TRAIGA law, with its emphasis on AI governance and civil rights protections, is seen as a potential national standard.
However, the move towards state-level AI regulations has not been without opposition. White House officials and Big Tech firms have expressed support for a federal ban on state AI regulations, citing reasons such as consistency and simplification, innovation preservation, and the establishment of a national standard.
Despite this opposition, the recent removal of the proposed federal moratorium on state AI regulations from the One Big Beautiful Bill Act suggests that states will continue to play a significant role in shaping AI policy. The provision, which would have prevented states from passing AI legislation if they take federal broadband fund money, received considerable support from Big Tech firms.
Notable figures such as Commerce Secretary Howard Lutnick and White House technology advisers Michael Kratsios and David Sacks have backed the measure, claiming that it is important for national security to prevent states from passing their own AI legislation. However, the decision to ditch the provision is a win for states, as 47 states have already proposed some form of AI-related legislation, and nearly 1 in 5 have already enacted those proposals into law.
Texas Senator Ted Cruz proposed a compromise that would have resulted in a five-year ban and allowed states to regulate a narrow band of issues related to AI, like combating deepfakes of artists. Cruz lamented the decision to kill the restrictions entirely but ultimately voted in favor of striking it entirely.
The future of AI regulation in the United States remains uncertain, with calls for a national-level, comprehensive AI regulation still being made. However, the recent developments suggest a shift towards a more decentralized approach, with states playing a significant role in shaping AI policy.
[1] Source: TechCrunch [2] Source: California Civil Rights Department [3] Source: Texas Tribune [4] Source: The Hill
- The Senate's decision to lift a proposed 10-year ban on state-level artificial intelligence (AI) regulations, as reported by TechCrunch, signifies a move towards a more decentralized approach for AI governance in the United States.
- Several states, such as Colorado, California, and Texas, have already enacted or proposed AI-related laws, as mentioned in articles from the California Civil Rights Department and Texas Tribune.
- The tech industry and White House officials, as reported by The Hill, have expressed opposition to state-level AI regulations, citing reasons like consistency, innovation preservation, and national security.
- Despite this opposition, the future of AI regulation in the United States may lean towards a more decentralized approach, with states playing a significant role, as suggested by recent developments in policy-and-legislation and politics, reported by multiple general news sources.
