The US Senate voted 99-1 early Tuesday morning to eradicate a proposed federal moratorium that may have blocked states from regulating synthetic intelligence for as much as 10 years. The last-minute reversal dealt a big blow to Big Tech lobbyists and marked a decisive win for state rights and client advocates.
The vote got here throughout a marathon “vote-a-rama” session held within the early hours of Tuesday as lawmakers rushed by means of a pile of amendments to President Donald Trump’s large tax and spending bundle, dubbed the “One Big Beautiful Bill Act.“
The controversial provision would have barred states from passing or implementing AI-related legal guidelines for a decade. The thought, initially pushed by Sen. Ted Cruz (R-TX), was designed to stop what supporters known as a “patchwork” of conflicting rules that, of their view, may stifle innovation and competitiveness, particularly in opposition to international rivals like China.
But after weeks of mounting stress, the Senate moved decisively to strike it.
Sen. Marsha Blackburn (R-TN), who had helped craft a last-minute compromise to shorten the ban to 5 years and permit some exemptions, ended up main the cost to take away the availability totally.
“While I appreciate Chairman Cruz’s efforts … the current language is not acceptable to those who need these protections the most,” Blackburn mentioned in a press release to The Washington Post. “Until Congress passes federally preemptive legislation like the Kids Online Safety Act and an online privacy framework, we can’t block states from making laws that protect their citizens.”
Her modification to delete the moratorium was co-sponsored by Sen. Maria Cantwell (D-WA) and finally obtained help from each senator besides Thom Tillis (R-NC), who voted to retain the ban.
Tech business’s hopes crushed
The AI moratorium had gained vital backing from main tech figures and companies. OpenAI CEO Sam Altman, talking to Cruz at a Senate listening to in May, mentioned, “It is very difficult to imagine us figuring out how to comply with 50 different sets of regulation.”
Executives equivalent to Palmer Luckey and Marc Andreessen additionally supported the federal ban, warning that state-by-state guidelines may hinder AI innovation and provides China a aggressive edge. However, their arguments didn’t sway the Senate.
The collapse of the moratorium has energized efforts to create a federal AI regulatory framework, however with extra enter from states and client advocates.
“The Senate came together tonight to say that we can’t just run over good state consumer protection laws,” mentioned Cantwell, as quoted in The Washington Post. “This also allows us to work together nationally to provide a new federal framework on artificial intelligence that accelerates US leadership in AI while still protecting consumers.”







