Republican Rift Sinks Federal AI Regulation In Congress/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ A proposed federal ban on state AI laws collapsed amid deep Republican divisions over Big Tech and states’ rights. Conservative activists and lawmakers feared stifling state-level safeguards against AI risks. The defeat leaves AI regulation to states, as Congress struggles to find consensus.
AI Regulation Clash Quick Look
- GOP leaders tried to ban state AI laws for 10 years
- Conservatives objected, citing Big Tech distrust and states’ rights
- Senate stripped the measure 99-1 from Trump’s tax bill
- Tech firms fear a patchwork of state rules will stifle innovation
- White House shifted to back the bill without the AI provision
- Conservatives want federal guardrails but preserve state protections
- GOP remains split on how best to counter China in AI
- No clear federal AI regulation path ahead in divided Congress
GOP Split Kills Ban on State AI Laws in Trump’s Tax Bill
Deep Look
NEW YORK (AP) — A fierce Republican rift over regulating artificial intelligence helped doom a measure to block states from passing their own AI laws—a provision that nearly made it into President Donald Trump’s sweeping tax and spending bill.
At first, the 10-year federal ban on state AI laws seemed poised for passage as the bill worked through the Senate. But a rapid campaign by conservative activists, Republican governors, lawmakers, and advocacy groups steadily chipped away at support.
Among the most vocal critics was conservative activist Mike Davis, who called the proposal “AI amnesty” for “trillion-dollar Big Tech monopolists.” Davis appeared on Steve Bannon’s right-wing podcast urging viewers to pressure senators. He even texted Trump directly, encouraging him to stay neutral despite strong lobbying from top administration officials like White House AI czar David Sacks and Commerce Secretary Howard Lutnick.
Within the GOP, the fight pitted conservatives wary of Big Tech against others who believe federal uniformity is critical for the U.S. to compete against China in the AI race.
In the end, the anti-Big Tech camp won out. The split highlighted growing Republican distrust of Silicon Valley’s power and a belief that states must retain the freedom to guard residents from emerging technological risks.
“There’s palpable tension in the conservative movement,” said Adam Thierer of the conservative-leaning R Street Institute, who originally floated the AI moratorium idea last year. “The animus toward Big Tech was the differentiating factor.”
Conservative vs. Conservative Showdown
The push to block the moratorium culminated in a bipartisan move late Monday. Republican Sen. Marsha Blackburn of Tennessee, a longtime critic of Big Tech, joined Democratic Sen. Maria Cantwell of Washington in an effort to strip the AI ban from the bill. By Tuesday morning, the Senate voted 99-1 to remove it.
The abrupt reversal frustrated some Republicans who feared the decision would hand China an edge in developing AI technology.
Ryan Fournier, chairman of Students for Trump and a leader at the startup Uncensored AI, had backed the moratorium. He argued that unified national rules are needed to prevent states like California and New York from overregulating AI in ways that could stifle innovation.
“I get it,” Fournier said, acknowledging Republican divisions. “But there needs to be one set of rules, not 50.”
Fears Over Patchwork State Regulations
Big Tech companies, venture capitalists, and numerous Trump administration officials supported the moratorium, warning that letting states craft their own AI rules would burden innovators with a confusing patchwork of regulations.
Commerce Secretary Lutnick said the provision would have ensured American companies could build crucial technologies “without interference from anti-innovation politicians.” AI czar Sacks had also publicly championed the measure.
But after the Senate stripped the proposal, the White House shifted its position. Asked about the moratorium’s removal, Trump said he fully backed the Senate-passed version of the bill.
On the Senate floor, Sen. Ted Cruz lamented that China, liberal politicians, and “radical left-wing groups” would celebrate the moratorium’s defeat. Blackburn countered that the federal government had so far failed to enact laws addressing key AI concerns like child safety and intellectual property.
“But you know who has passed it?” she said. “The states.”
Divided on How to Beat China
Conservatives universally agree that the U.S. must outpace China in AI—but sharply disagree on how. Many Republicans distrust Big Tech over issues like censorship on social media during the COVID-19 pandemic and past elections. They believe tech giants shouldn’t be handed blanket federal protections, especially in high-stakes fields like AI.
Opponents of the moratorium stressed preserving states’ rights, arguing states are better positioned to quickly address potential harms from emerging technologies.
“Many industries navigate regulations across different states already,” said Minnesota state Rep. Eric Lucero, a Republican.
Daniel Cochrane from the Heritage Foundation agreed that while the GOP is united on beating China in AI, “we just have different prescriptions for doing so.”
Others feared the risk of allowing AI to develop unchecked without state oversight.
“We have no idea what AI will be capable of in the next 10 years,” wrote Rep. Marjorie Taylor Greene on X, formerly Twitter. “Giving it free rein and tying states’ hands is potentially dangerous.”
Calls for Federal Standards
Texas state Sen. Angela Paxton was among Republicans urging the removal of the moratorium. She argued that a limited federal framework could clarify AI regulation while leaving room for state action.
Paxton told the AP she favors federal legislation “that sets some clear guardrails” on national security and commerce but preserves state authority over local impacts.
“When it comes to technology as powerful and potentially dangerous as AI,” Paxton said, “we should be cautious about silencing state-level efforts to protect consumers and children.”
The future of federal AI rules remains uncertain. With the moratorium off the table and Republicans holding narrow congressional majorities, it’s unclear whether the party can agree on new national standards to guide AI’s rapid evolution.
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