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Senate Removes AI Ban for States From GOP Tax Bill

Senate Removes AI Ban for States From GOP Tax Bill/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Senate overwhelmingly voted to remove a GOP proposal banning states from regulating artificial intelligence for a decade. Bipartisan pressure and state leaders’ protests forced the amendment’s removal. Tech leaders and parents’ groups clashed over AI regulation concerns.

Sen. Ted Cruz, R-Texas, stands in an elevator as Republicans begin a final push to advance President Donald Trump’s tax breaks and spending cuts package, at the Capitol in Washington, Monday, June 30, 2025. (AP Photo/Mark Schiefelbein)

Senate AI Ban Rejection Quick Looks

  • Senate votes 99-1 to strike AI regulation ban
  • GOP proposal sought 10-year freeze on state AI laws
  • Provision tied to federal funding for broadband, AI projects
  • Blackburn and Cantwell led bipartisan amendment to remove it
  • State leaders argued ban shields tech firms from accountability
  • Parents of children harmed online urged senators to strike ban
  • Tech industry backed ban to avoid regulatory patchwork
  • Vote occurred amid overnight session on Trump’s tax bill

Deep Look

Senate Overwhelmingly Rejects GOP Proposal To Block State AI Regulations

WASHINGTON (AP) — A controversial measure to block U.S. states from regulating artificial intelligence for a decade was overwhelmingly scrapped by the Senate early Tuesday, following fierce opposition from state leaders, parents’ groups, and bipartisan lawmakers wary of handing tech companies a free pass on AI oversight.

In a striking 99-1 vote, senators struck the AI provision from President Donald Trump’s sweeping tax cuts and spending reductions bill during an overnight session marked by heated debate and last-minute negotiations.

States Push Back Against AI Regulation Ban

Originally drafted as a 10-year moratorium on state-level AI laws, the GOP proposal was later reworked to tie federal broadband and AI infrastructure funding to states agreeing not to regulate AI.

The plan quickly drew bipartisan criticism, particularly from governors who saw it as a federal overreach into state rights and a dangerous concession to powerful tech interests.

Arkansas Governor Sarah Huckabee Sanders spearheaded opposition, joining a majority of Republican governors in a letter urging Congress to reject the measure. State lawmakers and AI safety advocates warned the ban would shield the tech industry from accountability at a time when concerns over AI’s misuse are skyrocketing.

Blackburn, Cantwell Lead Bipartisan Effort

A last-ditch effort by Republicans sought to salvage the measure by reducing the ban from ten years to five and exempting certain types of state-level laws, such as protections for children or artists like country music performers against harmful AI tools.

But that compromise collapsed when Republican Sen. Marsha Blackburn of Tennessee and Democratic Sen. Maria Cantwell of Washington joined forces to introduce an amendment to eliminate the proposal altogether.

“We cannot tie the hands of states who are on the front lines protecting our citizens from the harms of AI,” Cantwell said before the vote.

The Senate acted swiftly, holding the vote just after 4 a.m. Tuesday during an all-night marathon as Republican leaders tried to maintain support for Trump’s tax bill while fending off amendments mostly offered by Democrats.

Tech Industry Split Over AI Rules

Tech industry voices were sharply divided. Some prominent leaders supported the federal preemption, arguing a patchwork of state laws would stifle innovation and make it harder for U.S. companies to compete with China.

Sen. Ted Cruz, the Texas Republican who leads the Senate Commerce Committee, floated the federal ban idea during a hearing in May, earning praise from some AI firms.

But parents of children who died as a result of online harms pleaded with lawmakers to kill the measure, fearing it would block new state laws aimed at protecting kids from dangerous AI-driven content or interactions.

“This is about the lives of our children, not about Big Tech’s bottom line,” said one parent who met with senators privately ahead of the vote.

Next Steps For AI Regulation

With the AI preemption provision gone, states retain their authority to pursue new AI regulations, including laws governing data privacy, deepfake technology, and consumer protections.

While the broader tax bill remains under negotiation, the Senate’s decisive action underscored lawmakers’ increasing skepticism toward blanket protections for tech companies amid rising public alarm about AI’s power and potential risks.



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