TL;DR
- A Senate Republican proposal seeks to block state-level AI regulations for the next 10 years.
- The moratorium would penalize states by withholding federal broadband funding if they enforce AI rules.
- The Senate Parliamentarian approved the clause under budget rules, allowing it to bypass a filibuster.
- GOP lawmakers remain divided, with figures like Marsha Blackburn and Marjorie Taylor Greene opposing it.
- Critics warn the move could create a regulatory vacuum in AI oversight without federal replacement measures.
Senate Republicans Advance AI Preemption Measure
A controversial proposal to block states from enforcing AI regulations for the next decade passed a major procedural milestone in the U.S. Senate on Saturday. The move, part of a broader Republican legislative package known as the “One Big, Beautiful Bill”, aims to consolidate national authority over artificial intelligence policy.
The provision, authored and revised by Senate Commerce Chair Ted Cruz, was designed to comply with the Senate’s budget reconciliation rules by linking state compliance to federal broadband funding. The Senate Parliamentarian has ruled the clause does not violate the Byrd Rule, clearing the path for a simple majority vote—without needing support from Democrats or risking a filibuster.
GOP Division Over State Rights
Despite its procedural clearance, the bill faces internal Republican resistance.
Senator Marsha Blackburn of Tennessee voiced her concern, stating:
“We do not need a moratorium that would prohibit our states from stepping up and protecting citizens in their state.”
Meanwhile, Rep. Marjorie Taylor Greene called the provision a “violation of state rights,” urging the Senate to strip it out of the final bill.
Still, House Speaker Mike Johnson defended the moratorium, pointing to President Donald Trump’s support and framing the issue as one of national security:
“We have to be careful not to have 50 different states regulating AI.”
Federal vs. State AI Legislation
| Legislative Body | Position on AI Moratorium | Notable Figures |
| U.S. Senate (GOP) | Advancing moratorium via budget rules | Sen. Ted Cruz, Sen. Marsha Blackburn |
| House GOP | Included moratorium in passed bill | Rep. Mike Johnson, Rep. MT Greene |
| President Trump | Supports federal AI preemption | Endorsed broadband-linked moratorium |
| AI Advocacy Groups | Oppose moratorium, warn of regulatory gaps | Americans for Responsible Innovation (source) |
Advocates Warn of Regulatory Vacuum
AI watchdog groups have criticized the moratorium for potentially eliminating local oversight without offering federal alternatives.
According to Americans for Responsible Innovation, the clause could:
- Invalidate existing state-level AI laws (e.g. on deepfakes, transparency).
- Prevent future consumer protection bills related to algorithms and automation.
- Leave a regulatory vacuum as the federal government has yet to pass comprehensive AI legislation.
The group warned:
“The proposal’s broad language could potentially sweep away a wide range of public interest legislation… without offering federal alternatives to replace the eliminated state-level guardrails.”
States Already Moving Ahead with AI Rules
Despite federal preemption efforts, several states are forging ahead with their own AI governance strategies:
- California: Governor Gavin Newsom vetoed a sweeping AI safety bill in 2024 but signed smaller laws targeting deepfakes and data privacy.
- New York: A pending AI safety bill passed by state lawmakers awaits Governor Kathy Hochul’s signature.
- Utah: Passed regulations mandating AI transparency in automated systems.
Political Motives and Federal Power Consolidation
The provision’s link to federal broadband funding signals a tactical move to compel state compliance via budgetary levers. It marks one of the first major attempts to nationalize AI policy and avoid the kind of patchwork regulation that has characterized tech governance in sectors like data privacy or autonomous vehicles.
Critics, however, argue that the federal government is not yet ready to provide a viable replacement. With no comprehensive AI legislation currently in place at the federal level, opponents warn that the moratorium could freeze progress just as the AI industry explodes.
Conclusion
The Senate’s advancement of an AI regulation moratorium marks a pivotal moment in the federal vs. state tech policy divide. While supporters, including Trump and key Republican lawmakers, claim that centralized rules are vital for national security and innovation, detractors warn the measure could undermine state sovereignty and consumer protection.Whether this provision becomes law now depends on internal Republican consensus and the reconciliation process with the House. But the outcome could define who gets to govern the future of AI in the United States—states, or Washington, D.C.
