AI provision in 'Big Beautiful Bill' scrapped by a vote of 99-1
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State and local lawmakers and AI safety advocates argued that the rule was a gift to an industry that wants to avoid accountability for its products.

WASHINGTON — A plan aimed at preventing states from implementing regulations on artificial intelligence for a period of ten years was decisively rejected by the U.S. Senate on Tuesday. This action successfully blocked an effort to incorporate the measure into President Donald Trump’s significant tax cut and spending legislation.

The Senate almost unanimously decided, with a 99-1 vote, to remove the AI-related clause from the bill. This decision followed weeks of backlash from both Republican and Democratic governors along with state officials.

Initially introduced as a decade-long restriction on state-imposed AI regulations, the proposal was eventually linked to federal funding. This meant that only states willing to forgo AI regulations would qualify for subsidies aimed at broadband internet and AI-related infrastructure.

A last-ditch Republican effort to save the provision would have reduced the time frame to five years and sought to exempt some favored AI laws, such as those protecting children or country music performers from harmful AI tools.

But that effort was abandoned when Sen. Marsha Blackburn, a Tennessee Republican, teamed up with Democratic Sen. Maria Cantwell of Washington on Monday night to introduce an amendment to strike the entire proposal. Voting on the amendment happened after 4 a.m. Tuesday as part of an overnight session as Republican leaders sought to secure support for the tax cut bill while fending off other proposed amendments, mostly from Democrats trying to defeat the package.

Proponents of an AI moratorium had argued that a patchwork of state and local AI laws is hindering progress in the AI industry and the ability of U.S. firms to compete with China.

Some prominent tech leaders welcomed the idea after Republican Sen. Ted Cruz of Texas, who leads the Senate Commerce committee, floated it at a hearing in May.

But state and local lawmakers and AI safety advocates argued that the rule is a gift to an industry that wants to avoid accountability for its products. Led by Arkansas Gov. Sarah Huckabee Sanders, a majority of GOP governors sent a letter to Congress opposing it.

Also appealing to lawmakers to strike the provision was a group of parents of children who have died as a result of online harms.

O’Brien reported from Providence, Rhode Island.

Copyright 2025 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.     

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