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Senate Debates 10-Year Ban on State AI Regulation in Reconciliation Bill

Tied to federal broadband dollars after a parliamentarian ruling, the moratorium’s fate remains uncertain in the narrowly divided Senate.

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FILE PHOTO: Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
A message reading "AI artificial intelligence," a keyboard and robot hands are seen in this illustration created on January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
Apple iPhone screen with icons of AI apps.

Overview

  • The Senate parliamentarian ruled that the 10-year freeze on state AI rules qualifies for inclusion in the budget reconciliation package and can pass with a simple majority.
  • Sen. Ted Cruz’s amendment links states’ access to BEAD broadband funding to compliance with the moratorium, effectively penalizing any new or existing AI laws.
  • Republican senators including Marsha Blackburn and Josh Hawley have vowed to oppose or amend out the AI ban, arguing it undermines states’ authority.
  • A bipartisan group of state lawmakers and consumer advocates warns that withholding AI oversight endangers public safety, privacy and cooperative federalism.
  • Senate Majority Leader John Thune said a version of the moratorium is likely to survive final negotiations before a Senate floor vote expected ahead of July 4.