Overview

• The House approved the “Big Beautiful Bill” on May 22 with a provision blocking states from enforcing AI regulations for ten years alongside a $500 million federal AI modernization fund.
• Senate Republicans have asked the parliamentarian to rule on whether the moratorium violates the Byrd Rule’s ban on extraneous policy provisions without revenue changes.
• Senators Marsha Blackburn and Josh Hawley have publicly opposed federal preemption of state AI oversight, citing the need for local consumer protections.
• A recent Echelon Insights poll finds most voters reject a decade-long pause on state AI rules, reflecting concerns over unchecked tech industry power.
• If retained, the clause would invalidate existing state laws such as California’s AI disclosure requirements and Tennessee’s ELVIS Act.