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Senate Parliamentarian Clears Ban on State AI Rules in Budget Bill

The decision intensifies GOP divisions by letting a ten-year state AI regulation ban tied to broadband funding move forward.

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Overview

  • Sen. Ted Cruz rewrote the original moratorium to satisfy the Senate’s Byrd Rule by conditioning BEAD broadband grants on states foregoing AI oversight for ten years
  • The amended provision replaces a blanket moratorium with a funding trigger that bars states from regulating AI if they want federal broadband dollars
  • Republican dissent is growing as Sens. Marsha Blackburn and Ron Johnson and Rep. Marjorie Taylor Greene pledge to oppose any bill containing the ban
  • Speaker Mike Johnson and President Trump back the provision, but fractures run deep enough to jeopardize the bill’s narrow majority in both chambers
  • Sen. Josh Hawley says he may file an amendment during the Senate’s voterama to strip out the AI ban if it is not removed beforehand