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Senate Parliamentarian Demands Rewrite of Cruz’s AI Moratorium in Trump’s Budget Bill

It would condition AI grants on a decade-long ban on state regulations, raising questions about its compatibility with reconciliation rules.

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Overview

  • Sen. Ted Cruz’s revised provision ties a $500 million AI deployment fund to states pausing all AI regulation for 10 years.
  • Senate Parliamentarian Elizabeth MacDonough asked for the AI moratorium language to be rewritten over concerns it may breach Byrd Rule requirements.
  • GOP senators including Marsha Blackburn, Josh Hawley, Rand Paul and Ron Johnson argue the moratorium infringes on states’ rights and existing AI protections.
  • Common Sense Media and other advocacy groups warn that enforcing the moratorium could jeopardize up to $42 billion in federal broadband funding.
  • Senators are preparing floor amendments and a potential vote to strip or amend the AI ban before the reconciliation bill reaches final passage.