Overview

• Under the agreement, states cannot enact new AI regulations for five years if they want access to $500 million in federal AI infrastructure and deployment funds.
• Carve-outs are included for state laws addressing unfair or deceptive practices, children’s online safety, child sexual abuse material and publicity rights.
• Senate Parliamentarian Elizabeth MacDonough ruled that the moratorium complies with the Byrd Rule, allowing it to stay in the reconciliation bill.
• The compromise underscores divisions within the GOP between those seeking uniform federal oversight for national security and advocates of states’ autonomy.
• Senators plan to vote on the amended AI provision Monday in a push to finalize the reconciliation package by President Trump’s self-imposed July 4 deadline.