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Senate Strips Decade-Long Ban on State AI Regulation in Trump Bill

Senate’s 99-1 vote to strip a decade-long ban preserves state oversight under the budget reconciliation bill, fueling calls for a unified federal AI framework.

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Sen. Marsha Blackburn, R-Tenn., walks to board a bus to the White House with other Senate Republicans for a meeting with President Donald Trump on his spending and tax bill, Wednesday, June 4, 2025, outside the U.S. Capitol in Washington. (AP Photo/Julia Demaree Nikhinson)
California’s bill would require human oversight when it comes to promoting, demoting, disciplining, or firing workers.

Overview

  • The Senate voted 99-1 on July 2 to remove the 10-year moratorium on state AI regulation from President Trump’s budget reconciliation bill.
  • Sen. Marsha Blackburn teamed up with Sen. Maria Cantwell to lead a bipartisan amendment that secured overwhelming support for restoring state authority.
  • The decision defied backing from Silicon Valley executives and White House tech advisors who had warned against a patchwork of state rules.
  • Over 20 states have enacted or proposed AI measures addressing deepfakes, algorithmic bias and children’s online safety, highlighting local efforts to manage the technology.
  • Lawmakers and advocacy groups are now urging Congress to draft comprehensive federal AI legislation that harmonizes diverse state frameworks.