Overview

• The House version of the One Big Beautiful Bill Act bars states and localities from regulating AI for ten years, a clause that surprised and divided Republican lawmakers.
• Senate Republicans led by Sen. Ted Cruz have replaced the outright ban with a measure tying federal broadband funding to the absence of state AI rules.
• Rep. Brett Guthrie says the moratorium’s duration will likely be shortened and advocates for adopting a bipartisan federal AI regulatory framework.
• Critics warn a decade-long gag on local AI oversight could expose citizens to unmitigated risks, while supporters argue a single set of rules will promote innovation and consistency.
• The Senate parliamentarian must assess the provision under the Byrd Rule, adding to the uncertainty as senators negotiate revisions.