US Senate strikes AI regulation ban from Trump megabill

In a significant move, the Republican-led U.S. Senate voted 99-1 on Tuesday to remove a proposed 10-year federal ban on state regulation of artificial intelligence (AI) from President Trump’s sweeping tax-cut and spending package.

The decision came during a high-stakes “vote-a-rama” session, where lawmakers rapidly considered multiple amendments to the bill. Republican Senator Marsha Blackburn led the amendment to strike the moratorium, reversing a provision that would have barred states from regulating AI for a decade.

Senator Thom Tillis was the sole dissenting vote. The broader tax bill later passed narrowly, with Vice President breaking a 50-50 tie.

Initially, the legislation would have restricted states from accessing a new $500 million federal fund for AI infrastructure if they imposed their own AI regulations. Major AI firms, including Google and OpenAI, had supported centralized federal oversight to avoid a fragmented state-by-state regulatory patchwork.

However, Senator Maria Cantwell, top Democrat on the Commerce Committee, welcomed the Senate’s decision, emphasizing the importance of preserving state-level consumer protections against issues like robocalls, deepfakes, and autonomous vehicle safety concerns.

A group of 17 Republican governors had also opposed the moratorium, citing the need for states to protect citizens, particularly children, from the risks of unchecked AI technologies.

Senator Blackburn initially negotiated a compromise with Commerce Committee Chair Ted Cruz to reduce the moratorium to five years, with exemptions for child safety and artist protections. But she later withdrew her support, asserting:

“Until Congress passes strong, comprehensive federal legislation like the Kids Online Safety Act and a national online privacy framework, we cannot block states from enacting laws to safeguard their citizens,” said Blackburn.

The amendment’s approval marks a pivotal step in ongoing debates over AI governance in the U.S., setting the stage for future state and federal regulatory action.

Source: Reuters

Voice of Osiz

We strongly believe that lifting the AI regulation moratorium is a progressive move. Blanket restrictions should never stifle innovation, but responsible, localized oversight is essential to address evolving AI risks. Balancing federal guidance with state-level protections ensures both technological growth and public safety. We welcome this decision as a step toward smarter, more adaptive AI governance in the U.S.