A proposal to block U.S. states from regulating artificial intelligence for the next decade was overwhelmingly rejected by the Senate on Tuesday. The provision, initially attached to former President Donald Trump’s sweeping bill of tax breaks and spending cuts, faced bipartisan opposition and was struck down with a 99-1 vote.
The measure originally sought to impose a 10-year ban on state-level AI regulation. Later revisions tried to tie it to federal funding—only states that agreed to hold back on regulating AI would qualify for subsidies related to broadband and AI infrastructure.
A final attempt by Republicans to salvage the plan involved shortening the ban to five years and adding exceptions for some AI laws, like those aimed at protecting children or performers. But this compromise also failed after Republican Senator Marsha Blackburn of Tennessee joined Democratic Senator Maria Cantwell of Washington to propose an amendment that eliminated the measure entirely.
Speaking on the Senate floor, Blackburn expressed frustration over Congress’s inability to address fast-evolving technology issues, including AI and online privacy. “Our states are the ones taking action to protect children, artists, and creators in the digital space,” she said.
The vote took place during an early-morning session as Senate Republicans attempted to secure final support for Trump’s tax plan while fending off various Democratic amendments.
Supporters of the moratorium had argued that inconsistent AI laws across states were stifling innovation and making it difficult for U.S. companies to compete with China. Tech leaders, including OpenAI CEO Sam Altman, voiced concerns about complying with different regulations in 50 states. “It’s very difficult to imagine managing that,” Altman had said during a Senate hearing in May.
However, critics viewed the proposal as a giveaway to the tech industry, which they say is trying to dodge accountability. Led by Arkansas Governor Sarah Huckabee Sanders, many Republican governors publicly opposed the measure. Sanders praised Blackburn for “leading the charge” to protect states’ rights, calling the Senate vote a “monumental win for Republican governors and the American people.”
Parents of children harmed by online content also urged lawmakers to remove the moratorium. Megan Garcia, a Florida mother who lost her 14-year-old son to suicide allegedly influenced by an AI chatbot, warned that without regulations, companies would have free rein to develop dangerous products without accountability.
Senator Ted Cruz of Texas, who leads the Senate Commerce Committee, had pushed for the moratorium and tried to negotiate a last-minute compromise. The proposed revisions included protections for child safety and support for Tennessee’s ELVIS Act, which limits AI tools from mimicking artists’ voices without consent.
Cruz claimed the compromise could have passed if Blackburn had supported it. “President Trump thought it was a terrific agreement,” Cruz said. He blamed outside opposition groups—including Democratic officials, unions, and advocacy groups—for derailing the proposal, although many Republican state leaders also opposed it.
Ultimately, even Cruz voted to eliminate the provision. The only senator to vote in favor of keeping it was Thom Tillis of North Carolina, who opposed Trump’s broader budget bill.
Jim Steyer, CEO of Common Sense Media, praised the outcome, stating, “The proposed ban would have stripped states of their ability to protect their residents, while offering no federal protections in return. In the end, nearly the entire Senate rejected it.”
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