Wednesday, July 2, 2025

US Senate Drops Plan to Ban State AI Laws

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US Senate Votes to Remove AI Moratorium

The US Senate has made a significant decision, voting overwhelmingly to remove a moratorium on states regulating AI systems from a Republican bill. This vote was the result of a prolonged debate over the omnibus budget bill, which is still under discussion. The Senate voted 99 to 1 in favor of dropping the proposal, with only one senator opposing the move.

Background of the Moratorium

The moratorium was initially included in the bill to prevent a patchwork of state AI regulations that could hinder industry growth. However, the plan was met with opposition from the start, particularly from senators who felt it would limit states’ ability to protect their citizens from the potential abuses of AI. Senator Marsha Blackburn was one of the first to oppose the moratorium, and her concerns were shared by several other senators, including Senator Ted Cruz.

Attempts to Revise the Moratorium

Over the weekend, Senator Blackburn struck a deal with Senator Cruz to revise the moratorium, limiting it to five years and allowing states to continue enforcing AI laws related to online child safety and individuals’ names, images, and likenesses. However, this compromise was met with backlash from the populist right, and Senator Blackburn ultimately decided to support a Democrat-sponsored amendment to remove the moratorium altogether.

Senator Blackburn’s Statement

Senator Blackburn released a statement explaining her decision, saying, "While I appreciate Chairman Cruz’s efforts to find acceptable language that allows states to protect their citizens from the abuses of AI, the current language is not acceptable to those who need those provisions the most. This provision could allow Big Tech to continue to exploit kids, creators, and conservatives."

Senate Vote and Outcome

The Senate vote to remove the moratorium was nearly unanimous, with only Senator Thom Tillis opposing the move. The decision reflects the growing concern among lawmakers about the potential risks and consequences of AI and the need for states to have the ability to regulate these systems. The budget reconciliation vote is still pending, and the bill will need to be passed by the House of Representatives before it can be sent to President Donald Trump’s desk.

Opposition to the Moratorium

The moratorium was opposed by a wide range of groups and individuals, including state attorneys general, governors, and conservative commentators. Many argued that the bill’s definition of "AI" was too broad and could be used to ban entire categories of software and internet-related regulations, including online child safety laws. Others contended that the moratorium would limit states’ ability to protect their citizens and give too much power to Big Tech companies.

Conclusion

The US Senate’s decision to remove the AI moratorium from the Republican bill is a significant development in the ongoing debate about the regulation of AI systems. The vote reflects the growing concern among lawmakers about the potential risks and consequences of AI and the need for states to have the ability to regulate these systems. As the bill continues to make its way through the legislative process, it will be important to monitor the ongoing debate and ensure that any regulations put in place are effective in protecting citizens while also allowing for the continued development and growth of the AI industry.

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