Senate Parliamentarian Approves Cruz AI Moratorium Rewrite Amid Bipartisan Opposition

Senator Ted Cruz (R-TX) is leading efforts to include a provision in the Senate reconciliation package that would impose a 10-year moratorium on state-level AI regulations by conditioning federal broadband funding on states' compliance. The Senate parliamentarian initially approved the provision but later requested a rewrite due to concerns that it might violate the Senate's Byrd Rule, which restricts reconciliation measures to budget-related content. The revised proposal would allow the Department of Commerce to withhold or claw back billions in broadband funds from states that enforce AI regulations, raising concerns about state sovereignty and the ability to regulate areas like online safety and data privacy. Critics argue that the moratorium could undermine state authority, while supporters emphasize its importance for advancing President Trump's AI and infrastructure agenda. The provision remains contentious within the Senate, with opposition from some Republicans and Democrats, and its final inclusion in the reconciliation package is still uncertain. The dispute highlights the political and procedural complexities of regulating AI at the federal level amid competing interests over technology, funding, and state rights.