Senate Removes State AI Regulation Ban From Trump Tax Bill

The U.S. Senate overwhelmingly voted 99-1 to remove a controversial provision from President Donald Trump's tax and spending bill that would have barred states from regulating artificial intelligence (AI) for up to ten years. This provision, strongly supported by major tech firms like Microsoft, Meta, and influential Silicon Valley figures, aimed to prevent a patchwork of state AI laws by enforcing federal preemption tied to funding incentives. However, bipartisan opposition grew among lawmakers, state officials, and advocacy groups concerned about federal overreach and the need for state autonomy to protect consumers and address AI risks. Senator Marsha Blackburn, who initially supported a five-year compromise, ultimately withdrew backing and introduced the amendment to eliminate the moratorium entirely, with Senator Ted Cruz also endorsing the move. The Senate's decision marks a significant victory for state regulatory power and AI accountability advocates, reflecting skepticism toward blanket federal restrictions amid AI's rapid evolution. Lawmakers and stakeholders emphasized the importance of states' roles in governing emerging technologies where federal legislation has historically lagged.