Senate Removes AI Preemption from Trump Spending Bill

The U.S. Senate voted 99-1 to remove a provision from President Trump's major tax and spending bill that would have imposed a 10-year federal ban on state regulation of artificial intelligence, later amended to five years with some exceptions. The measure, tied to billions in federal broadband funding, faced bipartisan opposition from lawmakers, state officials, and advocacy organizations who argued it would undermine states' ability to address AI-related harms such as deepfakes and consumer privacy. Public backlash included tens of thousands of petition signatures and strong objections from groups like Consumer Reports, the Teamsters, and the NAACP. The Senate's move is viewed as a rebuke to Big Tech and a victory for consumer protection and state rights. The decision also triggered a downturn in AI-related cryptoassets, reflecting the broad market impact. The outcome highlights both frustration with the lack of federal AI regulation and the vital role of state-level innovation amid fast-evolving AI risks.