A proposed 10-year federal moratorium on state regulation of artificial intelligence, a key component of President Trump’s “big beautiful bill,” has been resoundingly struck down by the U.S. Senate. The 99-1 vote on Tuesday signals a clear rejection of a top-down federal approach, empowering states to take the lead on AI governance.
Republican Senator Marsha Blackburn successfully introduced the amendment to remove the controversial ban during a lengthy “vote-a-rama” session. This legislative maneuver demonstrates a strong desire among senators to ensure states have the flexibility to address the rapidly evolving challenges posed by AI, especially in the absence of comprehensive federal legislation.
The original Senate of the bill had a softer impact, merely making states with AI regulations ineligible for a new $500 million fund designed to support AI infrastructure. The complete elimination of the ban, however, provides states with full autonomy, removing any federal restrictions or financial disincentives to developing their own AI policies.
Despite the preferences of major AI companies like Google and OpenAI for a unified federal framework to foster innovation, Senator Blackburn argued for the immediate necessity of state-level safeguards. She unequivocally stated that “Until Congress passes federally preemptive legislation like the Kids Online Safety Act and an online privacy framework, we can’t block states from making laws that protect their citizens.”
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