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Senate strikes AI provision from the Republican tax bill after uproar

24 SevenBy 24 SevenJuly 1, 20252 Mins Read
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WASHINGTON (AP) — A proposal to deter states from regulating artificial intelligence for a decade was soundly defeated in the U.S. Senate on Tuesday, thwarting attempts to insert the measure into President Donald Trump’s big bill of tax breaks and spending cuts.

The Senate voted 99-1 to strike the AI provision for the legislation after weeks of criticism from both Republican and Democratic governors and state officials.

Originally proposed as a 10-year ban on states doing anything to regulate AI, lawmakers later tied it to federal funding so that only states that backed off on AI regulations would be able to get subsidies for broadband internet or AI infrastructure.

A last-ditch Republican effort to save the provision would have reduced the time frame to five years and sought to exempt some favored AI laws, such as those protecting children or country music performers from harmful AI tools.

But that effort was abandoned when Sen. Marsha Blackburn, a Tennessee Republican, teamed up with Democratic Sen. Maria Cantwell of Washington on Monday night to introduce an amendment to strike the entire proposal. Voting on the amendment happened after 4 a.m. Wednesday as part of an overnight session as Republican leaders sought to secure support for the tax cut bill while fending off other proposed amendments, mostly from Democrats trying to defeat the package.

Proponents of an AI moratorium had argued that a patchwork of state and local AI laws is hindering progress in the AI industry and the ability of U.S. firms to compete with China.

Some prominent tech leaders welcomed the idea after Republican Sen. Ted Cruz of Texas, who leads the Senate Commerce committee, floated it at a hearing in May.

But state and local lawmakers and AI safety advocates argued that the rule is a gift to an industry that wants to avoid accountability for its products. Led by Arkansas Gov. Sarah Huckabee Sanders, a majority of GOP governors sent a letter to Congress opposing it.

Also appealing to lawmakers to strike the provision was a group of parents of children who have died as a result of online harms.

—-

O’Brien reported from Providence, Rhode Island.



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