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American Focus > Blog > Tech and Science > Moratorium on state AI regulation clears Senate hurdle
Tech and Science

Moratorium on state AI regulation clears Senate hurdle

Last updated: June 22, 2025 11:35 am
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Moratorium on state AI regulation clears Senate hurdle
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Republican Effort to Block State AI Regulations Moves Forward

Over the weekend, a Republican-led initiative aimed at preventing states from implementing their own AI regulations took a significant step forward. The proposed rule, reportedly revised by Senate Commerce Chair Ted Cruz to comply with budgetary guidelines, would withhold federal broadband funding from states that attempt to enforce AI regulations over the next decade.

Following the rewrite, the Senate Parliamentarian has determined that the provision does not fall under the Byrd rule, allowing it to be included in the GOP’s “One Big, Beautiful Bill” and potentially pass with a simple majority, bypassing the need for support from Senate Democrats and avoiding the threat of a filibuster.

Despite this progress, the level of support among Republicans for the moratorium remains uncertain. Senator Marsha Blackburn of Tennessee has expressed reservations, stating, “We do not need a moratorium that would prohibit our states from stepping up and protecting citizens within their state.”

Though the House of Representatives has already approved a version of the bill containing the AI regulation freeze, some conservative members, like Representative Marjorie Taylor Greene, have voiced opposition, citing concerns about states’ rights. However, House Speaker Mike Johnson defended the provision, emphasizing the national security implications of allowing individual states to regulate AI independently.

Critics, including the advocacy group Americans for Responsible Innovation, have raised alarm about the potential consequences of the broad language in the proposal, warning that it could eliminate crucial state-level regulations without providing adequate federal alternatives.

Several states have already begun taking steps to regulate AI, with California vetoing a significant AI safety bill last year while enacting smaller-scale regulations on privacy and deepfake technology. In New York, a similar AI safety bill is awaiting approval from Governor Kathy Hochul, while Utah has already implemented regulations focused on AI transparency.

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