TechCapsules

AI-summarised brief · reviewed before publication

The Senate has removed a provision from the Trump administration's tax bill that would have prevented states from enforcing their own artificial intelligence (AI) regulations for five years. The original proposal, passed by the Senate on Tuesday, included a rule that would have withheld up to $500 million in funding for AI infrastructure if states did not comply with the moratorium. The initial version of the rule had made $42 billion in broadband internet funding dependent on states' compliance with a 10-year ban on AI regulations. However, the Senate voted 99 to one to remove the proposed moratorium on Tuesday, just days after senators had amended the original proposal of a 10-year ban on enforcement to five years. The amended version added exemptions for state laws targeting unfair or deceptive practices and child sexual abuse material (CSAM). If the rule had been passed, it would have prohibited states from enforcing AI legislation for five years, effectively rendering existing laws useless unless states were willing to put their AI funding at risk. This would have created a patchwork imbalance across the country, with some states having thorough legislation but no funding to advance AI safely, while others would have had no regulation but plenty of funding to keep up. The removal of the provision is seen as a victory for state and local governments, which would have the right to protect their residents against harmful technology and hold companies accountable. "State and local governments should have the right to protect their residents against harmful technology and hold the companies responsible to account," said Jonathan Walter, a senior policy adviser at The Leadership Conference's Center for Civil Rights and Technology.