US Senate Removes Controversial AI Moratorium from Budget Bill with Overwhelming Majority
Jul 1, 2025

US Senate Removes Controversial AI Moratorium from Budget Bill with Overwhelming Majority

AI-summarised brief · reviewed before publication

US senators have voted almost unanimously to remove a contentious provision from the Trump administration's reconciliation bill, which would have imposed a 10-year ban on states' abilities to regulate artificial intelligence (AI). The provision, introduced by Senator Ted Cruz (R-TX), was met with opposition from both Democrats and Republicans, who cautioned that the ban would harm consumers and allow powerful AI companies to operate with minimal oversight. Many prominent Silicon Valley executives, including OpenAI's Sam Altman, Anduril's Palmer Luckey, and a16z's Marc Andreessen, had voiced their support for the so-called "AI moratorium," arguing that it would prevent states from creating a patchwork of regulations that could stifle AI innovation. However, critics contended that the ban would be detrimental to consumers and would allow AI companies to operate without sufficient accountability. Senator Marsha Blackburn (R-TN) initially opposed the provision and offered an amendment to remove it, alongside Senator Maria Cantwell (D-WA). Blackburn had previously reached a compromise with Cruz to shorten the proposed ban from 10 years to 5 years, but ultimately pulled her support for the provision entirely on Monday. The Senate voted 99-1 to strip the AI moratorium from the budget bill, marking a significant victory for those who opposed the provision. The outcome is seen as a bipartisan issue, with both Democrats and Republicans united in their opposition to the ban on state regulation of AI.