Senate Kills AI Provision

Senate Kills AI Provision

1 July 2025

The US Senate has rejected a proposal that aimed to restrict individual states from regulating artificial intelligence (AI). The controversial provision was part of a larger tax bill and faced opposition from those who believe tech companies should not be shielded from AI oversight.

The proposed measure sought to establish a five-year pause on state and local enforcement of AI safety regulations. It would have potentially denied states $500 million in federal broadband funding if they enforced their own AI safety laws. Critics argued the provision could extend to a $42.45 billion program. A compromise was reached to reduce the moratorium to five years and allow states to regulate areas like child safety and artist protection, provided it didn't unduly burden AI. Ultimately, the Senate decided to remove the provision entirely, giving states the power to regulate AI within their jurisdictions.

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Published on 1 July 2025
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