Republicans scrap deal in ‘big, beautiful bill’ to lower restrictions on states’ AI regulations

A deal that had been brokered between Sens. Marsha Blackburn, R-Tenn., and Ted Cruz, R-Texas, regarding state regulations on artificial intelligence has been removed from President Donald Trump’s proposed legislation. The agreement would have required states to refrain from implementing new regulations on AI for a period of five years in order to access funding for AI infrastructure projects. This compromise had been reduced from the original 10-year moratorium.

The deal also included provisions to regulate issues such as child sexual abuse material, unauthorized use of a person’s likeness, and other deceptive practices. However, Blackburn announced on Monday night that she is withdrawing her support for the agreement, citing concerns that the current language could allow Big Tech companies to exploit children, creators, and conservatives.

Blackburn emphasized the need for federally preemptive legislation, such as the Kids Online Safety Act and an online privacy framework, before blocking states from enacting laws to protect their citizens. While Cruz acknowledged Blackburn’s decision to pull her support, he indicated that the situation is still evolving.

In response to the scrapped deal, Blackburn is now co-sponsoring an amendment with Sen. Maria Cantwell, D-Wash., to completely remove the AI moratorium from the bill. Cantwell had criticized the previous agreement as being a giveaway to tech companies and likened it to “Section 230 on steroids.”

Republican governors and House members have also raised concerns about the 10-year ban on state AI regulation, with some calling for it to be completely eliminated. They argue that AI technology is already deeply integrated into society and industry, and the lack of regulations poses risks to safety and fairness.

As the debate over AI regulations continues, it is clear that there are differing opinions among lawmakers about the best approach to govern this rapidly evolving technology. The future of AI regulation remains uncertain as legislators work to find a balance between innovation and protecting the public interest.