Senate Nixes Trump’s State AI Regulation Ban in Sweeping Bill

The US Senate has decisively voted to eliminate a 10-year federal moratorium that would have prevented states from regulating artificial intelligence. This move comes as part of a larger legislative effort involving President Trump’s extensive tax-cut and spending bill. The overwhelming bipartisan vote, 99-1, signals a significant shift in the approach to AI governance at the state level.
Senator Marsha Blackburn, a Republican, successfully introduced the amendment to strike the controversial ban. This action unfolded during a protracted “vote-a-rama” session, a procedural period where numerous amendments are considered for major legislation. The Senate’s decision opens the door for states to develop their own AI regulations without federal restrictions.
Previously, the Senate’s of Trump’s bill would have only penalized states with AI regulations by withholding access to a new $500 million fund intended for AI infrastructure development. This earlier proposal was seen by some as a less direct but still impactful way to discourage state-level oversight. The complete removal of the ban, however, grants states full autonomy in this critical area.
Major players in the AI industry, including tech giants like Google and OpenAI, have previously advocated for federal preemption, preferring a unified national framework over a patchwork of state-specific rules. Their argument centered on the idea that diverse state regulations could stifle innovation. However, Senator Blackburn and others argued for the necessity of state-level protections in the absence of comprehensive federal legislation.