The United States Senate voted 99-1 to strike down the proposed state AI regulation moratorium after 4 a.m. on July 1, 2025, which had originally been included in President Trump's tax cut legislation. The proposal initially sought a 10-year ban on state AI laws, later reduced to 5 years through a June 30, 2025 compromise between Texas Senator Ted Cruz and Tennessee Senator Marsha Blackburn, with exemptions for child safety, online protection measures, and copyright laws, including Tennessee's ELVIS Act that protects musicians' voices and likenesses. The provision would have allocated $500 million in federal funding for AI infrastructure to states that complied with the moratorium, while non-compliant states would have been excluded from this financial support.
The moratorium faced strong resistance from both Republican and Democratic lawmakers, particularly after 17 Republican governors sent a letter to Congress on June 28, 2025, expressing concerns that the proposal threatens to undo all the work states have done to protect our citizens from the misuse of artificial intelligence. Technology leaders, including OpenAI CEO Sam Altman, supported the moratorium, citing difficulties in complying with 50 different regulatory systems, while opponents, including Common Sense Media founder Jim Steyer, argued the ban would prevent states from protecting their residents while offering nothing in return at the federal level. In the final vote, only North Carolina Republican Senator Thom Tillis supported the moratorium, while even Ted Cruz – previously the provision's main advocate – voted to remove the entire proposal.
The debate surrounding the moratorium highlights tensions within the conservative movement regarding tech regulation, as confirmed by Adam Thierer of the conservative think tank R Street Institute. The defeated measure represents a significant victory for states' rights advocates and child safety groups, such as Florida mother Megan Garcia, who sued an AI chatbot maker she claims contributed to her 14-year-old son's suicide. The vote's outcome sent a clear message that Congress is unwilling to restrict states' ability to regulate AI and protect their citizens, particularly children and content creators, from potentially harmful AI applications.
Sources:
Sarah Fielding
Sylvan Lane
Matt Brown, Associated Press
