Trump’s AI Regulation Ban Overruled by Senate in Tax Bill Vote

In a powerful display of legislative independence, the U.S. Senate has voted to remove a significant provision from President Trump’s “big beautiful bill” – a 10-year federal moratorium on state regulation of artificial intelligence. The Republican-led chamber’s near-unanimous vote, 99-1, underscores a strong desire among lawmakers to allow states more leeway in addressing the complexities of AI.
The crucial amendment, put forth by Republican Senator Marsha Blackburn, successfully struck the ban during a marathon “vote-a-rama” session. This procedural mechanism allowed senators to offer numerous changes to the sweeping tax-cut and spending legislation. The outcome signals a clear rejection of a top-down federal approach to AI governance at this juncture, favoring a more decentralized model.
Prior to this vote, the Senate’s proposed of the bill had a less restrictive impact, only preventing states with AI regulations from accessing a new $500 million fund aimed at supporting AI infrastructure. The complete removal of the ban, however, ensures that states face no federal impediments, financial or otherwise, when considering AI-related legislation. This empowers states to be at the forefront of AI policy development.
This development runs counter to the preferences of major AI firms such as Google and OpenAI, who have voiced support for federal preemption to foster innovation by avoiding a fragmented regulatory landscape. Senator Blackburn, however, maintained that without comprehensive federal protections like the Kids Online Safety Act, states must retain the ability to protect their residents from potential harms associated with AI.