Republican efforts to block state AI regulations through 2035 could mean a choice for states between imposing AI safeguards or receiving critical federal broadband funding, as Senate Parliamentarian Elizabeth MacDonough clears the controversial provision for inclusion in President Trump’s “One Big Beautiful Bill.”
Key Takeaways
- A Republican-backed provision would prevent states from regulating AI for 10 years while tying compliance to access for federal broadband funding
- The measure, which can be passed with a simple majority through the reconciliation process, has created unusual political alliances with opposition from both parties
- Sen. Ted Cruz modified his original proposal to affect only a $500 million AI fund rather than the entire $42 billion broadband program to gain more support
- Senate Parliamentarian Elizabeth MacDonough ruled on June 21 that the provision can remain in the reconciliation package
- Critics argue the provision undermines states’ rights and removes consumer protections, while supporters claim it prevents overregulation and promotes innovation
The Battle Over State AI Regulation
A contentious provision in President Trump’s “One Big Beautiful Bill” is creating unusual political divisions in Washington as Republicans push to prevent states from regulating artificial intelligence until 2035. The measure, championed by Senator Ted Cruz, would effectively create a decade-long pause on state-level AI regulations by making states that implement such rules ineligible for certain federal broadband funding. The proposal has survived parliamentary scrutiny but faces opposition from an unlikely coalition of conservative and liberal lawmakers concerned about states’ rights and consumer protections.
“History has shown that this light-touch regulatory approach to new technologies has been incredibly successful in promoting American innovation and jobs,” said Senator Ted Cruz, who champions the provision as a way to prevent a patchwork of conflicting state regulations that could hamper AI development in America.
The proposal represents a significant shift in how technology might be regulated in the United States, with Cruz and his allies arguing that a federal standard would be preferable to varied state approaches. The provision has undergone several revisions to gain more support, with the latest version affecting only a $500 million AI fund administered by the Department of Commerce, rather than the entire $42 billion Broadband Equity, Access, and Deployment (BEAD) program as initially proposed.
Cross-Party Opposition Emerges
Despite securing procedural approval, the AI provision faces substantial resistance from lawmakers on both sides of the aisle. Senator Marsha Blackburn, a staunch conservative from Tennessee, has emerged as a leading Republican voice against the measure. Her position highlights the unusual political alignment forming around this issue, with traditional opponents finding common ground in opposing what they see as federal overreach and a giveaway to technology companies.
“We cannot prohibit states across the country from protecting Americans, including the vibrant creative community in Tennessee, from the harms of AI,” said Senator Marsha Blackburn, expressing concerns about removing state-level protections while federal regulations remain undeveloped.
The House Freedom Caucus and other populist conservatives have also voiced opposition to the moratorium, with some warning it could enable censorship of conservative voices online. Mike Davis, a prominent conservative activist, delivered a stark assessment of the proposal’s implications: “This ten-year moratorium in the Big Beautiful Bill gives Big Tech the green light to censor conservatives.”
Procedural Victory But Future Uncertain
On June 21, Senate Parliamentarian Elizabeth MacDonough delivered a significant procedural win for the provision’s supporters when she ruled that the measure could remain in the reconciliation package. This determination means the proposal can advance with a simple majority vote rather than facing the 60-vote threshold typically required for most legislation. Despite this victory, the measure’s ultimate fate remains uncertain as opponents prepare to offer amendments that would strip or modify the provision when the bill reaches the Senate floor.
“Senate Parliamentarian Elizabeth MacDonough announced on June 21 that the Republican-backed measure to put a temporary block on states’ regulation of artificial intelligence (AI) can remain in the One Big Beautiful Bill,” confirming the provision meets the requirements for inclusion in the budget reconciliation process.
Democratic Senator Maria Cantwell has signaled strong opposition, noting that 24 states have already begun regulating AI in various ways. “Now Congress is threatening these laws, which will leave hundreds of millions of Americans vulnerable to AI harm by abolishing those state law protections,” Cantwell warned, highlighting the growing concern that the federal government is moving to dismantle existing consumer protections without offering alternatives.
The Trump Administration’s Position
President Trump’s position on the AI provision remains somewhat ambiguous, though his administration includes both supporters and skeptics of the measure. Vice President JD Vance has reportedly expressed uncertainty about whether the provision will ultimately remain in the final legislation. Meanwhile, David Sacks, one of President Trump’s key advisers on AI policy, has voiced support for the temporary pause as a way to prevent what he terms “AI Doomerism” – overly restrictive regulations based on speculative fears rather than current technological realities.
As the bill advances through the legislative process, Republican senators are carefully weighing the provision’s potential impact on internet grants in their states against concerns about federal overreach. The unusual political alignments forming around this issue – with traditional opponents uniting against perceived special interests – illustrate the complex and evolving politics of technology regulation in the Trump era. The outcome will significantly influence how AI development and governance unfold across America over the next decade.
