U.S. Senate Votes to Remove Federal Ban on State Regulation of Artificial Intelligence

U.S. Senate Votes to Remove Federal Ban on State Regulation of Artificial Intelligence

Senate overwhelmingly supports amendment to allow states to regulate AI, striking the  Trump-era 10-year moratorium

In a decisive move, the Republican-led U.S. Senate voted 99-1 on Tuesday to eliminate a 10-year federal ban on state regulation of artificial intelligence (AI), signalling growing bipartisan support for state-level oversight of emerging technologies.

The vote took place during a legislative marathon known as a “vote-a-rama,” in which lawmakers debated and proposed multiple amendments to President Donald Trump’s sweeping tax-cut and spending bill.

Key Amendment Removes AI State Regulation Ban

The measure to remove the moratorium was introduced by Republican Senator Marsha Blackburn of Tennessee. Her AI regulation amendment struck down a provision in the Senate’s version of the bill that would have barred states from regulating AI for a decade.

The final tally:

  • 99 in favour
  • 1 opposed – Republican Senator Thom Tillis of North Carolina was the sole dissenting vote.

Why the Ban Was Controversial

The initial ban aimed to centralise AI regulation at the federal level and would have disqualified states from accessing a proposed $500 million federal AI infrastructure fund if they pursued independent regulations. Major AI companies like Google (Alphabet) and OpenAI had supported federal preemption, citing the need for uniform standards to avoid a patchwork of conflicting state laws that could stifle innovation.

Blackburn Withdraws Support for AI Compromise

A day before the vote, Senator Blackburn had agreed to a compromise amendment with Senate Commerce Committee Chair Ted Cruz, which would have shortened the ban to five years and allowed limited state intervention — specifically in areas like voice protection for artists and child online safety, as long as it didn’t impose an “undue or disproportionate burden” on AI development.

However, Blackburn ultimately reversed her support for the compromise before the final vote, advocating for broader state authority:

“The current language is not acceptable to those who need these protections the most,” said Blackburn in a statement.
“Until Congress passes federally preemptive legislation like the Kids Online Safety Act and a comprehensive online privacy framework, we can’t block states from making laws that protect their citizens.”

Implications for AI Regulation in the U.S.

The Senate’s decision opens the door for individual states to craft their own AI legislation, potentially addressing concerns over:

  • Voice and likeness protection
  • Data privacy
  • Child and teen online safety
  • AI-generated content transparency

This marks a significant shift in the AI regulation landscape in the United States, where federal lawmakers have been slow to pass comprehensive legislation, and states like California, Texas, and New York have begun proposing their own AI bills.

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