Senate Nixes AI Gag Order: States Free to Police AI

Senate Rejects 10-Year AI Regulation Ban—States Keep Power to Protect Consumers

In a dramatic overnight session on July 1, the U.S. Senate overwhelmingly voted to remove a controversial 10-year moratorium on state-level AI regulation from the GOP’s sweeping Trump agenda bill. The amendment to strike the provision passed 99-1, preserving states’ rights to enact and enforce their own artificial intelligence laws.

What Was at Stake?

The original provision would have prohibited states from regulating AI for a decade. Supporters claimed it would prevent a confusing patchwork of state laws. But opponents warned it would strip states of the ability to protect residents from AI-related harms—like deepfakes, algorithmic bias, and child exploitation—especially as AI technologies advance faster than federal oversight.

Who Led the Opposition?

A bipartisan coalition emerged, led by Senators Marsha Blackburn (R-TN) and Maria Cantwell (D-WA). They argued the moratorium would give Big Tech unchecked power, endanger vulnerable populations, and erode states’ rights. Governors, attorneys general, and child-safety advocates joined the call to scrap the moratorium.

What Happened Next?

After hours of negotiations and compromise proposals—including a failed attempt at a 5-year moratorium—the Senate voted decisively to eliminate the AI restriction altogether. The broader Trump agenda bill then passed on a 50-50 split, with Vice President JD Vance breaking the tie. The bill now returns to the House, where leaders hope to send it to the president by July 4.

Why Does This Matter?

States Retain Control: States remain free to pass AI laws tailored to their communities’ needs.

Big Tech’s Federal Shield Fails: The tech industry’s hopes of a federal preemption collapsed, opening the door to state-driven safeguards.

Innovation vs. Safety Debate Continues: While industry groups argue that a patchwork of laws could stifle innovation, lawmakers sided with ensuring consumer protection.

This pivotal vote underscores a broader national conversation about how to balance AI innovation with public safety. As AI grows more influential in daily life, expect states to pursue new regulations addressing privacy, discrimination, and child safety—areas federal rules still lag behind.

Stay tuned for more updates on the evolving landscape of AI governance in the U.S.