Senate Republicans recently removed a highly contentious provision from their tax and spending bill that would have imposed a 10-year moratorium preventing states from enacting their own AI regulations. The amendment to eliminate this moratorium, introduced by Sen. Marsha Blackburn, passed overwhelmingly 99-1 after Blackburn withdrew from a compromise that would have shortened the moratorium to five years with exceptions for child online safety laws. Blackburn and many state lawmakers, attorneys general, and civil rights groups opposed the moratorium, arguing that states must retain the ability to protect citizens from AI-related harms, especially given Congress’s slow pace on AI legislation.

The debate highlights a broader tension between industry leaders and some federal officials, who argue that a unified federal approach is necessary to keep the U.S. competitive with China, and advocates who warn that a federal moratorium would stifle state efforts to address AI risks such as deepfakes, privacy violations, and exploitation. Major tech companies and business groups supported the moratorium to avoid a patchwork of conflicting state laws, while civil rights organizations and others stressed that blocking state regulations could worsen harms like algorithmic discrimination and sexual exploitation enabled by AI. The bill passed narrowly, with Vice President JD Vance casting the tie-breaking vote.