Senate Backs State Control Over AI, Overturning Trump Moratorium

The U.S. Senate has delivered a decisive blow to a proposed 10-year federal moratorium on state artificial intelligence regulation, overwhelmingly voting to remove it from President Trump’s significant tax and spending bill. The 99-1 vote signals a strong legislative preference for empowering states to take the lead in governing the rapidly evolving AI landscape.
Republican Senator Marsha Blackburn successfully introduced the amendment to strike the ban during a “vote-a-rama” session, a marathon period of amendment consideration. This legislative maneuver demonstrates a clear intent to allow states to develop their own AI frameworks without federal preemption. The outcome is a victory for proponents of decentralized governance in emerging technology sectors.
The Senate’s initial of the bill had a milder impact, merely stipulating that states with AI regulations would be ineligible for a new $500 million fund dedicated to AI infrastructure. The complete removal of the ban, however, is a more robust endorsement of state authority, ensuring no federal impediments to state-level AI policymaking. This sets a new precedent for federal-state relations in AI.
Major AI companies, including Google and OpenAI, have publicly supported federal preemption, arguing it would streamline innovation by preventing a fragmented regulatory environment. However, Senator Blackburn argued vehemently for the necessity of state action, stating, “Until Congress passes federally preemptive legislation like the Kids Online Safety Act and an online privacy framework, we can’t block states from making laws that protect their citizens.”