Senate Strikes AI Moratorium: What It Means For State Regulation

On July 1, the U.S. Senate voted to fully remove the previously proposed ten-year moratorium on regulation of Artificial Intelligence by states ("AI Moratorium"), after the provision's passage by the House. Despite a number of suggested compromises, including a reduction in the time period from ten to five years and exceptions for children's online safety and personal publicity rights, ultimately, Senators voted 99-1 to remove the provision from President Trump's "One Big Beautiful Bill." Though a number of large technology companies had reportedly lobbied in support of the AI Moratorium, the provision faced criticism across the political spectrum. The removal, which was contained within an amendment to the bill introduced by Senator Marsha Blackburn, will allow states to continue their push for AI regulation, at least until (and if) the federal government adopts preemptive legislation.