The U.S. Senate has decisively removed a controversial clause from the Trump administration’s recent budget proposal, which would have imposed a 10-year ban on states independently regulating artificial intelligence technologies. The measure, originally introduced by Senator Ted Cruz (R-TX), generated considerable attention and debate, particularly among industry figures and consumer advocates.
The proposed moratorium received extensive backing from several influential Silicon Valley executives, including OpenAI’s Sam Altman, Anduril Industries’ founder Palmer Luckey, and prominent investor Marc Andreessen of Andreessen Horowitz. Supporters argued the restriction was crucial for preventing a fragmented state-by-state regulatory environment that could inhibit AI innovation and growth.
However, the provision came under bipartisan criticism, with opponents across the political spectrum asserting that restraining states’ powers to establish their own regulations would ultimately disadvantage consumers. They argued the measure risked giving major AI companies too much freedom from essential oversight. Critics also expressed concern over Cruz’s attempt to link regulatory compliance directly to eligibility for federal broadband funding.
After prolonged negotiations, Senators Marsha Blackburn (R-TN) and Maria Cantwell (D-WA) submitted an amendment on Monday to remove the moratorium entirely. Earlier, Blackburn had engaged with proponents of the clause and reached a tentative agreement with Cruz to shorten the proposed ban from 10 to five years; however, she later reversed course and withdrew her support completely.
On Tuesday’s vote, Blackburn and Cantwell’s amendment to strip the “AI moratorium” from the budget bill passed overwhelmingly in the Senate by a vote of 99-1.
