Senate Votes to Strike AI Regulation Ban from Trump’s Tax and Spending Bill

Written by Jeremy Werner

Jeremy is an experienced journalist, skilled communicator, and constant learner with a passion for storytelling and a track record of crafting compelling narratives. He has a diverse background in broadcast journalism, AI, public relations, data science, and social media management.
Posted on 07/01/2025
In News

The U.S. Senate voted 99-1 to eliminate a provision that would have imposed a 10-year federal ban on state-level regulation of artificial intelligence (AI), according to Reuters.

 

The amendment, offered by Republican Senator Marsha Blackburn of Tennessee, was adopted during a lengthy “vote-a-rama” session as lawmakers debated President Donald Trump’s sweeping tax-cut and spending bill. The removed provision would have prevented states from regulating AI, though the Senate version of the bill had tied that ban only to eligibility for a new $500 million AI infrastructure fund.

 

Republican Senator Thom Tillis of North Carolina cast the lone dissenting vote, favoring the original federal moratorium.

 

Major AI firms such as Google and OpenAI have advocated for a unified national regulatory approach, warning that state-by-state rules could stifle innovation and create legal uncertainty.

 

Blackburn had initially supported a compromise drafted with Senate Commerce Committee Chair Ted Cruz that would have shortened the ban to five years and carved out exceptions for areas like voice protections for artists and child safety. However, she ultimately withdrew support for the compromise ahead of the vote.

 

“The current language is not acceptable to those who need these protections the most,” Blackburn said in a statement. “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.”

 

The amendment’s adoption removes a significant barrier for states seeking to implement their own AI-related laws. It also underscores the deepening legislative divide over how—and at what level—AI should be governed as the technology rapidly reshapes everything from content creation to consumer services.

 

 

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If you’re wondering how the U.S. ‘s AI measures, or any other AI regulations and laws worldwide could impact you and your business, don’t hesitate to reach out to BABL AI. Their Audit Experts can address your concerns and questions while offering valuable insights.

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