GOP Senators Reach Deal on AI Regulation Ban

Sen. Marsha Blackburn (R-Tenn.) and Senate Commerce Chair Ted Cruz (R-Texas) have reportedly closed a deal regarding a new text for a provision in the sweeping tax package of President Trump. The package basically seeks to bar the states from regulating artificial intelligence and its application.

According to Trump’s provision, the states could not make their own and respective legislations regarding artificial intelligence if they want to access the $500 million funding for AI infrastructure and deployment. However, after the opposition from Blackburn, the time limit will be reduced to 5 years from 10 years. 

Also, the new update will exempt the state laws requiring to regulation of deceptive practices, child sexual abuse material, children’s online safety, and publicity rights. 

Blankburn said in a statement, “For decades, Congress has proven incapable of passing legislation to govern the virtual space and protect Americans from being exploited by Big Tech, and it’s why I continue to fight to pass federal protections for Tennesseans and Americans alike,” Blackburn said in a statement. 

“To ensure we do not decimate the progress states like Tennessee have made to stand in the gap, I am pleased Chairman Cruz has agreed to update the AI provision to exempt state laws that protect kids, creators, and other vulnerable individuals from the unintended consequences of AI”, she further added.  

Looking back over the years, Blackburn has worked tremendously while seeking legislation for children’s online safety. She has reintroduced several relevant legislations, like the Kids Online Safety Act (KOSA) last month with Senate Minority Leader Chuck Schumer (D-N.Y.), Senate Majority Leader John Thune (R-S.D.), and Sen. Richard Blumenthal (D-Conn.). 

Blackburn also shared in a statement, “I look forward to working with him in the coming months to hold Big Tech accountable, including by passing the Kids Online Safety Act and an online privacy framework that gives consumers more power over their data. It’s time to get the One Big Beautiful Bill Act to the President’s desk so we can deliver on our promise of enacting the America First agenda”.

However, it still seeks clarity if the new deal on the AI provision will resolve the concerns of other lawmakers and professionals who voiced opposition to measures, including Josh Hawley (R-Mo.), Sens. Ron Johnson (R-Wis.), and Rep. Marjorie Taylor Greene (R-Ga.).

The new provision has already been passed by Senate Parliamentarian Elizabeth MacDonough last week, stating that the AI moratorium isn’t violating the Byrd rule and thus can remain in the reconciliation bill.