Senate strikes AI regulation ban from budget bill
The U.S. Senate voted early Tuesday morning to remove a proposed federal moratorium on state laws related to artificial intelligence.
July 1, 2025 — The U.S. Senate voted overwhelmingly on Tuesday morning to remove a proposed federal moratorium on state regulation of artificial intelligence from President Trump's sweeping budget bill.
Lawmakers voted 99-1 to strike the ban from the bill by adopting an amendment offered by Sen. Marsha Blackburn (R-TN) and Sen. Maria Cantwell (D-WA). The action came during a marathon session known as a "vote-a-rama," in which lawmakers offered numerous amendments to the legislation that Republicans eventually hope to pass.
Transparency Coalition Co-founders Rob Eleveld and Jai Jaisimha said in a statement following the vote:
“We thank Senators Blackburn and Cantwell for their leadership on this critical issue and for supporting the role of state lawmakers in protecting their citizens from the harmful effects of AI. State legislatures are the laboratories of American democracy, and we hope that the rapid innovation in AI policy we see at the state level will let us collectively uncover the best ideas for a federal AI policy in the near future.”
The Senate remained in session through Monday night into Tuesday morning, voting on a long series of amendments, part of the arcane process Republicans are using to bypass Democratic objections under Senate rules that normally require 60 of the chamber's 100 members to agree on legislation.
Monday’s drama: Sen. Blackburn objects
The months-long battle over the state AI law moratorium pitched into high drama late Monday, when Sen Blackburn, the Senate’s leading Republican voice on AI and online safety, publicly rejected a compromise offered by party leaders to gain her support.
That compromise moved the proposed 10-year ban on the enforcement of state AI laws to a 5-year ban. It also allowed exceptions for AI laws protecting children and the likeness and voice of an individual.
Those were critically important carveouts for Sen. Blackburn, a vocal advocate for child online safety. The likeness-and-voice exception also spoke to her home-state constituents. Last year Tennessee lawmakers passed the ELVIS Act, a groundbreaking law that protects performers from the misuse of AI tools—an important economic issue in Nashville, home of America’s country music industry.
In the end, those adjustments weren’t enough to overcome Sen. Blackburn’s concerns.
She issued this statement on Monday evening:
“While I appreciate Chairman Cruz’s efforts to find acceptable language that allows states to protect their citizens from the abuses of AI, the current language is not acceptable to those who need these protections the most. This provision could allow Big Tech to continue to exploit kids, creators, and conservatives. 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.”
As of Monday night it remained unclear what would follow in the wake of Sen. Blackburn’s statement. That suspense was resolved on Tuesday morning, when Sen. Blackburn and Sen. Cantwell, who have worked together on digital safety issues for a number of years, put the striking amendment up for vote.
Sen. Blackburn speaks on senate floor:
The 99-1 vote followed, with only Sen. Thom Tillis (R-NC) voting against the amendment.
Update: Following the removal of the AI moratorium proposal, the Senate voted to approve the full budget bill on a 51-50 vote around noon Eastern time Tuesday. The bill now goes back to the House, where Republican leaders will work to resolve differences between the Senate bill and the version previously passed by the House.