US Senate Blocks State AI Law Ban: Big Tech Defeat | What is generative ai vs ai | Generative ai tools for images | Microsoft artificial intelligence name | Turtles AI
US Senate Blocks State AI Law Ban: Big Tech Defeat
In a near-unanimous vote, senators eliminate a decade-long moratorium that would have prevented states from regulating AI. Bipartisan victory for local protections against deepfakes and disinformation risks
Editorial Team2 July 2025
The US Senate has approved with a 99-1 vote the amendment to remove the 10-year moratorium on state AI regulations from the “Big Beautiful Bill,” reaffirming the role of local legislatures in protecting citizens.
Key points:
- Overwhelming vote (99-1) to remove the AI moratorium from the bill.
- Bipartisan pressure: governors, attorneys general and 250 state legislators called for its removal.
- Withdrawal of the 5-year compromise between Cruz and Blackburn, called too weak.
- Thom Tillis dissented: the only vote in favor of the moratorium.
The vote held on the night between June 30 and July 1 – part of the “vote-a-rama” marathon on the numerous amendments to the legislative package known as the “One Big Beautiful Bill” – marked an important turning point. The original House bill, strategically tied to $500 million in internet infrastructure funding, would have barred states from passing or enforcing AI laws for 10 years, placing a moratorium on legislation for political deepfakes, public image protection, child protection, and more.
Senators Marsha Blackburn (R-TN), Susan Collins (R-ME), Josh Hawley (R-MO), Rand Paul (R-KY), and organizations like Public Citizen and the Institute for Law & AI criticized the provision as overly broad and infringing on state sovereignty. At the same time, big tech companies (Google, OpenAI, Microsoft) supported the moratorium, arguing that a uniform regulatory framework would be more conducive to innovation.
On Sunday, a compromise between Ted Cruz and Blackburn reduced the moratorium to five years and included exemptions for child safety and personal publicity rights; However, these guarantees were deemed insufficient, leading Blackburn to withdraw his support and to promote, together with Democrats Maria Cantwell and Ed Markey, an amendment that completely eliminated the rule.
The approval of this amendment – with only Senator Tillis opposed – reaffirms the validity of state measures in regulating AI, committing legislators to build a federal framework in the future that does not preclude local interventions or leave gaps in the protection of citizens. However, a unified national law is missing, giving space to a patchwork of different rules between states.
Currently, the amended text will be returned to the House, requiring a new approval before arriving on the desk of President Trump, who intended to have it signed by July 4.
On the sidelines, the National Conference of State Legislatures rejoiced over the decision, calling it "a strong message in favor of the role of states in addressing the risks of AI".
The Senate chose not to block state AI laws, keeping the space open for local intervention pending possible federal rules.