Senate Republicans Revise AI Regulation Ban in Controversial Tax Bill

Senate Republicans revise ban on state AI regulations in bid to preserve controversial provision

WASHINGTON (AP) -- Senate Republicans have made changes to their party's sweeping tax bill in hopes of preserving a new policy that would prevent states from regulating artificial intelligence for a decade. In legislative text unveiled Thursday night, Senate Republicans proposed denying states federal funding for broadband projects if they regulate AI. That's a change from a provision in the House-passed version of the tax overhaul that simply banned any current or future AI regulations by the states for 10 years. "These provisions fulfill the mandate given to President Trump and Congressional Republicans by the voters: to unleash America's full economic potential and keep her safe from enemies," Sen. Ted Cruz, chairman of the Senate Commerce Committee, said in a statement announcing the changes. The proposed ban has angered state lawmakers in Democratic and Republican-led states and alarmed some digital safety advocates concerned about how AI will develop as the technology rapidly advances. But leading AI executives, including OpenAI's Sam Altman, have made the case to senators that a "patchwork" of state AI regulations would cripple innovation. Some House Republicans are also uneasy with the provision. Rep. Marjorie Taylor Greene, R-Ga., came out against the AI regulatory moratorium in the House bill after voting for it. She said she had not read that section of the bill. "We should be reducing federal power and preserving state power. Not the other way around," Greene wrote on social media. Senate Republicans made their change in an attempt to follow the special process being used to pass the tax bill with a simple majority vote. To comply with those rules, any provision needs to deal primarily with the federal budget and not government policy. Republican leaders argue, essentially, that by setting conditions for states to receive certain federal appropriations -- in this instance, funding for broadband internet infrastructure -- they would meet the Senate's standard for using a majority vote. Cruz told reporters Thursday that he will make his case next week to Senate parliamentarian on why the revised ban satisfies the rules. The parliamentarian is the chamber's advisor on its proper rules and procedures. While the parliamentarian's ruling are not binding, senators of both parties have adhered to their findings in the past. Senators generally argue that Congress should take the lead on regulating AI but so far the two parties have been unable to broker a deal that is acceptable to Republicans' and Democrats' divergent concerns. The GOP legislation also includes significant changes to how the federal government auctions commercial spectrum ranges. Those new provisions expand the range of spectrum available for commercial use, an issue that has divided lawmakers over how to balance questions of national security alongside providing telecommunications firms access to more frequencies for commercial wireless use. Senators are aiming to pass the tax package, which extends the 2017 rate cuts and other breaks from President Donald Trump's first term along with new tax breaks and steep cuts to social programs, later this month.

Senate Republicans revise ban on state AI regulations in bid to preserve controversial provision

WASHINGTON -- Senate Republicans have made changes to their party's sweeping tax bill in hopes of preserving a new policy that would prevent states from regulating artificial intelligence for a decade. In legislative text unveiled Thursday night, Senate Republicans proposed denying states federal funding for broadband projects if they regulate AI. That's a change from a provision in the House-passed version of the tax overhaul that simply banned any current or future AI regulations by the states for 10 years. "These provisions fulfill the mandate given to President Trump and Congressional Republicans by the voters: to unleash America's full economic potential and keep her safe from enemies," Sen. Ted Cruz, chairman of the Senate Commerce Committee, said in a statement announcing the changes. The proposed ban has angered state lawmakers in Democratic and Republican-led states and alarmed some digital safety advocates concerned about how AI will develop as the technology rapidly advances. But leading AI executives, including OpenAI's Sam Altman, have made the case to senators that a "patchwork" of state AI regulations would cripple innovation. Some House Republicans are also uneasy with the provision. Rep. Marjorie Taylor Greene, R-Ga., came out against the AI regulatory moratorium in the House bill after voting for it. She said she had not read that section of the bill. "We should be reducing federal power and preserving state power. Not the other way around," Greene wrote on social media. Senate Republicans made their change in an attempt to follow the special process being used to pass the tax bill with a simple majority vote. To comply with those rules, any provision needs to deal primarily with the federal budget and not government policy. Republican leaders argue, essentially, that by setting conditions for states to receive certain federal appropriations -- in this instance, funding for broadband internet infrastructure -- they would meet the Senate's standard for using a majority vote. Cruz told reporters Thursday that he will make his case next week to Senate parliamentarian on why the revised ban satisfies the rules. The parliamentarian is the chamber's advisor on its proper rules and procedures. While the parliamentarian's ruling are not binding, senators of both parties have adhered to their findings in the past. Senators generally argue that Congress should take the lead on regulating AI but so far the two parties have been unable to broker a deal that is acceptable to Republicans' and Democrats' divergent concerns. The GOP legislation also includes significant changes to how the federal government auctions commercial spectrum ranges. Those new provisions expand the range of spectrum available for commercial use, an issue that has divided lawmakers over how to balance questions of national security alongside providing telecommunications firms access to more frequencies for commercial wireless use. Senators are aiming to pass the tax package, which extends the 2017 rate cuts and other breaks from President Donald Trump's first term along with new tax breaks and steep cuts to social programs, later this month.

Senate Republicans revise ban on state AI regulations in bid to preserve controversial provision

WASHINGTON (AP) -- Senate Republicans have made changes to their party's sweeping tax bill in hopes of preserving a new policy that would prevent states from regulating artificial intelligence for a decade. In legislative text unveiled Thursday night, Senate Republicans proposed denying states federal funding for broadband projects if they regulate AI. That's a change from a provision in the House-passed version of the tax overhaul that simply banned any current or future AI regulations by the states for 10 years. "These provisions fulfill the mandate given to President Trump and Congressional Republicans by the voters: to unleash America's full economic potential and keep her safe from enemies," Sen. Ted Cruz, chairman of the Senate Commerce Committee, said in a statement announcing the changes. The proposed ban has angered state lawmakers in Democratic and Republican-led states and alarmed some digital safety advocates concerned about how AI will develop as the technology rapidly advances. But leading AI executives, including OpenAI's Sam Altman, have made the case to senators that a "patchwork" of state AI regulations would cripple innovation. Some House Republicans are also uneasy with the provision. Rep. Marjorie Taylor Greene, R-Ga., came out against the AI regulatory moratorium in the House bill after voting for it. She said she had not read that section of the bill. "We should be reducing federal power and preserving state power. Not the other way around," Greene wrote on social media. Senate Republicans made their change in an attempt to follow the special process being used to pass the tax bill with a simple majority vote. To comply with those rules, any provision needs to deal primarily with the federal budget and not government policy. Republican leaders argue, essentially, that by setting conditions for states to receive certain federal appropriations -- in this instance, funding for broadband internet infrastructure -- they would meet the Senate's standard for using a majority vote. Cruz told reporters Thursday that he will make his case next week to Senate parliamentarian on why the revised ban satisfies the rules. The parliamentarian is the chamber's advisor on its proper rules and procedures. While the parliamentarian's ruling are not binding, senators of both parties have adhered to their findings in the past. Senators generally argue that Congress should take the lead on regulating AI but so far the two parties have been unable to broker a deal that is acceptable to Republicans' and Democrats' divergent concerns. The GOP legislation also includes significant changes to how the federal government auctions commercial spectrum ranges. Those new provisions expand the range of spectrum available for commercial use, an issue that has divided lawmakers over how to balance questions of national security alongside providing telecommunications firms access to more frequencies for commercial wireless use. Senators are aiming to pass the tax package, which extends the 2017 rate cuts and other breaks from President Donald Trump's first term along with new tax breaks and steep cuts to social programs, later this month.

Senate proposes alternative to AI moratorium in Trump's 'big beautiful bill'

Rep. Marjorie Taylor Greene will oppose Trump's 'big beautiful bill' over AI | The Hill Senate Commerce Republicans are proposing alternative to a controversial provision in President Trump's tax and spending bill about states' regulation of artificial intelligence (AI) after concerns arose from some GOP members. The Senate Commerce, Science and Transportation unveiled its proposed text for Trump's "big, beautiful bill" Thursday. The new text altered the House version's language surrounding a potential 10-year ban on state regulation of AI, which received pushback from at least two GOP senators and Rep. Marjorie Taylor Greene (R-Ga.). The provision in the Senate version requires states to not regulate AI if they want access to federal broadband funding. This differs from the House-passed version, which would establish a blanket 10-year ban on state laws regulating AI models, systems or automated decision systems. This includes enforcement of existing and future laws on the state level. Proponents of the moratorium argue a patchwork of state laws is confusing or burdensome to technology companies trying to innovate in multiple parts of the country. While the provision sailed through the House Commerce Committee last month, it faced an uphill battle in the Senate. Some senators warned the provision may not pass the Byrd Rule, a procedural rule prohibiting "extraneous matters" from being included in reconciliation packages. This includes provisions that do not "change outlays or revenues." The updated text appears to try to tie the 10-year moratorium closer to funding matters. Some GOP members also have concerns about taking power away from the states. Despite voting for the House version of the "big, beautiful bill," Greene admitted this week she just learned of the AI provision. "We don't get the full bill text until very close to the time to vote for it, and so that was one section that was two pages that I didn't see," Greene later told NewsNation, adding, "I find it so problematic that I'm willing to come forward and admit there are two pages that I didn't read, because I never want to see a situation where state rights are stripped away." Greene said she would vote against the spending bill when it comes back to the House unless the provision is removed. It is not clear whether the Senate version would appease her concerns. Sens. Marsha Blackburn (R-Tenn.) and Josh Hawley (R-Mo.), both known for their criticism of major tech companies, also pushed back against the moratorium before the Senate altered the text. "We certainly know that in Tennessee we need those protections," Blackburn said during a hearing last month on the No Fakes Act, which would create federal protections for artists' voice, likeness and image from nonconsensual AI-generated deepfakes. "Until we pass something that is federally preemptive, we can't call for a moratorium," she said. Hawley said the moratorium "better be out" earlier this week, Politico reported. Aside from AI regulatory concerns, the tax and spending bill, officially titled the "One Big Beautiful Bill," extends Trump's 2017 tax cuts and boosts funding for border and defense priorities, while cutting spending on programs such as food assistance and Medicaid.