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Sen. Marsha Blackburn Strips AI Moratorium From Trump's 'Big, Beautiful Bill' Budget

  • On July 1, Senator Marsha Blackburn successfully removed the disputed AI moratorium included in President Trump's comprehensive budget legislation known as the Big, Beautiful Bill.
  • The moratorium, initially introduced by Senator Ted Cruz, would have banned states from enforcing AI regulations for 10 years, later shortened to 5 years after bipartisan negotiations.
  • Opposition arose from Democrats and Republicans who warned the moratorium would let large AI companies operate with limited oversight and harm consumers, leading Blackburn to oppose and then repeal the provision.
  • Blackburn's amendment to strip the moratorium passed nearly unanimously by a 99 to 1 vote, allowing states to continue developing AI laws amid over 1,000 existing or pending state AI regulations.
  • The Senate's action ensures continued state-level AI regulatory authority while Congress considers federal legislation, implying a patched regulatory landscape for companies to navigate.
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nextbigwhat broke the news in on Tuesday, July 1, 2025.
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