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Blackburn says AI deal with Cruz is off

  • Senator Marsha Blackburn withdrew her support Monday night for a compromise with Senator Ted Cruz on an AI regulation moratorium in President Trump's "big, beautiful bill."
  • The deal initially required states to refrain from adopting new AI regulations for five years to access $500 million in AI infrastructure funding, reduced from an original 10-year moratorium.
  • The agreement allowed states to maintain authority over issues such as harmful content involving children, unauthorized use of individuals' images or identities, and fraudulent conduct, though it encountered resistance due to debates over state versus federal regulatory power.
  • Mike Davis, Article III Project president, called the moratorium removal a major victory ensuring innovation, while Blackburn warned the provision might allow Big Tech to exploit children, creators, and conservatives.
  • Following Blackburn's withdrawal, she now co-sponsors legislation with Senator Maria Cantwell to fully remove the AI moratorium, reflecting ongoing tensions between federal oversight and state regulatory authority.
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Engadget broke the news in United States on Monday, June 30, 2025.
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