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Senate Republicans Reach Deal on Five-Year State AI Regulation Freeze

  • Senate Republicans agreed to a provision placing a five-year federal pause on state-level AI regulations, linking this moratorium to eligibility for a newly allocated $500 million fund dedicated to AI infrastructure, as part of a major spending package planned for mid-2025.
  • This moratorium followed an initial proposal for a 10-year ban linking state compliance to a $42 billion broadband fund, which drew criticism and led to revisions to clarify funding impacts.
  • Meanwhile, states like Colorado enacted early comprehensive AI laws last year, but local leaders warned these fragmented rules burden businesses and urged a coordinated federal framework.
  • Critics including policymakers and labor leaders argued the moratorium creates a regulatory vacuum, denying states the ability to protect residents and hold AI companies accountable.
  • The moratorium aims to provide federal consistency while lawmakers prepare national AI policies expected to be released by July 22, 2025, but concerns about state authority and oversight remain unresolved.
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The Texas Tribune broke the news in Austin, United States on Friday, June 27, 2025.
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