A deal addressing concerns over an artificial intelligence regulation moratorium in President Donald Trump’s “big beautiful bill” collapsed after one of its architects pulled out.
Sens. Marsha Blackburn (R-TN) and Ted Cruz (R-TX) came to a compromise regarding the bill’s provision forbidding states from regulating AI for ten years, bringing it down to five years, with carveouts to regulate child sexual abuse material, unconsensual use of a person’s likeness, and other deceitful practices. On Monday night, Blackburn announced she was withdrawing from the deal.
“While I appreciate Chairman Cruz’s efforts to find acceptable language that allows states to protect their citizens from the abuses of AI, the current language is not acceptable to those who need these protections the most,” she said in a statement.
“This provision could allow Big Tech to continue to exploit kids, creators, and conservatives,” Blackburn added. “Until Congress passes federally preemptive legislation like the Kids Online Safety Act and an online privacy framework, we can’t block states from making laws that protect their citizens.”
Cruz didn’t lose hope, however, telling Punchbowl News, “The night is young,” when asked about her withdrawal.
Chances of Blackburn coming back to the table are slim, however, as she’s already turned to Sen. Maria Cantwell (D-WA) to co-sponsor a bill to remove the AI regulation moratorium completely.
The AI regulation moratorium for states has split Republicans. Several have expressed concerns over the provision’s impact on states’ rights, while others stress the need for a single, consistent regulatory framework from the federal government.
Rep. Mike Flood (R-NE), a member of the House Financial Services Committee, told the Washington Examiner last month that he thinks there is a case to be made that AI regulation is the authority of the federal government because there needs to be a standard that applies across state lines.
“The states certainly have a role — and I was in the legislature for 10 years — but I liken this to privacy, where even state-regulated insurance companies are like, please give us a federal standard,” Flood said. “So I think the provision has merit, reasonable people can disagree, but I don’t have any issues with it.”
AI PROVISION IN ‘BIG, BEAUTIFUL BILL’ SPLITS REPUBLICANS
Rep. Marjorie Taylor Greene (R-GA) was the most vocal opponent of the provision, saying she would have voted no for the bill altogether if she was aware of it at the time of voting.
“I am adamantly OPPOSED to this and it is a violation of state rights and I would have voted NO if I had known this was in there,” she said last month. “We have no idea what AI will be capable of in the next 10 years and giving it free rein and tying states hands is potentially dangerous.”