Senate votes 99-1 to reject 10-year AI regulation ban

The U.S. Senate voted 99-1 on Tuesday to remove a provision from President Trump’s budget bill that would have banned states from regulating artificial intelligence for the next 10 years. The last-minute elimination came after intense opposition from advocacy groups, lawmakers, and nearly 80,000 Americans who viewed the moratorium as dangerous federal overreach that would have left consumers without protection while offering no federal AI safeguards in return.

What you should know: The defeated provision would have created a complete regulatory vacuum around AI at both state and federal levels.

• The ban offered no federal protections to replace state-level oversight, essentially creating a decade-long free pass for AI companies to operate without meaningful regulation.
• Consumer Reports, a consumer advocacy organization, led the opposition campaign since May, collecting nearly 80,000 emails from Americans demanding the provision’s removal.
• The vote represents a rare bipartisan consensus, with senators from both parties pushing to eliminate the measure.

Why this matters: States have emerged as the primary laboratories for AI regulation while Congress has failed to pass comprehensive federal AI legislation.

• Without federal guardrails in place, the moratorium would have prevented states from responding to emerging AI harms, biased algorithms, or dangerous generative AI applications.
• In a rapidly evolving field where AI is being deployed in classrooms, hospitals, courts, and workplaces, local responsiveness is critical for consumer protection.

What they’re saying: Advocacy leaders framed the vote as essential protection for families and children in an AI-powered world.

• “We are pleased with the bipartisan vote to reject the 10-year moratorium on states regulating AI,” said Grace Gedye, policy analyst for AI issues at Consumer Reports. “Congress should not prohibit states from protecting their residents when it comes to AI — especially without offering any alternative protections.”
• James P. Steyer, founder and CEO of Common Sense Media, a pro-family consumer group, called it “a win for kids, families and the future,” adding that “nearly three-quarters of Americans want both the states and the federal government to ensure that fast-moving technology in our kids’ and families’ lives is both cutting-edge and safe.”

The bigger picture: This victory for state rights advocates doesn’t resolve the broader AI governance challenge facing the United States.

• Federal lawmakers still haven’t passed meaningful AI legislation, leaving agencies to scramble with regulatory responses while Congress remains slow to act.
• The message from consumer advocates is clear: if Washington won’t lead on AI regulation, don’t prevent states from filling the void.

Who was involved: A bipartisan coalition of senators pushed to eliminate the provision, including Blackburn, Cantwell, Collins, Markey, Marshall, Blumenthal, Murkowski, and Kim.