Cruz’s AI regulation ban survives Senate vote despite GOP pushback

Senator Ted Cruz’s proposal to penalize states that regulate artificial intelligence has survived a key procedural hurdle but faces significant Republican opposition and has been substantially weakened. The Senate parliamentarian ruled that Cruz’s modified plan can move forward without requiring 60 votes, though the provision now only threatens to cut states off from a new $500 million AI fund rather than the entire $42 billion broadband deployment program.

What you should know: Cruz’s original proposal would have imposed a devastating 10-year moratorium on state AI laws by blocking access to federal broadband funding.

• The Texas senator initially wanted to make states ineligible for the $42 billion Broadband Equity, Access, and Deployment (BEAD) program if they regulated AI in any way.
• Under pressure from fellow Republicans, Cruz scaled back the proposal to only affect a new $500 million AI infrastructure fund he’s proposing to add to the budget bill.
• The parliamentarian’s ruling means the provision can advance through budget reconciliation with just a simple majority vote.

Bipartisan opposition emerges: Republican senators joined Democrats in criticizing the anti-regulation moratorium during a rare bipartisan press conference.

• Sens. Maria Cantwell (D-Wash.) and Marsha Blackburn (R-Tenn.) held a joint press conference opposing the proposal, with Blackburn stating it’s “not the type of thing that we put into reconciliation bills.”
• Republican Sens. Ron Johnson (Wis.) and Josh Hawley (Mo.) have also criticized the idea of preventing states from regulating AI.
• Cantwell noted that 24 states began “regulating AI in some way” last year, adopting laws “that fill a gap while we are waiting for federal action.”

What’s at stake: State attorneys general from both parties warn the moratorium could invalidate existing consumer protection laws.

• Washington’s Democratic Attorney General Nick Brown said the proposal would invalidate laws prohibiting deepfakes against political candidates, non-consensual fabricated sexual images, and forged digital likenesses used for fraud.
• Tennessee’s Republican Attorney General Jonathan Skrmetti warned that “big tech companies” could argue the moratorium prevents enforcement of “any consumer protection laws if there’s an AI component to the product.”

Cruz’s justification: The senator argues his proposal prevents states “from strangling AI deployment with EU-style regulation.”

• His original language would have blocked BEAD funds from any state enforcing laws “limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce.”
• Bloomberg reported the provision represents “a win for tech companies pushing to stall and override dozens of AI safety laws across the country.”

Other Republican priorities face hurdles: The parliamentarian struck down several other GOP provisions as requiring 60-vote thresholds.

• Rejected provisions include limits on “sanctuary city” funding, expanded state authority to arrest undocumented immigrants, and restrictions on federal court injunctions against the government.
• Senate Democratic Leader Chuck Schumer’s office said a provision requiring costly bonds for emergency court orders against the Trump administration has been removed entirely.