State AI Oversight Greenlit as Senate Rejects Federal Moratorium

A federal ban on state-level artificial intelligence regulation has been overwhelmingly rejected by the Republican-led U.S. Senate. This pivotal decision, occurring during a “vote-a-rama” session for President Trump’s tax and spending bill, marks a significant victory for proponents of state autonomy in governing emerging technologies. The 99-1 vote illustrates broad legislative support for allowing states to craft their own AI policies.
The amendment, championed by Republican Senator Marsha Blackburn, directly countered a provision in the bill that sought to impose a decade-long federal moratorium. This moratorium would have effectively blocked states from implementing any form of AI regulation, a move that drew criticism from various corners. The swift and decisive vote to strike this provision indicates a prevailing sentiment in the Senate that states should not be preempted in this domain.
Earlier iterations of the legislation had a softer impact on state regulation, merely restricting states with AI oversight from accessing a $500 million fund designed to boost AI infrastructure. However, the complete removal of the outright ban goes much further, empowering states to act without financial disincentives tied to federal funding. This opens a new chapter for AI governance in the United United States.
While some major AI companies like Google and OpenAI have expressed a preference for a unified federal regulatory approach, citing concerns about innovation being hampered by a “panoply of differing requirements,” Senator Blackburn emphasized the immediate need for state protections. She argued that until comprehensive federal laws like the Kids Online Safety Act are enacted, states must be free to safeguard their citizens.