Senate supports state AI law ban in Trump's budget bill

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As Congressional Republicans push for Donald Trump's so-called “Big Beautiful Building” by July 4th, the senators have quietly reviewed its sweeping rules. Some controversial items have been removed, such as the proposed snap spending cuts, but one surprising element remains. This is a 10-year suspension due to artificial intelligence adjustments.

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According to Democrats on the Senate Budget Committee, the senator said the AI ​​moratorium complies with the special budget rules Republicans use to advance the bill. If passed, the measure will punish those who do so by banning states from enforcing new AI regulations for a decade and withholding federal broadband funds.

This provision is not final yet. You can challenge the Senate floor and only need a simple majority vote to be hit by the bill. Still, it portrays a bipartisan backlash. Georgia Rep. Marjorie Taylor Greene said she would vote against it, especially if she admitted she had not read the bill and knew that it contained it.

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If the spending package passes straight away, it marks a big win for tech companies trying to avoid the fragmented landscape of state-level AI laws. With the lack of federal AI frameworks in place, states are left to navigate on their own a complex combination of data privacy, copyright, and algorithmic governance issues. This moratorium effectively freezes these efforts on the truck.

So far, 47 of the 50 US states have enacted or proposed some form of AI law, reflecting broad, bipartisan concerns about unidentified growth in technology. More than 200 state lawmakers from both parties have urged Congress to abolish the suspension and warned that it could overturn a wide range of consumer protection laws.

These include regulations aimed at protecting children's online safety, addressing harm from generative AI, and overseeing the way governments adopt and deploy AI systems.

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