Senate Republicans have made significant changes to their sweeping tax bill in an attempt to preserve a controversial provision that would limit states’ ability to regulate artificial intelligence for a decade. The revised proposal, unveiled on Thursday night, suggests withholding federal funding for broadband projects from states that choose to regulate AI. This modification comes as a response to concerns about the original House-passed version, which outright banned state AI regulations for 10 years.
The initial provision had sparked outrage among state lawmakers from both Democratic and Republican-led states, as well as digital safety advocates who are concerned about the rapid advancement of AI technology. Some prominent AI executives, including OpenAI’s Sam Altman, have argued that a patchwork of state regulations would stifle innovation.
Senator Ted Cruz, chairman of the Senate Commerce Committee, defended the changes, stating that they align with the mandate given to President Trump and Congressional Republicans by voters to unleash America’s economic potential and ensure national safety. However, not all Republicans are in agreement; Representative Marjorie Taylor Greene, who initially voted for the House bill, later expressed her opposition to the AI regulatory moratorium, citing concerns about federal overreach and the preservation of state power.
The revision is seen as an attempt to comply with the special process required to pass the tax bill with a simple majority vote. Republican leaders argue that by conditioning federal appropriations for broadband infrastructure on states’ compliance, they are meeting the Senate’s procedural requirements. Cruz plans to make his case to the Senate parliamentarian next week, arguing that the revised ban satisfies the rules.
The tax package, which is expected to be passed later this month, includes other significant provisions such as extending the 2017 tax rate cuts and new tax breaks, alongside substantial cuts to social programs. It also contains major changes to how the federal government auctions commercial spectrum ranges, expanding the spectrum available for commercial use—a move that has been contentious due to concerns about national security and access to frequencies for telecommunications firms.
The debate over AI regulation reflects broader challenges in finding a bipartisan consensus. While senators generally agree that Congress should take the lead on AI regulation, the two parties have struggled to reconcile their divergent concerns. As the technology continues to advance rapidly, the outcome of this legislative effort will have significant implications for the future development and governance of AI in the United States.
