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US Senate Removes AI Regulation Ban from Trump Tax Bill in Overwhelming Vote

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The Republican-controlled U.S. Senate voted 99-1 on Tuesday to eliminate a 10-year federal moratorium that would have prevented states from regulating artificial intelligence. This amendment, offered by Republican Senator Marsha Blackburn, was adopted during a lengthy “vote-a-rama” session on President Trump’s tax-cut and spending bill.

Only Senator Thom Tillis voted to keep the ban. The Senate later passed the broader tax legislation with a narrow 51-50 vote. The original bill sought to restrict states from accessing a $500 million fund for AI infrastructure if they imposed AI regulations.

Major AI companies like Google and OpenAI had supported the moratorium, arguing that a consistent federal approach would foster innovation without a patchwork of state rules. However, Democratic Senator Maria Cantwell opposed the ban, emphasizing the importance of state laws to protect consumers from risks like robocalls, deepfakes, and unsafe autonomous vehicles.

Seventeen Republican governors also called for abandoning the moratorium. Arkansas Governor Sarah Huckabee Sanders said the Senate’s decision would enable states to protect children from unregulated AI harms.

Blackburn introduced the amendment shortly after withdrawing support for a compromise that would have shortened the ban to five years and allowed limited state regulation on matters such as child safety and artist protections. She stated that until Congress enacts comprehensive federal legislation, states must retain the right to protect their citizens.

Anthropic CEO Criticizes Proposed 10-Year Ban on State AI Regulation as ‘Too Blunt’

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Dario Amodei, CEO of Anthropic, argued in a New York Times opinion piece that a Republican proposal to block states from regulating artificial intelligence for 10 years is an overly blunt approach. Instead, he called for a coordinated federal effort by the White House and Congress to establish transparency standards for AI companies.

Amodei warned that a decade-long moratorium on state regulations would leave a regulatory gap with “no ability for states to act, and no national policy as a backstop,” especially given how rapidly AI technology is advancing.

The proposed ban, included in former President Donald Trump’s tax cut bill, seeks to preempt recent AI laws passed in several states. However, it has faced pushback from a bipartisan coalition of attorneys general who support state-level oversight of high-risk AI applications.

Amodei recommended a federal transparency standard requiring AI developers to implement rigorous testing and evaluation policies, disclose risk mitigation plans, and publicly share how they ensure the safety of their models before release.

He noted that Anthropic, supported by Amazon, already publishes such transparency reports, and competitors like OpenAI and Google DeepMind have adopted similar practices. Amodei suggested that legislation might be necessary to maintain transparency as AI models grow more powerful and corporate incentives to disclose risks may wane.