US Senate Scraps AI Moratorium from Budget Bill

The US Senate drops the AI moratorium from its budget bill, ending a proposed 10-year ban on state-level AI regulation.
Matilda
US Senate Scraps AI Moratorium from Budget Bill
US Senate Reverses Course on AI Moratorium In a major shift in U.S. AI policy, the Senate has voted to remove a highly debated AI moratorium from the new federal budget bill, effectively allowing states to pursue their own artificial intelligence regulations. The moratorium, introduced by Sen. Ted Cruz as part of the “Big Beautiful Bill,” proposed a 10-year federal freeze on state-level AI laws. It sparked intense political debate and backlash across party lines, with critics warning it would hand unchecked power to major tech firms while stripping states of the authority to protect their constituents. With the Senate's recent decision, states now regain the ability to regulate AI technologies—marking a pivotal moment in America’s journey toward responsible AI oversight. Image Credits:Anna Moneymaker / Getty Images Why the AI Moratorium Sparked Nationwide Debate The AI moratorium provision was initially supported by high-profile Silicon Valley figures including OpenAI CEO Sam Altman, …