On July 1, 2025, in a near-unanimous 99–1 vote, the US Senate stripped the artificial intelligence (AI) moratorium provisions originally included in the budget reconciliation measure, commonly referred to as the One Big Beautiful Bill Act (OBBBA). The AI moratorium, which we previously covered our alert “House Passes 10-Year Federal Moratorium on State AI Regulation: Key Implications for Business,” would have stopped in their tracks more than 1,000 AI regulatory bills making their way through state legislative processes in state capitals.
The AI moratorium, which was a part of President Trump’s domestic policy agenda rolled into the OBBBA, drew intense criticism from senators, house members, and governors on both sides of the aisle. It fell through this week, in the midst of days and nights of nonstop legislative activity, after a high-profile compromise effort sponsored by Sens. Marsha Blackburn (R-TN) and Ted Cruz (R-TX) collapsed. Both senators ended up voting to slash the AI moratorium from the bill.
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- Date Published:7.3.2025
- Original Publication: Goodwin