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Senate Can Keep Ban on State AI Rules in Trump Tax Bill

  • In a procedural ruling last Saturday, Senate Parliamentarian Elizabeth McDonough determined the AI moratorium provision complies with budget rules, enabling its inclusion via reconciliation.
  • After the Senate Commerce panel unveiled its reconciliation draft, Cruz linked the AI moratorium to BEAD funding to meet budget rules, ensuring inclusion.
  • The Senate parliamentarian approved the AI moratorium, linking it to federal broadband funds, which states risk losing access if they enforce AI regulations for 10 years.
  • The moratorium bars states like California and New York from enacting or enforcing AI laws, impacting sectors such as hiring, healthcare, and policing.
  • Looking ahead, proponents argue that federal preemption will streamline AI deployment and prevent burdensome state laws, supporting industry innovation and competitiveness.
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T&T broke the news in on Sunday, June 22, 2025.
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