Senate Approves 10-Year Freeze on State and Local AI Rules

The Senate parliamentarian greenlit a decade-long moratorium on state and local AI regulations, marking a significant victory for GOP lawmakers. Senate Commerce Chair Ted Cruz (R-Texas) overhauled a House-approved AI freeze, aligning it with budget rules. The revised draft threatens to withhold federal broadband funds from jurisdictions enforcing AI rules—a MOVE Cruz defends as fostering national consistency.

Republicans and Democrats clashed in arguments before Senate Parliamentarian Elizabeth MacDonough. Rep. Jay Obernolte (R-Calif.) championed the freeze, warning of regulatory chaos without federal preemption. "A labyrinth of regulation" awaits, he argued, if states pursue divergent AI policies.

Conservative dissent emerged as Senators Josh Hawley (R-Mo.) and Marsha Blackburn (R-Tenn.) joined Democratic opponents. Hawley pledged to file an amendment stripping the moratorium when the package reaches the Senate floor. Blackburn echoed concerns over states' rights: "We do not need a moratorium prohibiting states from protecting their citizens."