The US Senate is close to passing a provision that would temporarily block states from enforcing their own AI laws - but only if they receive funding from a new $500 million broadband expansion program. The measure, which is part of a tax bill backed by former President Donald Trump, is being driven by Senator Ted Cruz.
The original draft called for a ten-year ban on state-level AI laws, but negotiations have cut the restriction to five years.
The proposal includes explicit exceptions: state laws aimed at protecting children online, as well as certain copyright rules, are allowed to remain in force. For example, Tennessee's ELVIS Act - which bans the use of AI to mimic musicians' voices without consent - will stay in place. The ELVIS Act was a major sticking point during negotiations, according to Bloomberg. Senator Marsha Blackburn, who represents Nashville's music industry hub, made sure that laws protecting creatives and other vulnerable groups would continue to apply.
A broad alliance of business leaders and politicians have lined up behind the measure. Microsoft, Meta, and venture capital firm Andreessen Horowitz all support the plan, along with prominent tech figures like Palmer Luckey (Anduril) and Joe Lonsdale (Palantir). Commerce Secretary Howard Lutnick and White House advisors David Sacks and Michael Kratsios are also backing the proposal. Supporters argue that unified federal rules are crucial for national security and maintaining US tech competitiveness.
Not everyone is on board, even within the Republican Party. Some senators have criticized the proposal as a gift to Big Tech. The measure initially faced long odds in the Senate, where just a few dissenting votes could have derailed it. But the compromise between Cruz and Blackburn appears to have secured enough support for passage. Whether the revised version will also pass in the House of Representatives remains unclear.
