--- title: Senate Overturns AI Regulation Moratorium in Budget Bill description: The US Senate voted 99-1 to remove a provision from the budget bill that would have prevented states from regulating AI systems for 10 years. The moratorium,... canonical: https://daily.dev/posts/senate-overturns-ai-regulation-moratorium-in-budget-bill-koo19kgfk twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Senate Overturns AI Regulation Moratorium in Budget Bill | daily.dev og:description: The US Senate voted 99-1 to remove a provision from the budget bill that would have prevented states from regulating AI systems for 10 years. The moratorium,... og:url: https://daily.dev/posts/senate-overturns-ai-regulation-moratorium-in-budget-bill-koo19kgfk og:image: https://api.daily.dev/og/posts/KOO19KgFK.png og:image:alt: Senate Overturns AI Regulation Moratorium in Budget Bill og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Senate Overturns AI Regulation Moratorium in Budget Bill **[Collections](https://daily.dev/sources/collections)** · 2 min read · 3 upvotes · 2 comments ## Summary The US Senate voted 99-1 to remove a provision from the budget bill that would have prevented states from regulating AI systems for 10 years. The moratorium, initially supported by tech executives like Sam Altman, faced bipartisan opposition from lawmakers concerned about consumer protection and oversight. Senators Blackburn and Cantwell led the effort to strip the provision, with support from creative industries worried about unregulated AI. While supporters argued the moratorium would prevent regulatory fragmentation and maintain competitiveness against China, critics emphasized the need for consumer protection and pointed to existing state laws like California's AI transparency requirements and Tennessee's ELVIS Act as important safeguards. ## Content The United States Senate voted decisively, 99-1, to remove a provision from the Trump administration's budget bill that would have barred states from enacting regulations on artificial intelligence systems for a decade. Initially proposed by Sen. Ted Cruz, the measure received backing from tech industry executives, including figures such as Sam Altman. It faced bipartisan resistance from lawmakers who contended that the moratorium could dilute oversight of AI companies and potentially affect consumer rights. Senators Marsha Blackburn and Maria Cantwell spearheaded the amendment to strip the controversial AI moratorium from the bill. Their effort garnered support particularly from representatives of creative industries concerned about the impact of unregulated AI technology. Despite the removal of the 10-year ban, debate continues over an alternative proposal aiming for a five-year restriction on state-level AI regulations. Supporters of the initial provision argued that it would prevent a fragmented landscape of state rules which, they claim, could stifle innovation and compromise America's competitive edge against nations like China. Critics, however, stressed the necessity of consumer protection and the risks of allowing AI companies to operate without adequate oversight. They pointed to existing state laws such as California's requirements for AI training transparency and Tennessee's ELVIS Act, which safeguards creators from AI impersonation, as essential regulatory frameworks at risk. Following the Senate's action, the bill is now set to return to the House for final approval. President Trump aims to secure its passage before the July 4th recess. ## Community discussion Top comments from developers on daily.dev. **@nightshffftt** · 0 upvotes > The bill would ban any kind of regulation on AI for the next 10 years, and withhold federal funding for energy infrastructure if states attempt to pass AI laws of their own. To say that it's reckless would be an understatement. It's insanity. ## Similar posts on daily.dev - [Don’t just attend KubeCon \+ CloudNativeCon, Merge Forward your experience\!](https://daily.dev/posts/don-t-just-attend-kubecon-cloudnativecon-merge-forward-your-experience--l0rpp73x8) · CNCF · 1 upvotes · 0 comments - [Announcing H2 2026 KCDs](https://daily.dev/posts/announcing-h2-2026-kcds-m96goajm1) · CNCF · 1 upvotes · 0 comments - [Two months of Open Community Groups](https://daily.dev/posts/two-months-of-open-community-groups-asf52zhbs) · CNCF · 0 upvotes · 0 comments - [CNCF Unveils Schedule for KubeCon \+ CloudNativeCon Europe 2026](https://daily.dev/posts/cncf-unveils-schedule-for-kubecon-cloudnativecon-europe-2026-ikhcoa5cb) · CNCF · 2 upvotes · 0 comments - [CNCF Debuts KubeCon \+ CloudNativeCon Japan 2026 Schedule](https://daily.dev/posts/cncf-debuts-kubecon-cloudnativecon-japan-2026-schedule-xp5pyudub) · CNCF · 1 upvotes · 0 comments --- Tags: [#ai](https://daily.dev/tags/ai), [#regulation](https://daily.dev/tags/regulation) [View this post on daily.dev](https://daily.dev/posts/senate-overturns-ai-regulation-moratorium-in-budget-bill-koo19kgfk) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Senate Overturns AI Regulation Moratorium in Budget Bill","url":"https://daily.dev/posts/senate-overturns-ai-regulation-moratorium-in-budget-bill-koo19kgfk","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/senate-overturns-ai-regulation-moratorium-in-budget-bill-koo19kgfk"},"datePublished":"2025-07-01T18:29:25.238Z","dateModified":"2025-07-01T18:29:44.491Z","description":"The US Senate voted 99-1 to remove a provision from the budget bill that would have prevented states from regulating AI systems for 10 years. 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To say that it’s reckless would be an understatement. It’s insanity.","datePublished":"2025-07-02T01:42:41.332Z","url":"https://daily.dev/posts/KOO19KgFK#c-CTmzGyIFP","author":{"@type":"Person","name":"Coding at Night","url":"https://daily.dev/nightshffftt","image":"https://media.daily.dev/image/upload/s--VV15-_aX--/f_auto/v1755830750/avatars/avatar_DcFWKQUycX0JONrAQ8kfs?_a=BAMClqZW0"}}]} ```