Republican senators Marsha Blackburn and Ted Cruz found themselves at the center of a whirlwind debate as their ambitious proposal for a ten-year moratorium on state-imposed AI regulations collapsed under bipartisan scrutiny.
At a Glance
- A Republican proposal to place a 10-year moratorium on state-level AI regulations has collapsed in the Senate.
- The provision was part of the larger “One Big Beautiful Bill Act” and was initially brokered by Senators Ted Cruz and Marsha Blackburn.
- The deal fell apart after intense backlash from conservatives, including Rep. Marjorie Taylor Greene, who called it a “violation of state rights.”
- Sen. Blackburn ultimately withdrew her support, arguing the moratorium could become a gift to “Big Tech.”
A Republican Deal on AI Regulation Collapses
In a dramatic turn of events, a Republican-led effort to block states from regulating artificial intelligence has fallen apart in the U.S. Senate. The proposal, which would have created a 10-year moratorium on any new state-level AI laws, was originally included in President Trump’s “One Big Beautiful Bill” after a deal was struck between Senators Ted Cruz (R-TX) and Marsha Blackburn (R-TN).
However, the deal quickly unraveled after facing fierce criticism from a surprising source: fellow conservatives, who blasted the plan as a massive federal overreach and a giveaway to Big Tech companies.
TECH: Republican opposition to the AI moratorium is intensifying. A group of GOP senators are urging leadership to remove the provision from the reconciliation bill, citing concerns over states' rights and local regulation of AI.
Read the latest—https://t.co/MUXCq7BVbN
— Punchbowl News (@PunchbowlNews) June 26, 2025
A “Violation of State Rights”
The backlash was led by prominent conservatives who argued that the federal government has no business telling states how to protect their own citizens. “Full transparency, I did not know about this,” Rep. Marjorie Taylor Greene (R-GA) posted on X after the provision was revealed. “I am adamantly OPPOSED to this, and it is a violation of state rights, and I would have voted NO if I had known this was in there.”
This sentiment was echoed by other conservatives who believe that states, not the federal government, should be on the front lines of regulating the fast-moving technology.
A “Gift to Big Tech”?
The other major line of attack came from those who feared the moratorium would simply shield powerful tech companies from accountability. In a stunning reversal, Senator Blackburn, one of the original architects of the deal, withdrew her support, siding with the critics.
“This provision could allow Big Tech to continue to exploit kids, creators, and conservatives,” Blackburn said in a statement reported by the New York Post. She stated that while she appreciated the effort to create a uniform policy, “the current language is not acceptable.”
The collapse of the deal, detailed by Politico, now leaves the future of AI regulation in limbo. A revised amendment is reportedly in the works to strip the moratorium from the bill entirely, setting the stage for a new and even more complex debate over how to balance innovation with safety without trampling on the principles of federalism.
