In a decisive 99–1 vote, the U.S. Senate has removed a controversial provision from a reconciliation bill that would have blocked states from regulating artificial intelligence for a decade. Originally introduced by Sen. Ted Cruz (R-TX) and backed by key tech figures including OpenAI’s Sam Altman, Anduril’s Palmer Luckey, and a16z’s Marc Andreessen, the measure aimed to prevent a fragmented regulatory landscape across the U.S.
The proposal faced strong bipartisan opposition, with lawmakers warning it would leave AI companies unchecked and undermine consumer protections. After last-minute negotiations failed, Senators Marsha Blackburn (R-TN) and Maria Cantwell (D-WA) led the successful effort to eliminate the moratorium, preserving state-level oversight of emerging AI technologies.
