AI moratorium

Blackburn, Cruz find potential truce on state AI moratorium, child online safety

An amendment would add notable exceptions to the GOP’s prohibition on state AI laws.

Mohar Chatterjee

Commerce Chair Ted Cruz (R-Texas) and Sen. Marsha Blackburn (R-Tenn.) are planning to pitch significant changes to a state AI moratorium in the Republican megabill that has split the conference and alarmed GOP governors.

The pair, who have publicly championed opposing views on the potential ban, have reached a deal that would cut the proposed 10-year moratorium in half and make accommodations for internet protections, according to a draft amendment obtained by POLITICO.

Their amendment preserves the core prohibitions on enacting or enforcing any state or local laws that limit, restrict or otherwise regulate AI models, AI systems and automated decision-making systems, but adds notable exceptions. Under the new language, states would retain authority to enact or enforce laws focused on child online safety and protecting individuals’ names, images and likenesses — provided the regulation does not address AI systems with “undue or disproportionate burden.”

“To ensure we do not decimate the progress states like Tennessee have made to stand in the gap, I am pleased Chairman Cruz has agreed to update the AI provision to exempt state laws that protect kids, creators, and other vulnerable individuals from the unintended consequences of AI,” Blackburn, who has been critical of having a state AI moratorium, said in a statement.

The language isn’t expected to be on the floor as a standalone amendment to the reconciliation bill. Instead, it is more likely a part of a broader manager’s amendment alongside multiple changes.

The provision remains tied to $500 million in funding for AI deployment within the broadband program. States and localities that want to receive the funds would be required to comply with the moratorium.

The move follows pressure from 17 GOP governors, who sent a letter to Senate Majority Leader John Thune on Friday urging him to eliminate the moratorium, citing concerns over federal overreach and the chilling effect on regulation to prevent the misuse of AI.