While President Donald Trump’s sweeping economic bill cleared the Senate on Tuesday, a 10-year federal ban that would have stopped states from passing their own laws on artificial intelligence is dead. The pro-Big Tech provision was tucked inside the policy bill that Trump has been driving for weeks. Now the AI legislative ban is gone.
The Senate voted 99-1 Tuesday morning to kill the moratorium after a last-minute uproar from advocacy groups, lawmakers and tens of thousands of Americans who saw it as a dangerous overreach. They didn’t stay quiet. The Senate listened.
States Keep The Right To Legislate AI
The removed provision would have blocked any state-level regulation of AI systems for the next decade. It offered no federal protections in return. Just a blanket freeze. No rules. No recourse.
Consumer Reports had been fighting the provision since May, when the bill first appeared. The consumer advocacy publication launched a public petition, urging senators to strike the AI amendment from the final bill. Nearly 80,000 people sent emails demanding its removal.
“We are pleased with the bipartisan vote to reject the 10-year moratorium on states regulating AI,” said Grace Gedye, policy analyst for AI issues at Consumer Reports in a public statement. “Congress should not prohibit states from protecting their residents when it comes to AI — especially without offering any alternative protections.”
“States have led the way on bringing transparency to flawed AI decision systems and protecting consumers. Future legislation from Congress should not undermine state efforts, it should complement existing laws and learn from the laboratories of democracy.”
That’s the crux of it. Without any federal guardrails in place, the now-rejected ban would have handcuffed state lawmakers from acting on emerging harms, hallucinated outputs, biased algorithms or reckless uses of generative AI tools. In a field changing faster than Washington can legislate, the ability to act locally is critical.
Why AI Matters To Both Policymakers And Parents
James P. Steyer, founder and CEO of pro-family consumer group Common Sense Media, called it a win for kids, families and the future. He didn’t hold back.
“The Senate did the right thing today for kids, for families and for our future by voting to strip out the dangerous 10-year ban on state AI laws, which had no business being in a budget bill in the first place,” Steyer said in an email statement. “Senators listened to the rising and bipartisan chorus of opposition that refused to go silent, even as the hour grew late.”
He named names. Blackburn. Cantwell. Collins. Markey. Marshall. Blumenthal. Murkowski. Kim. The senators all pushed to scrap the measure. Others followed. The result was a near-unanimous vote to eliminate the quasi-gag order.
“Nearly three-quarters of Americans want both the states and the federal government to ensure that fast-moving technology in our kids’ and families’ lives is both cutting-edge and safe,” Steyer added. “The proposed ban that has now been removed would have stopped states from protecting their residents while offering nothing in return at the federal level. In the end, 99 senators voted to strip the language out when just hours earlier it looked like the moratorium might have survived.”
It didn’t survive. It collapsed under pressure. Pressure that came from parents, educators and public-interest watchdogs who see AI’s bold advance into classrooms, hospitals, courts and workplaces with little oversight.
The Larger Legislative AI Fight Isn’t Over
It’s important to note that this vote didn’t regulate AI, it just removed one roadblock. Federal lawmakers still haven’t passed any meaningful laws governing artificial intelligence. Agencies are scrambling to respond with rules, but Congress has been slow to act.
The message from advocates is clear: Don’t tie the hands of the people closest to the fallout. Let states respond. Let them lead if Washington won’t.
“This is a victory for everyone, but especially every child growing up in today’s AI-powered world and every parent who wants nothing more than to ensure their kids are safe. It’s also a stark reminder that states must retain their fundamental right to lead — on AI, social media and other technology. Common Sense Media remains committed to working with lawmakers at every level of government to establish meaningful safeguards on AI that allow for innovation and build the digital future our children deserve,” concluded Steyer.
The ban is gone. The fight is still on.