- July 2, 2025
Senate Votes 99-1 To Remove AI Moratorium From Budget in Major Blow to Big Tech and Sen. Cruz

WASHINGTON, D.C. — In a resounding defeat for Big Tech lobbyists and Sen. Ted Cruz (R-Texas), the Senate voted 99–1 to strip a sweeping artificial intelligence (AI) moratorium from the Republican megabill — handing a major victory to consumer advocates, civil rights groups, state lawmakers, and parents across the country.
The amendment, championed by Cruz, would have blocked state and local governments from enforcing most AI regulations for years, undermining bipartisan state efforts to combat rapidly evolving AI threats. But the provision had drawn intense opposition from an ideologically diverse coalition, including 40 state attorneys general, 260 state lawmakers, faith leaders, and more than 130 advocacy groups. Conservative governors, child safety experts, and Democratic senators alike raised alarms that the proposal would invalidate state laws already passed to protect children, consumers, workers, and creators.
“From the start, this provision had Big Tech’s money and lobbyists all over it. This is a major victory for the American people over the AI industry. It shows that Americans are aware of the proliferation of AI harms in real time,” said J.B. Branch, Big Tech Accountability Advocate at Public Citizen. “Now that the Senate has removed this dangerous preemption, they must turn to fighting the rest of this big ugly budget bill, which harms regular Americans in myriad ways. Congress should also get to work enacting strong, enforceable AI legislation that sets a federal floor to protect consumers, workers, and creators from the real harms AI poses to public safety while allowing states breathing room to quickly respond to AI harms as they evolve.”
“State legislatures all across the country have done critical bipartisan work to protect the American people from some of the most dangerous harms of AI technology. They have worked thoughtfully to address their constituents’ concerns on this issue while Congress has struggled to do almost anything,” said Ilana Beller, Democracy Organizing Manager at Public Citizen. “The defeat of this moratorium will mean vital protections remain in place for millions of Americans.”