Senate Kills 10-Year State-Level AI Ban Tucked In Trump's Budget Bill

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 core issue. Without any federal safeguards in place, the now-rejected ban would have restricted state legislators from addressing emerging harms, hallucinated outputs, biased algorithms or reckless applications of generative AI tools. In a field evolving faster than Washington can legislate, the power to act locally is essential.

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 was outspoken about it.

“The Senate did the right thing today for kids, for families and for our future by voting to remove the dangerous 10-year prohibition on state AI laws, which had no reason being included in a budget bill initially,” Steyer said in an email statement. “Senators listened to the growing and bipartisan wave of opposition that refused to be silenced, even as time ran short.”

He specifically mentioned names: Blackburn, Cantwell, Collins, Markey, Marshall, Blumenthal, Murkowski, Kim. These senators pushed hard to eliminate the measure. Others joined them. The result was a near-unanimous vote to erase the quasi-gag rule.

“Nearly three out of every four Americans want both the states and the federal government to make sure that fast-moving technology affecting our children and families is both advanced and secure," Steyer added. "The proposed ban that has now been eliminated would have prevented states from defending their citizens while providing nothing at all from the federal side. In the end, 99 senators voted to remove the language when just hours earlier it seemed like the moratorium might survive.”

It didn't survive. It fell under pressure. Pressure coming from parents, educators and public-interest watchdogs who see AI's rapid movement into schools, hospitals, courts and workplaces with minimal oversight.

The Larger Legislative AI Fight Isn’t Over

It’s important to remember that this vote didn’t establish any AI regulations—it only removed one obstacle. Federal lawmakers still haven’t passed any major laws governing artificial intelligence. Agencies are hurriedly issuing rules, but Congress continues to lag behind.

Advocates made their position clear: Don’t restrict those closest to the problems. Allow states to respond. Let them take the lead if Washington won’t.

“This is a win for everyone, but especially for every child growing up in today’s AI-driven world and every parent who wants to ensure their children’s safety. It also serves as a strong reminder that states must preserve their basic right to lead—on AI, social media, and other technologies. Common Sense Media remains dedicated to collaborating with lawmakers at all levels of government to create effective safeguards on AI that encourage innovation and build the digital future our children deserve,” concluded Steyer.

The ban is gone. The battle continues.

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