WASHINGTON — Senate Republicans are making modifications to a comprehensive tax bill to safeguard a new policy aimed at preventing states from regulating artificial intelligence (AI) for the next ten years.
The revised legislative text, revealed on Thursday night, includes a proposal to withhold federal funding for broadband projects from states that impose their own AI regulations. This is a departure from the provision in the previously passed House version, which outright banned any state-level AI regulations for a decade.
“These provisions are aligned with the mandate bestowed upon President Trump and Congressional Republicans: to fully unlock the U.S. economic potential while securing the nation from adversaries,” stated Senator Ted Cruz, who heads the Senate Commerce Committee. Cruz announced the amendments, emphasizing their importance.
This proposed restriction has sparked discontent among legislators from both Democratic and Republican-led states, with concerns raised by digital safety advocates about the unchecked development of AI technology. On the other hand, leaders in the AI industry, such as OpenAI’s Sam Altman, have cautioned senators that inconsistent state regulations could stifle innovation.
Within the Republican Party, there is some dissatisfaction with this provision too. Georgia Representative Marjorie Taylor Greene expressed her opposition to the AI regulatory freeze in the House bill, despite having initially supported it. Greene admitted she had not reviewed that part of the legislation.
“We should focus on diminishing federal authority while enhancing state agency, not the reverse,” Greene remarked on social media.
Senate Republicans are refining the provision to fit the special process designed for passing the tax bill through a simple majority vote. To meet the criteria, all measures must primarily affect the federal budget rather than overarching government policy. Republican leaders maintain that by linking the allocation of federal broadband infrastructure funds to states’ adherence to specific conditions, they comply with the Senate’s rules for achieving a majority vote.
Cruz mentioned to the press on Thursday that he is set to advocate for the revised provision next week to the Senate parliamentarian, the advisor on legislative rules and procedures. Although the parliamentarian’s decisions are not mandatory, the Senate historically honors their interpretations.
A broader consensus within the Senate suggests Congress should spearhead efforts to regulate AI. However, differing priorities have so far hindered both parties from reaching a bipartisan agreement.
The Republican bill further proposes substantial changes in the federal procedure for auctioning commercial spectrum ranges. This includes expanding the spectrum spectrum’s availability for commercial purposes—a point of contention among lawmakers, who weigh national security concerns against increasing telecommunications firms’ access to new frequencies for commercial wireless operations.
Senators aim to advance the tax package by the end of the month. The proposal seeks to extend tax cuts from 2017, retain other tax breaks from President Donald Trump’s initial term, and introduce new tax reductions alongside significant cuts to social programs.