06/27/2025

Senators Push to Remove AI Provision from Senate Tax Bill

The House-passed version prohibited states from enforcing most AI laws for 10 years

Senators from both parties have raised concerns with a proposed moratorium on state and local artificial intelligence (AI) laws in the reconciliation bill that Senate leaders are working to pass by July 4, 2025.

The House-passed version of the bill would prohibit states from enforcing most AI laws for 10 years. The Senate version requires states to comply with the AI moratorium as a condition of receiving internet expansion grant money.

Senate Parliamentarian Elizabeth MacDonough has ruled that the Senate provision satisfies the Byrd rule, allowing its inclusion in budget-related legislation.

However, GOP opposition to the provision is getting louder. Sens. Marsha Blackburn (R-TN), Rand Paul (R-KY) and Josh Hawley (R-MO) wrote to Senate Majority Leader John Thune (R-SD) this week asking him to pull the AI provision from the bill text.

Blackburn is worried specifically about preserving Tennessee’s laws on AI and likeness rights, according to Punchbowl News.

On the Democratic side, Sen. Maria Cantwell (WA) is reportedly working with Blackburn to co-sponsor an amendment to strike the provision when the bill reaches the Senate floor.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.