Senate removes ban on state AI regulations from Trump's tax bill

Until now, the Trump administration's tax bill -- also called its "big, beautiful bill," which passed in the Senate on Tuesday -- included a rule that would prevent states from enforcing their own AI legislation for five years, and would withhold up to $500 million in funding for AI infrastructure if states don't comply. 

On Tuesday, a day into a "vote-o-rama" that began Monday in an effort to pass Trump's tax bill before the July 4 holiday, the Senate voted 99 to one to remove the proposed moratorium on states' ability to regulate AI. The vote came just days after senators had amended the original proposal of a 10-year ban on enforcement to five years and added exemptions for state laws targeting unfair or deceptive practices and child sexual abuse material (CSAM). 

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