Senate Kills AI Moratorium in Trump’s ‘Big Beautiful Bill’

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Trump’s nationalist mega-bill just got a haircut.

The Senate voted 99–1 to gut a key provision that would’ve blocked states from passing their own AI laws. That means **California, Utah, Tennessee, New York—**any state—can regulate AI however the hell they want.

The original draft threatened to withhold federal funds from states that touched AI. Now? That threat’s dead. And the patchwork lives.

The Vote

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Senate: 99–1

The upper chamber torched the AI moratorium provision. It would’ve blocked states from passing AI laws for up to a decade.

What It Would’ve Done

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The original bill threatened to withhold broadband and infrastructure funds from states that passed their own AI rules. That’s dead now.

What It Means Now

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  • States keep control
  • Big Tech loses protection
  • Legal chaos incoming

States can go full steam ahead on AI guardrails—from transparency to deepfake bans.

Tennessee

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ELVIS Act

Illegal to use someone’s voice or likeness without consent. First major law to take on AI voice cloning.

Utah

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AI Policy Act

Requires disclosure of AI use. Lets people sue over AI-related harm. Creates an enforcement office.

California

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  • Tried to regulate powerful AI models.
  • SB 1047 passed — but Newsom vetoed it.
  • Expect them to try again.

Montana and Alabama

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Montana: No AI for government surveillance or political influence.

Alabama: Criminalizes AI deepfakes in campaigns — no synthetic slander allowed.

What’s Coming Next

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      • House vote: Trump wants it done by July 4
      • More state laws — fast
      • Pressure builds for a federal standard

Bottom Line

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Trump’s bill moves forward, but the AI gag is gone. States are in charge — and the patchwork is real.

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