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Senate Unanimously Strikes Down 10‑Year Ban on State AI Regulation in Major Budget Bill

Press Release

FOR IMMEDIATE RELEASE

July 2, 2025

Washington, D.C. – RegulatingAI commends the U.S. Senate’s overwhelming 99–1 vote to strike a proposed 10‑year federal ban on state-level regulation of artificial intelligence (AI) from the recent tax and spending legislation.

The amendment, introduced during final deliberations, ensures that states maintain the authority to implement AI regulations addressing emerging challenges in areas such as child safety, employment practices, and the rights of creators. The decision reinforces the importance of state-level innovation and responsiveness in addressing rapidly evolving AI technologies.

This landmark vote sends a strong message that responsible AI development must remain rooted in transparency, accountability, and flexibility. As AI systems become more pervasive in public and private life, governments at all levels must be empowered to respond swiftly to unintended harms, ensure civil liberties, and build public trust. Removing the moratorium allows states to serve as policy laboratories, advancing thoughtful regulations that may inform future federal standards.

The vote signals growing bipartisan consensus on the need for flexible, multi-tiered approaches to AI governance. It also underscores the role of local and state governments in closing regulatory gaps while federal frameworks are still under development.

RegulatingAI views this legislative action as a crucial step toward maintaining transparency, accountability, and ethical standards in the development and deployment of AI systems nationwide.

About RegulatingAI

RegulatingAI, an initiative of Knowledge Networks, is a non‑profit organization focused on promoting ethical AI governance. We empower regulators, industry leaders, and advocacy groups with the knowledge and tools necessary to shape the future of AI technologies, ensuring they are developed with trust and transparency.

Media Contact: 📧 upasana@regulatingai.org | upasana@knowledgenetworks.org