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Technology

States can still pass AI regulations, a ‘big, beautiful bill’ win for child safety advocates

The Senate stripped a controversial provision from the bill — a move praised by those who say tech companies shouldn't be shielded from accountability.

Capitol building against a blue sky with binary code on top of it.
A bi-partisan vote removed a provision in what Trump is calling the "Big Beautiful Bill" that would ban states from regulating artificial intelligence. (The 19th; Jim WATSON/AFP/Getty Images)

Jasmine Mithani

Interim Data and Technology Reporter

Published

2025-07-01 13:16
1:16
July 1, 2025
pm

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In a notable sign of bipartisan agreement, the Senate voted 99-1 on Tuesday to remove from the president’s massive policy agenda bill a provision banning states from regulating artificial intelligence for at least five years, broadly seen as a win for child safety and marginalized people online. 

The moratorium, originally proposed for 10 years, had received significant pushback from parent advocates, tech policy think tanks and state legislators across the country because they felt it put corporate interests over the well-being of Americans. 

“The Senate did the right thing today for kids, for families, and for our future,” said James P. Steyer, founder and CEO of nonpartisan nonprofit Common Sense Media, in a statement. “This is a victory for everyone, but especially every child growing up in today’s AI-powered world and every parent who wants nothing more than to ensure their kids are safe.”

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Republican Sen. Ted Cruz of Texas, who chairs the Committee on Commerce, Science, and Transportation, introduced the proposal. Sen. Marsha Blackburn, a Tennessee Republican and co-sponsor of the Kids Online Safety Act, then brokered a deal over the weekend to lower the pause on state-based regulation to five years. Early on Tuesday, during a marathon of negotiations, she introduced an amendment striking the clause completely.

“Until Congress passes federally preemptive legislation like the Kids Online Safety Act and an online privacy framework, we can’t block states from making laws that protect their citizens,” Blackburn said in a statement.

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State legislatures are at the forefront of enacting policies to address rising rates of deepfake abuse and self-harm risks from AI chatbots, passing legislation more quickly and responding faster to evolving threats. The federal Take It Down Act, passed earlier this year, made the publishing of nonconsensual sexually explicit media, including AI-generated depictions, illegal on the heels of similar laws in 49 states and the District of Columbia. 

The moratorium could have jeopardized legislation like California’s SB 234, a bill proposing safeguards for AI chatbots introduced this session. Regulation of AI chatbots and personality-driven “AI companions” has become a priority for child safety advocates after a Florida teen died by suicide after an intense relationship with a chatbot who told him, when discussing the topic, “That’s not a good reason to not go through with it.”

The idea of federal pre-emption of state AI regulations was opposed across the political spectrum, with groups ranging from the Heritage Foundation, one of the architects of Project 2025, to the Rape, Abuse, and Incest National Network voicing concerns.

The provision nixed in the Senate version of the bill was supported by the Trump administration, and heavily advocated for by venture capitalist firms Andreessen Horowitz and Open AI, the creator of ChatGPT. Proponents argued that the patchwork of state regulations stymies innovation.

While the Senate defeat was a resounding rebuke, the unchanged bill must return to the House for final approval. 

If you or a loved one are in crisis, please call the National Suicide Prevention Lifeline at 1-800-273-TALK (8255), or contact the Crisis Text Line by texting TALK to 74174.

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