Sen. Marsha Blackburn (R-Tenn.) said Sunday that she reached a deal with Senate Commerce Chair Ted Cruz (R-Texas) on new text for a provision in President Trump’s sweeping tax package that seeks to bar states from regulating artificial intelligence (AI).
The updated text would enact a “temporary pause,” banning states from regulating AI for five years if they want access to $500 million in AI infrastructure and deployment funding included in the bill. The original provision, which Blackburn opposed, sought to limit state legislation for a 10-year period.
It also includes new exemptions for state laws seeking to regulate unfair or deceptive practices, children’s online safety, child sexual abuse material and publicity rights.
“For decades, Congress has proven incapable of passing legislation to govern the virtual space and protect Americans from being exploited by Big Tech, and it’s why I continue to fight to pass federal protections for Tennesseans and Americans alike,” Blackburn said in a statement.
“To ensure we do not decimate the progress states like Tennessee have made to stand in the gap, I am pleased Chairman Cruz has agreed to update the AI provision to exempt state laws that protect kids, creators, and other vulnerable individuals from the unintended consequences of AI,” she continued.
Blackburn has been a key proponent of legislation seeking to protect kids online. She reintroduced the Kids Online Safety Act (KOSA) last month alongside Sen. Richard Blumenthal (D-Conn.), Senate Majority Leader John Thune (R-S.D.) and Senate Minority Leader Chuck Schumer (D-N.Y.).
“I look forward to working with him in the coming months to hold Big Tech accountable — including by passing the Kids Online Safety Act and an online privacy framework that gives consumers more power over their data,” she added. “It’s time to get the One Big Beautiful Bill Act to the President’s desk so we can deliver on our promise of enacting the America First agenda.”
It’s unclear whether Blackburn and Cruz’s deal on the AI provision will resolve the concerns of other lawmakers who have previously voiced opposition to the measure, including Sens. Ron Johnson (R-Wis.) and Josh Hawley (R-Mo.) and Rep. Marjorie Taylor Greene (R-Ga.).
The provision survived scrutiny from Senate Parliamentarian Elizabeth MacDonough last week, who ruled that the AI moratorium did not violate the Byrd rule and can remain in the reconciliation bill.
The Senate is expected to move forward with a series of votes on the package Monday morning, as they race to get the bill across the finish line before Trump’s self-imposed deadline of July 4.
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