Two key Republican senators have reached an agreement on a new federal moratorium that limits state regulations on artificial intelligence (AI) to five years. This deal also lets states set rules on child online safety and protect artists’ voices and likenesses.
The original proposal, led by Senator Ted Cruz, aimed to block states that regulate AI from accessing a larger $42 billion broadband infrastructure fund. The updated plan now restricts states only from tapping into a smaller $500 million fund dedicated to AI infrastructure.
Senator Marsha Blackburn, who initially criticized the moratorium, helped shape the compromise. The revised measure cuts the original 10-year pause in half and allows states to act on issues such as safeguarding artists from unauthorized AI-generated imitations and protecting children online, as long as the rules don’t place a heavy burden on AI development.
Some states have already taken steps to regulate AI in these areas. Tennessee passed the ELVIS Act to protect musicians from having their voices or images used without permission to create fake AI works. Texas passed laws banning AI use in creating child pornography or encouraging self-harm or criminal acts.
Despite these concessions, some doubt the changes will satisfy everyone. Recently, 17 Republican governors sent a letter urging the Senate to drop the AI moratorium plan entirely. Arkansas Governor Sarah Huckabee Sanders, leading the group, said states should keep the power to protect their citizens and serve as “laboratories of democracy.”
U.S. Commerce Secretary Howard Lutnick supports the revised moratorium and called it a practical step forward. In contrast, Senate Commerce Committee’s top Democrat, Maria Cantwell, criticized the agreed amendment. She said it doesn’t actually protect children or consumers and just benefits tech companies. Cantwell also warned that Lutnick could still withhold internet funding from states that don’t comply with the moratorium.
Congress has struggled for years to pass meaningful laws on AI safety and regulation. This latest compromise shows the ongoing challenge of balancing innovation, state rights, and consumer protections in the fast-moving world of artificial intelligence.