Diving briefs:
The Senate on Tuesday passed a massive tax cut and spending bill after halting artificial intelligence regulations at the state level for 10 years after stripping the language.
The AI provision was removed by 99-1 votes before sunrise, with Sen. Tom Tillis (RN.C.) opposed. The vote fell apart after R-Texas Senate President Ted Cruz worked to create a language of compromise in a five-year suspension.
“The Senate came together to say we can’t run a good state consumer protection law,” said D-Wash, a ranking member of the Commerce Committee. Senator Maria Cantwell said in a statement posted to X.
Dive Insights:
Under pressure from Trump, Senate and House Republican leaders are competing to cross the finish line and win the law by the July 4th holiday.
In May, the House narrowly passed a version of the bill with a provision that would freeze state AI regulations for 10 years. The two parliamentary rooms must resolve the differences between their versions before the bill reaches the president’s desk for his signature.
The Senate bill won between 51 and 50 votes, with all but three Republicans supporting the measure. Vice President JD Vance voted for a tiebreak.
Prior to the vote, Cruz failed to enhance his support for the compromised AI language. He agreed to reduce the proposed moratorium period to five years instead of ten. He also agreed to exempt certain laws from suspension, including laws designed to regulate deceptive behavior and practices, the safety of children online, and protection of persons’ names, images, voices or similarities.
On Monday morning, U.S. Secretary of Commerce Howard Lutnick praised the updated language, calling it a “practical compromise” between R-Tenn’s Cruz and Sen. Marsha Blackburn.
However, in a surprising move, Blackburn later rejected the provision of compromise, saying it was still “unacceptable.” She said, “it would allow big technology to continue to exploit children, creators and conservatives.”
