AI moratorium could return despite removal from reconciliation bill

(Igor Omilaev / Unsplash)

By Chris Teale • Jul 08, 2025

Government leaders and some outside groups took a victory lap after the Senate removed a provision from the recently passed reconciliation bill that would have prevented states from regulating artificial intelligence for 10 years. But experts warned that another attempt at a moratorium could be on the horizon.

Senators voted 99-1 to amend the so-called “Big, Beautiful Bill” to remove the provision as they finalized legislation to advance much of President Donald Trump’s legislative agenda. The House had inserted the moratorium as part of its negotiations and passed it, although it quickly attracted bipartisan criticism before its removal in the Senate. The House then passed the Senate’s version, without the moratorium, before the July 4 holiday.

“We applaud the Senate’s extraordinary 99-1 vote to strip the AI moratorium from the reconciliation bill,” National Conference of State Legislatures President and Utah Senate President Pro Tempore Wayne Harper; President-Elect and Illinois Assistant Majority Leader Marcus Evans; Vice President and Montana Senate Majority Whip Barry Usher; and President Emeritus and Rhode Island Speaker Pro Tempore Brian Patrick Kennedy said in a joint statement. “This action sends a strong message that states will stay on the front lines in safely advancing AI innovations while protecting our constituents.”