Legislative Changes and Reactions
modified their tax bill to prevent states from regulating AI by proposing to deny federal broadband funding to states that impose such regulations, contrasting with the House version that outright banned state AI regulations for a decade.
This move has sparked backlash from state lawmakers across the political spectrum and raised concerns among digital safety advocates, while AI leaders argue against a fragmented state regulation approach.
Political Dynamics and Future Steps
Some House Republicans, including Rep. Marjorie Taylor Greene, oppose the AI regulatory moratorium, advocating for state power preservation over federal control.
Senate Republicans aim to pass the tax package, which includes extending 2017 rate cuts and sweeping social program cuts, later this month, with Sen. Cruz planning to argue the revised ban's compliance with Senate rules.