GOP Changes Provision on AI Regulation by States

Senate Republicans have made changes to their party's sweeping tax bill in hopes of preserving a new policy that would prevent states from regulating artificial intelligence for a decade. In legislative text unveiled Thursday night, Senate Republicans proposed denying states federal funding for broadband projects if they regulate AI. That's a change from a provision in the House-passed version of the tax overhaul that simply prohibited any current or future AI regulations by the states for 10 years, the AP reports.

The proposed ban has angered state lawmakers in Democratic- and Republican-led states and alarmed some digital safety advocates concerned about how AI will develop as the technology rapidly advances. Leading AI executives, including OpenAI's Sam Altman, have made the case to senators that a patchwork of state AI regulations would cripple innovation. Some House Republicans are also uneasy with the provision, per the AP. Rep. Marjorie Taylor Greene came out against the AI regulatory moratorium in the House bill after voting for it. She said she had not read that section of the bill. "We should be reducing federal power and preserving state power. Not the other way around," Greene wrote on social media.

Senate Republicans made their change in an attempt to follow the special process being used to pass the tax bill with a simple majority vote. To comply with those rules, any provision needs to deal primarily with the federal budget and not government policy. Republican leaders argue, essentially, that by setting conditions for states to receive certain federal appropriations—in this instance, funding for broadband internet infrastructure—they would meet the Senate's standard for a majority vote. Sen. Ted Cruz, chairman of the Commerce Committee, told reporters Thursday that he will make his case next week to Senate parliamentarian on why the revised ban satisfies the rules. The GOP legislation includes significant changes to how the federal government auctions commercial spectrum ranges. Those new provisions expand the range of spectrum available for commercial use, an issue that has divided lawmakers over how to balance questions of national security alongside providing telecommunications firms access to more frequencies for commercial wireless use.