WASHINGTON: The fight over a proposed 10-year federal moratorium on state regulation of artificial intelligence heated up on Wednesday, with Republican and Democratic Senate leaders differing on whether such a measure would be tied to billions of dollars in funding to give rural communities access to broadband.
The proposed moratorium, part of President Donald Trump’s sweeping tax-cut and spending bill, faces mounting pressure from critics ahead of crucial votes by the U.S. Senate expected this week.
A previous version would have blocked states that regulate AI from the $42 billion Broadband Equity, Access, and Deployment program, known as BEAD.
Republican Senator Ted Cruz released an updated version on Wednesday, which he said would only restrict states that tap a new $500 million fund to support AI infrastructure.
Senator Maria Cantwell, senior Democrat on the Commerce committee, however, said the measure “continues to hold $42 billion in BEAD funding hostage, forcing states to choose between protecting consumers and expanding critical broadband infrastructure to rural communities.”
Proponents say the measure is necessary to lift the burden on companies of complying with laws that differ from state to state and boost U.S. dominance in AI. Critics say the measure erodes states’ rights and would erase state protections for creative workers and children online.
U.S. Commerce Secretary Howard Lutnick voiced his support for the measure in a post on social media site X, saying it would end “the chaos of 50 different state laws and makes sure American companies can develop cutting-edge tech for our military, infrastructure, and critical industries–without interference from anti-innovation politicians.”
A Commerce Department spokesperson did not immediately respond to a request for comment.
Earlier on Wednesday, the president of the International Brotherhood of Teamsters had called the measure “a disaster for communities and working people.”
Teamsters President Sean O’Brien, who spoke at the Republican National Convention last year, said in a letter posted on social media site X that the measure “denies citizens the ability to make choices at the local or state level.”
“Pure and simple, it is a giveaway to Big Tech companies who reap economic value by continuing to operate in an unregulated void where their decisions and behavior are accountable to no one,” he said.
The letter from the head of the Teamsters, a union representing more than 1.3 million workers, many of them in blue-collar jobs such as trucking, was the latest instance of criticism. Unions, state lawmakers and attorneys general, faith leaders and the conservative Heritage Foundation have all opposed the measure, as have at least three Senate Republicans.
