The U.S. Senate voted early Tuesday to remove a proposed moratorium from the federal budget bill. This outcome marks a pivotal moment in the ongoing debate over artificial intelligence regulation in the United States.

The AI moratorium, initially proposed as part of the One Big Beautiful Bill Act, proposed a 10-year moratorium on the enforcement of AI-related legislation by states or other entities. Specifically, it was designed to restrict the regulation of AI models, systems, or automated decision systems involved in interstate commerce.

The provision faced strong bipartisan opposition, with critics warning that it would leave consumers vulnerable to AI-related harm and undermine state-level consumer protection laws.

After extensive negotiations and public outcry, an amendment to strip the provision from the budget bill was introduced. The Senate voted overwhelmingly in favor of the amendment, thus ending the moratorium effort.

Support for the removal was partially based on states having the ability to enforce their own AI regulations, particularly in areas such as robocalls, deepfakes, and autonomous vehicles. Currently, several state and local jurisdictions have AI protections planned or already in place.

These developments also reflect a growing recognition of the complexities and potential risks associated with AI technologies. Both the federal government and states will likely be grappling with balancing regulation with innovation when it comes to AI for the foreseeable future.

Jackson Lewis will continue to monitor legislative developments related to AI and related technologies.