In Congress: New version of 10-year state AI law ban tied to broadband funding
Sen. Ted Cruz (R-TX) has proposed an amendment to the 10-year ban on state AI laws contained within the federal budget bill. (Photo: Getty Images for Unsplash+)
June 9, 2025 — Senate Republicans have proposed a change to their party’s sweeping tax bill in hopes of preserving a measure in the bill that would prevent states from regulating artificial intelligence for a decade.
In text unveiled Thursday night, Sen. Ted Cruz (R-TX), chair of the Senate Committee on Commerce, Science, and Transportation, 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 banned any current or future AI regulations by the states for 10 years.
As of Monday morning it remained unclear whether the original moratorium had been excised from the full budget bill, or whether both sections—the original 10-year ban plus the new broadband funding penalty—remain in play.
TCAI has a full guide to the proposed federal 10-year moratorium on state AI laws here.
Full text of proposed amendment
The following amendment was released by the U.S. Senate Committee on Commerce, Science, and Transportation on June 5, 2025.
TITLE l — COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
SEC. 0012. SUPPORT FOR ARTIFICIAL INTELLIGENCE UNDER THE BROADBAND EQUITY, ACCESS, AND DEPLOYMENT PROGRAM.
(a) IN GENERAL.—Section 60102 of division F of Public Law 117–58 (47 U.S.C. 1702) is amended—
(1) in subsection (a)(2)—
(A) by redesignating subparagraphs (B) through (N) as subparagraphs (F) through (R), respectively
(B) by redesignating subparagraph (A) as subparagraph (D);
(C) by inserting before subparagraph (D), as so redesignated, the following:
‘‘(A) ARTIFICIAL INTELLIGENCE.—The term ‘artificial intelligence’ has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).
‘‘(B) ARTIFICIAL INTELLIGENCE MODEL.— The term ‘artificial intelligence model’ means a software component of an information system that implements artificial intelligence technology and uses computational, statistical, or machine-learning techniques to produce outputs from a defined set of inputs.
‘‘(C) ARTIFICIAL INTELLIGENCE SYSTEM.—The term ‘artificial intelligence system’ means any data system, software, hardware, application, tool, or utility that operates, in whole or in part, using artificial intelligence.’’;
(D) by inserting after subparagraph (D), as so redesignated, the following:
‘‘(E) AUTOMATED DECISION SYSTEM.— The term ‘automated decision system’ means any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues a simplified output, including a score, classification, or recommendation, to materially influence or replace human decision making.’’; and (E) by striking subparagraph (O), as so redesignated, and inserting the following:
‘‘(O) PROJECT.—The term ‘project’ means an undertaking by a subgrantee under this section to construct and deploy infrastructure for the provision of—
‘‘(i) broadband service; or
‘‘(ii) artificial intelligence models, artificial intelligence systems, or automated decision systems.’’;
(2) in subsection (b), by adding at the end the following:
‘‘(5) APPROPRIATION FOR FISCAL YEAR 2025.— In addition to any amounts otherwise appropriated to the Program, there is appropriated to the Assistant Secretary for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended, to carry out the Program.’’;
(3) in subsection (f)—
(A) in paragraph (5), by striking ‘‘and’’ at the end;
(B) by redesignating paragraph (6) as paragraph (7); and
(C) by inserting after paragraph (5) the following:
‘‘(6) the construction and deployment of infrastructure for the provision of artificial intelligence models, artificial intelligence systems, or automated decision systems; and’’;
(4) in subsection (g)(3), by striking subparagraph (B) and inserting the following:
‘‘(B) may, in addition to other authority under applicable law, deobligate grant funds awarded to an eligible entity that—
‘‘(i) violates paragraph (2);
‘‘(ii) demonstrates an insufficient level of performance, or wasteful or fraudulent spending, as defined in advance by the Assistant Secretary; or
‘‘(iii) is not in compliance with subsection (q); and’’;
(5) in subsection (j)(1)—
(A) in subparagraph (A)—
(i) in clause (iii), by striking ‘‘and’’ at the end;
(ii) by redesignating clause (iv) as clause (v); and
(iii) by inserting after clause (iii) the following:
‘‘(iv) certifies that the eligible entity is in compliance with subsection (q); and
(6) by adding at the end the following:
‘‘(p) RECEIPT OF FUNDS CONDITIONED ON COMPLI25 ANCE WITH MORATORIUM.—On and after the date of enactment of this subsection, no amounts made available to carry out this section may be obligated to an eligible entity or a political subdivision thereof that is not in compliance with subsection (q).
‘‘(q) MORATORIUM.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), no eligible entity or political subdivision thereof may enforce, during the 10-year period beginning on the date of enactment of this subsection, any law or regulation of that eligible entity or a political subdivision thereof limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce.
‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1) may not be construed to prohibit the enforcement of any law or regulation—
‘‘(A) the primary purpose and effect of which is to—
‘‘(i) remove legal impediments to, or facilitate the deployment or operation of, an artificial intelligence model, artificial intelligence system, or automated decision system; or
‘‘(ii) streamline licensing, permitting, routing, zoning, procurement, or reporting procedures in a manner that facilitates the adoption of artificial intelligence models, artificial intelligence systems, or automated decision systems;
‘‘(B) that does not impose any substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirement on artificial intelligence models, artificial intelligence systems, or automated decision systems unless that requirement is imposed under—
‘‘(i) Federal law; or
‘‘(ii) a generally applicable law, such as a body of common law; and
‘‘(C) that does not impose a fee or bond unless—
‘‘(i) the fee or bond is reasonable and cost-based; and
‘‘(ii) under the fee or bond, artificial intelligence models, artificial intelligence systems, and automated decision systems are treated in the same manner as other models and systems that perform comparable functions.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
Section 60102(a)(1) of division F of Public Law 117–58 (47 U.S.C. 1702(a)(1)) is amended—
(1) in subparagraph (B), by striking ‘‘a project’’ and inserting ‘‘a project described in subsection (a)(2)(O)(i)’’; and
(2) in subparagraph (D), by striking ‘‘a project’’ and inserting ‘‘a project described in subsection (a)(2)(O)(i)’’.