AI Regulation Moratorium

Extracted Attributes

• Type

  Proposed 10-year ban on AI regulation

• Scope

  State-level AI regulation

• Outcome

  Removed from the 'Big Beautiful Bill' in the US Senate

• Opponents

  State lawmakers, AI researchers, tech workers, academics, advocacy groups, state regulators

• Purpose (proposed)

  Prevent regulatory patchwork, promote innovation

• Legislative Context

  Initially part of the 'Big Beautiful Bill'

• Proponents (of similar ideas)

  Senator Ted Cruz

Timeline

• Senator Ted Cruz announced plans to include a ten-year moratorium on state and local AI laws and regulations as part of a larger AI policy bill. (Source: web_search_results)

  2025-05-15

• The US House of Representatives passed a version of the 'Big Beautiful Bill' that included a 10-year moratorium on state AI regulation. (Source: web_search_results)

  2025-05-22

• The US Senate voted to remove the 10-year moratorium on state artificial intelligence regulations from the 'Big Beautiful Bill'. (Source: web_search_results)

  2025-07-01

Regulation of artificial intelligence

Regulation of artificial intelligence is the development of public sector policies and laws for promoting and regulating artificial intelligence (AI). It is part of the broader regulation of algorithms. The regulatory and policy landscape for AI is an emerging issue in jurisdictions worldwide, including for international organizations without direct enforcement power like the IEEE or the OECD. Since 2016, numerous AI ethics guidelines have been published in order to maintain social control over the technology. Regulation is deemed necessary to both foster AI innovation and manage associated risks. Furthermore, organizations deploying AI have a central role to play in creating and implementing trustworthy AI, adhering to established principles, and taking accountability for mitigating risks. Regulating AI through mechanisms such as review boards can also be seen as social means to approach the AI control problem.

Web Search Results

• Ten-year moratorium on AI regulation proposed in US Congress

  Critics of the moratorium, including a group of state lawmakers and AI researchers, have argued that the moratorium would prevent states from being able to enforce existing key AI regulations, including those prohibiting deepfakes in election campaigns and safeguarding against automated decision-making. Such positions include the argument that a moratorium of this nature would be in contravention of the 10th Amendment on the basis that Congress does not have the power to act in this way. Others [...] , titled “Moratorium,” states that, subject to limited exceptions, _“no state or political subdivision may enforce, during the 10-year period beginning on the date of the enactment of [the moratorium] any law or regulation limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce.”_ [...] Even if the moratorium language is removed from the budget reconciliation because of the Byrd Rule, some congressional Republicans have signaled their intention to pursue a moratorium by other legislative means. On May 15, 2025, Senator Ted Cruz (R-TX) announced his plans to include a ten-year moratorium on state and local AI laws and regulations as part of a larger AI policy bill he intends to introduce in the near future. Senator Cruz chairs the Senate Commerce Committee, which has

• US Senate votes to strike controversial AI regulation moratorium ...

  The US Senate has voted nearly unanimously to remove a 10-year moratorium on the enforcement of state artificial intelligence regulations from Republicans’ sweeping domestic policy bill. [...] While some tech leaders have advocated for a single federal law rather than a patchwork of state regulations, the moratorium had raised alarms among other tech workers and leaders, academics, advocacy groups, state regulators and lawmakers. Opponents of the provision worried that it could hamstring efforts to hold tech companies accountable for potential harms to society, especially in light of the fact that there is currently no comprehensive federal legislation regulating AI. [...] ### CNN values your feedback Markets Hot Stocks Fear & Greed Index Latest Market News Hot Stocks # US Senate votes to strike controversial AI regulation moratorium from Trump agenda bill Clare Duffy Follow: The Senate voted to remove a provision of the domestic policy bill that would have put a moratorium on AI regulation.

• No state AI law moratorium in One Big Beautiful Bill Act

  The version of the bill passed by the US House of Representatives on May 22, 2025, would have placed a 10-year moratorium on any state enforcing any law or regulation affecting “artificial intelligence models,” “artificial intelligence systems,” or “automated decision systems,” in an effort to remove legal impediments to the deployment or operation of AI. [...] With the moratorium failing to pass and little indication of federal interest in meaningful AI regulation, state AI regulation is likely here to stay. According to the National Conference of State Legislatures, as of 2025 all 50 states, Puerto Rico, the Virgin Islands, and Washington, DC, have introduced legislation to regulate AI. Significant state AI legislation will go into effect in 2026, including: [...] ### What’s next? AI developers and deployers should pay close attention to both state and federal action in the coming years. While the moratorium failed, there is bipartisan support for safety and privacy regulation of AI, and that likely will continue to grow in the years to come. \ \ \ To discuss the potential legal implications of state AI regulation for your business, reach out to one of the authors of this article or your regular McDermott lawyer. ## Stay Connected

• States Can Continue Regulating AI—For Now

  The House-passed AI moratorium would have barred states and localities from enforcing any law or regulation targeting “artificial intelligence models,” “AI systems” or “automated decision systems” for 10 years. While pitched as a way to prevent a regulatory patchwork and promote innovation, the broad definitions raised serious concerns about scope and impact. [...] For businesses, this development means that state-level AI regulation remains valid and enforceable, that compliance strategies must continue to account for varying and evolving state laws and that companies must monitor legislative developments and engage early in the policy process. While some businesses may have hoped for a federal moratorium to simplify compliance, the defeat of the provision may actually eliminate some legal uncertainty. The original language’s vague “undue burden” clause [...] This likely won’t be Congress’ last attempt to assert federal control over AI policy. An industry push is likely for a standalone federal bill enacting a moratorium or passing a set of national standards, among other possibilities. But for now, the regulatory playing field remains squarely in the hands of states and local governments that are moving quickly in the absence of federal action, while the lobbying efforts by tech, business, AI advocates, consumer advocates, and labor organizations

• Federal AI Moratorium Out, State AI Regulation Gold Rush In

  Alert May 22, 2025 ### House Passes 10-Year Federal Moratorium on State AI Regulation: Key Implications for Businesses Insight May 15, 2025 ### The Rise of Agentic AI: From Conversation to Action [...] Share The AI moratorium would have stopped in their tracks more than 1,000 AI regulatory bills that have been making their way through the legislative processes in state capitals since January—a legislative tsunami that amounts to half a dozen new AI-related proposals every single day. The frenzied legislative activity in 2025 follows a year in which 45 states considered nearly 700 AI bills, with about 20% becoming law.