Senate Moratorium on Enforcing AI Laws Sparks Debate Over Funding Scope

The Senate Commerce Committee is under scrutiny over its 10-year moratorium on enforcing state artificial intelligence laws, with some lawmakers arguing that it would still impact $42 billion in broadband funding.

According to Ranking Member Maria Cantwell, the Senate parliamentarian has requested changes to the language in the GOP megabill to clarify this. Commerce Chair Ted Cruz has stated that the moratorium would be required for states to tap into a new $500 million fund for building out AI infrastructure, but Democrats claim it would still affect all $42 billion.

The issue remains unclear, with some Republicans arguing that the provision only applies to the unobligated $500 million. However, Majority Leader John Thune has stated that the GOP will not seek to override decisions from the Senate’s rules referee.

Some lawmakers, including Sens. Marsha Blackburn and Kevin Cramer, have expressed concerns over the scope of the provision and need for clarity on its application to the entire broadband program. The National Venture Capital Association has strongly supported the moratorium, stating that it would help alleviate unnecessary challenges for startups and preserve innovation in the industry.

The debate highlights a deep divide within the Senate over the role of AI regulation and funding, with some lawmakers pushing back against what they see as overly restrictive measures.

Source: https://www.politico.com/live-updates/2025/06/26/congress/senate-banking-republicans-cfpb-megabill-reconciliation-00427171