Because Why Regulate AI When You Can Let It Run Wild for 10 Years? Congress Thinks That’s Genius

A sweeping federal proposal could block states from regulating artificial intelligence for a decade, essentially handing the reins of AI oversight to tech giants with little to no accountability.

Spearheaded by Sen. Ted Cruz, the “AI moratorium” is buried deep inside a Republican-led megabill set for a Senate vote just in time for the July 4 celebration of… deregulation.

Backers of the plan, including tech bros from OpenAI, Anduril, and Andreessen Horowitz, claim that a state-by-state patchwork of laws would slow down U.S. innovation and allow China to win the AI arms race.

Meanwhile, critics from across the political spectrum — including other Republicans, AI safety experts, consumer watchdogs, and labor groups — warn the measure guts states’ ability to protect the public from deepfakes, fraud, and algorithmic discrimination.

The bill would override existing state AI laws like California’s transparency-focused AB 2013 and Tennessee’s ELVIS Act protecting artists from synthetic impersonations.

Even states that criminalized election interference via AI, like Alabama and Texas, would lose enforcement power under the proposed moratorium.

To sneak the measure into the budget, Cruz tied compliance to a $42 billion broadband grant program, threatening to withhold infrastructure funds from states that dare to regulate AI.

Despite earlier procedural approval, new pushback has emerged, with Republicans like Sen. Josh Hawley and Rep. Marjorie Taylor Greene now siding with Democrats to strip the moratorium.

New York’s pending RAISE Act and other state-level AI safety bills could be axed before they even launch if the moratorium passes.

Tech companies pushing the bill have yet to name a single state law that’s actually hindered their innovation, but are absolutely certain regulation is just too hard.

Polls show most Americans want more AI regulation, not less, though apparently that’s not on Congress’ vision board.

The Senate is expected to vote soon, followed by a chaotic amendment spree where lawmakers will either gut the moratorium — or gift-wrap AI’s regulatory free-for-all for the next ten years.