In a rare show of near-unanimous bipartisanship, the U.S. Senate has voted 99–1 to remove a contentious provision backed by Senator Ted Cruz that sought to block state-level regulation of artificial intelligence (AI). The measure had been embedded within a broader domestic policy bill supported by the Trump administration.

Senator Cruz, a Texas Republican, was forced to vote in favour of striking his own amendment after it became evident that opposition within both parties—and across the political spectrum—had rendered the proposal untenable.

The amendment would have barred states from accessing billions in federal broadband funding if they enacted laws governing AI applications, including restrictions on deepfakes, automated surveillance, algorithmic bias, and other areas of concern. Cruz later offered to scale back the proposal by limiting the restriction to five years and reducing the funding penalty, but the core framework tying federal funds to AI regulation remained intact.

Pushback Across Party Lines

Democrats and Republicans alike criticised the provision as an overreach that would stifle state autonomy and embolden tech companies to resist accountability. Senator Maria Cantwell (D-Washington), who led the effort to strike the provision, warned that the measure would have amounted to “a new legal shield for Big Tech” and undermined state consumer protection laws.

“It was a wolf in sheep’s clothing,” said Senator Ed Markey (D-Massachusetts), cautioning that the language would have allowed the federal government to penalise states attempting to regulate the social and economic risks posed by AI systems.

Conservative lawmakers also expressed concern. Senator Marsha Blackburn (R-Tennessee), who initially entertained a compromise, ultimately sided with Cantwell, citing the importance of preserving states’ rights to protect consumers—particularly minors—from exploitative technologies.

“Until Congress passes comprehensive online safety and data privacy legislation, we cannot pre-empt states from stepping in,” Blackburn stated.

Cruz Concedes Amid Political Realities

Under mounting bipartisan pressure, Cruz abandoned his defense of the proposal, blaming “outside interests” for derailing what he described as a well-intentioned effort to pause premature regulation. He insisted the measure had White House backing and was designed to support children and content creators. Critics, however, accused him of shielding Silicon Valley from scrutiny.

The final vote left Senator Thom Tillis (R-North Carolina) as the lone supporter of the provision. Ironically, the amendment’s demise coincided with Texas—Cruz’s home state—enacting its own AI legislation, weakening his argument that states were unprepared to legislate on emerging technologies.

Broad Coalition Opposed the Measure

The resistance extended beyond the Senate. Cantwell’s office reported unified opposition from 17 Republican governors, 40 state attorneys general, and influential policy groups from both the left and right, including the Heritage Foundation and the Center for American Progress.

The proposed restriction also threatened to undermine regulatory efforts already underway. In 2023 alone, at least 24 states introduced or passed legislation addressing AI’s use in surveillance, employment, consumer protection, and civil rights.

“This was not just a policy disagreement—it was a fundamental question of whether states have the right to protect their residents in the absence of federal action,” said Cantwell after the vote.

What Comes Next?

With the Cruz amendment removed, the broader domestic policy bill continues to move forward in Congress. However, the episode has intensified calls for a dedicated, transparent debate on federal AI regulation. Lawmakers from both parties emphasised that any national framework must be developed through open deliberation—not appended to unrelated legislation.

“The Senate has sent a clear message,” Cantwell said. “We can’t sideline consumer protection in the name of innovation. States have a vital role to play until Congress adopts a comprehensive, balanced AI policy.”