US Senate Rejects AI State Law Freeze, Rules Remain For Radio

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A proposed federal pause on state-level artificial intelligence regulations that would have impacted broadcasters was stripped from the GOP’s budget reconciliation bill early Tuesday morning after failing to gain sufficient support in the Senate’s extended “vote-a-rama.”

In a 99-1 vote, the US Senate adopted an amendment from Senator Marsha Blackburn (R-TN) striking a 10-year federal moratorium on state-level AI laws from President Donald Trump’s sweeping tax and spending bill.

The removed provision would have tied access to a new $500 million AI infrastructure fund to a requirement that states refrain from passing or enforcing AI regulations for a decade.

The final amendment marked a significant shift in Blackburn’s position. On Sunday, she and Senate Commerce Chair Ted Cruz (R-TX) reached a deal to reduce the “pause” from ten years to five and introduce carve-outs for state laws addressing child safety, deceptive practices, and the unauthorized use of name, image, voice, or likeness. However, under pressure from critics, Blackburn reversed course and introduced a full repeal amendment on Monday, which passed with near-unanimous support.

While Cruz and other backers of the original moratorium warned that state-by-state AI rules could hinder economic growth, lawmakers from both parties voiced growing concern about overreach and the potential harm to local efforts to protect consumers, artists, children, and democratic processes.

Sen. Thom Tillis (R-NC) was the lone vote in favor of keeping the federal ban.

The amendment’s defeat maintains state control over emerging AI regulations, but also leaves broadcasters facing a fragmented legal environment. In the absence of a federal framework, radio and television operators may be subject to a shifting mix of state laws governing AI-generated content, voice replication, and political ad disclosures.

Broadcasters in New York must include audible disclosures when political ads feature AI-generated content. California, Texas, Minnesota, New Jersey, Idaho, Indiana, New Mexico, Utah, Wisconsin, and Washington have also enacted deepfake laws requiring stations to identify or refuse AI material that replicates a person without their consent. Oregon’s rules are stricter still, demanding clear disclosure of AI use in all campaign-related communications.

Broadcasters and industry groups like the NAB have previously called on Congress to create a clear national standard to ease the strain of navigating conflicting or duplicative requirements across markets.

With the AI language stripped, the broader tax package now advances toward a final vote ahead of Trump’s self-imposed July 4 deadline. The House and Senate will still need to reconcile competing versions before the bill can reach the President’s desk.