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World of Software > News > GOP squares off over AI ban
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GOP squares off over AI ban

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Last updated: 2025/06/17 at 8:08 PM
News Room Published 17 June 2025
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Technology

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The Big Story 

AI moratorium sparks GOP battle over states’ rights

A push to ban state regulation of artificial intelligence for 10 years is setting off a debate among Republicans, further complicating its path towards passage in President Trump’s “one, big, beautiful bill.”  

© Greg Nash 

The AI provision has divided Republicans into two camps: one touting the party’s traditional support of states’ rights, and another concerned with overbearing regulation. 

 

As the Senate works out its own changes to the larger tax and spending package, an increasing number of Republicans from both chambers are coming out against the AI provision, which calls for a 10-year moratorium on state laws regulating AI models and systems.  

 

Republicans opposed to the measure differ in their opinions of AI and how beneficial it could be, but share concerns with the federal government stifling the ability of states to set their own rules for it. 

 

Sen. Ron Johnson (R-Wis.), one of the most vocal GOP critics of Trump’s broader bill, said Tuesday he is “not a real fan of the federal government” and is against the provision.  

 

“I personally don’t think we should be setting a federal standard right now and prohibiting the states from doing what we should be doing in a federated republic. Let the states experiment,” Johnson said.

 

While Sen. Josh Hawley (R-Mo.) has expressed concerns about the economic impact of AI, he said he is willing to introduce an amendment to eliminate the provision during the Senate’s marathon vote-a-rama if it is not taken out earlier. 

 

“I’m only for AI if it’s good for the people,” he told reporters, citing AI’s potential disruptive impact on the job market. “I think we’ve got to come up with a way to put people first.” 

 

Even some House Republicans who already voted to pass the bill in the lower chamber are speaking out against the provision.  

 

A group of hardline conservatives argued in a letter last week to Senate Republicans that Congress is still “actively investigating” AI and “does not fully understand the implications” of the technology.   

 

This was shortly after Rep. Marjorie Taylor Greene (R-Ga.) confirmed she would be a “no” on the bill if it comes back to the House with the provision included.  

 

“I am 100 percent opposed and I will not vote for any bill that destroys federalism and takes away states’ rights, ability to regulate and make laws when it regards humans and AI,” the Georgia Republican said.

 

Sen. Rick Scott (R-Fla.) declined to say whether he would support the moratorium but noted he “likes states’ rights.” 

 

Sen. Ted Cruz (R-Texas), the chair of the Senate Committee on Commerce, Science and Transportation, rejected concerns the moratorium could encroach on states’ rights, pointing to the Commerce Clause in the Constitution.  

 

“The Constitution,” Cruz said, “gives Congress the authority to regulate commerce between the states and AI is quintessentially commerce between the states and having a patchwork of 50 different standards crippling the development of AI.”  

 

The battle comes just over a month after OpenAI CEO Sam Altman and other tech leaders appeared before Cruz’s committee and voiced their opposition to state-by-state regulation of AI.  

 

Read more in a full report Wednesday morning at TheHill.com. 

 

Welcome to The Hill’s Technology newsletter, we’re Miranda Nazzaro and Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley.

 

Did someone forward you this newsletter? Subscribe here.

 

Essential Reads 

How policy will be impacting the tech sector now and in the future:

 

White House says Trump will push TikTok deadline another 90 days

President Trump will sign another executive order this week extending the deadline for TikTok’s parent company to divest the video sharing app, White House press secretary Karoline Leavitt said Tuesday. “As he has said many times, President Trump does not want TikTok to go dark,” Leavitt said in a statement shared with The Hill. “This extension will last 90 days, which the Administration will spend working …

 Full Story

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What to know about Trump’s spat with Tucker Carlson

President Trump is taking fire over his posture toward Iran from an unlikely critic in the media: Former Fox News host Tucker Carlson.  Trump attacked Carlson directly late Monday, marking a major departure from what has for months been a rosy relationship between the pundit and president. The rift is underscoring GOP divisions on how the U.S. should respond to the escalating crisis in the Middle East and highlighting …

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Musk shares drug test results showing ‘negative’ for ketamine

Tech billionaire Elon Musk shared drug test results on Tuesday showing that he tested negative for ketamine after The New York Times reported he was using drugs on the 2024 campaign trail. The Tesla CEO shared a picture of the test results, which showed negative results for several other drugs, on the social platform X, simply captioning the post, “lol.” Musk continued his criticism of the Times and The Wall Street …

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Democrats demand details from Palantir on federal contracts after Social Security, IRS report

A coalition of Democratic lawmakers are asking tech giant Palantir to turn over details of their contracts with the Trump administration amid reports the data company has been given lucrative contracts that could allow it to assemble a database on Americans. The New York Times reported last month that Palantir is in discussions with numerous government agencies for use of its technology that analyzes data, including …

 Full Story

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Tomorrow’s news today

Stay ahead of the political trends by signing up for The Hill’s Evening Report newsletter. Click here to sign up

 

 

The Refresh 

News we’ve flagged from the intersection of tech and other topics:

  • OpenAI wins $200 million U.S. defense contract (CNBC) 
  • Trump officials weighed broader China tech restrictions ahead of trade talks (Wall Street Journal) 
 

Crypto Corner 

Senate passes stablecoin bill in major crypto milestone

I'm an image

© Greg Nash 

Welcome to Crypto Corner, a daily feature focused on digital currency and its outlook in Washington.

 

The Senate on Tuesday passed legislation creating a regulatory framework for payment stablecoins in a major milestone for the crypto industry. 

 

Lawmakers voted 68-30 to pass the GENIUS Act, which seeks to establish rules of the road for the dollar-backed cryptocurrencies.

 

It marks the first time that major crypto legislation has cleared the upper chamber. The bill now heads to the House. 

 

“With the GENIUS Act, we’re bringing clarity to a sector that’s been clouded by uncertainty and proving that bipartisan, principled leadership can still deliver real results for the American people,” Senate Banking Chair Tim Scott (R-S.C.) said in a statement.  

 

“This did not happen by accident,” he continued. “It happened because we led – across the aisle and with purpose.” 

 

Eighteen Democrats joined with most Republicans to pass the legislation, which has trudged forward through a series of procedural hurdles on the Senate floor over the past four weeks.  

 

Sen. Ruben Gallego (D-Ariz.), who was a lead negotiator for Democrats on the GENIUS Act, touted its passage as “proof of what can be achieved through honest negations and a willingness to work across the aisle.” 

 

ICYMI: Stand with Crypto, a nonprofit grassroots crypto movement,  surveyed 1,000 New Jersey Democratic primary voters last week. 

 

Here’s what they found:

  • 57 percent of voters say they would be more likely to vote for a candidate who supports pro-crypto policies. 
  • 62 percent of voters said each candidate’s position on cryptocurrency influenced their voice choice at least “a little.”
  • One in four of New Jersey’s Democratic primary voters said they own cryptocurrency and 22 percent said they previously owned crypto. 
 

In Other News 

Branch out with other reads on The Hill:

I'm an image

NAACP planning to sue Musk AI company over supercomputer pollution

The NAACP and an environmental group are planning to sue Elon Musk’s artificial intelligence company xAI, amid concerns that its supercomputer facility is prompting air pollution in Memphis, the groups announced Tuesday. The Southern Environmental Law Center (SELC), on behalf of the NAACP, sent a letter to xAI and its affiliates on Tuesday notifying the company of their intent to sue over its alleged continued use of …

Full Story

 

What Others are Reading 

Two key stories on The Hill right now:

I'm an image

The Memo: Risks loom as Trump moves toward direct participation in Israel’s attack on Iran

President Trump is becoming ever more emphatic in his backing of Israel’s attack on Iran, with the chances rising by the hour that he will green-light … Read more

I'm an image

US positions military to potentially join Israel war with Iran 

The U.S. military is positioning itself to potentially join Israel’s assault on Iran, as President Trump weighs direct action against Tehran … Read more

 

What Others are Reading 

Opinions related to tech submitted to The Hill:

  • America’s drone 9/11 is coming — and just like on 9/11, we aren’t ready 
  • The remote work revolution is here to stay 
 
 

You’re all caught up. See you tomorrow! 

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