Senators voted overwhelmingly on Tuesday morning to strike a controversial artificial intelligence (AI) provision from President Donald Trump’s sweeping “Big Beautiful Bill.” The vote, 99-1, marks a significant defeat for the tech industry, which had vigorously lobbied to keep the provision in the legislation. The contentious section aimed to prevent states from regulating AI, initially proposing a 10-year moratorium, a stance widely supported by key figures in the technology sector.

The provision, championed by Republican Sen. Ted Cruz of Texas, had undergone multiple revisions before its eventual removal. It was first conceived as an outright ban on state-level AI regulation for a decade. Subsequent adjustments allowed states to regulate AI but tied this to a forfeiture of federal funding for AI deployment. Most recently, Republican Sen. Marsha Blackburn of Tennessee had negotiated an agreement to shorten the moratorium to five years and include carveouts, particularly for child safety. However, this compromise quickly unraveled.

Proponents of the provision, largely from the tech industry, argued that a unified federal framework was essential to prevent a “patchwork regulatory framework” of differing state laws. They contended that such a fragmented approach would significantly impede innovation at a crucial time, especially given the intensifying global competition in AI development. OpenAI CEO Sam Altman, for instance, stated at a Senate hearing that a multitude of state laws would “slow us down at a time where I don’t think it’s in anyone’s interest for us to slow down.” Other vocal supporters included Palmer Luckey, cofounder of Anduril Technologies, who deemed the provision “absolutely critical for the economic, educational, military, and cultural future of America,” and venture capitalist Joe Lonsdale of Palantir Technologies, who emphasized avoiding “the huge problems of a state-by-state system for new technology.”

Despite this advocacy, the provision faced strong bipartisan opposition. Critics, spanning both the left and the right, viewed it as a threat to states' rights and an undue concession to the tech industry. Sen. Marsha Blackburn emerged as a leading voice against the moratorium, expressing concerns that it “could allow Big Tech to continue to exploit kids, creators, and conservatives.” She asserted that states must retain the ability to protect their citizens until comprehensive federal legislation, such as the Kids Online Safety Act and an online privacy framework, is enacted. Democrats echoed these sentiments, with Rep. Ed Marey of Massachusetts stating the vote sent “a clear message that Congress will not sell out our kids and local communities in order to pad the pockets of Big Tech billionaires.” AI safety experts, including Max Tegmark, President of the Future of Life Institute, also welcomed the outcome, characterizing the provision as a “Big Tech power grab” that threatened American families and jobs by demanding immunity from meaningful oversight.

The near-unanimous vote to strip the language from the bill occurred around 4:30 AM on Tuesday, with only Republican Senator Thom Tillis voting against its removal. The consensus among opponents was that the bill could not pass if the controversial provision remained. Republican Rep. Marjorie Taylor Greene of Georgia, another opponent, remarked that “Federalism is preserved and humans are safe for now.” As of publication, the Senate had not yet passed the overall bill, which the House is expected to vote on later this week with the goal of sending it to President Trump’s desk by the July 4 deadline.