One Big Beautiful Bill Advances Without AI Moratorium

In a decisive overnight vote, the U.S. Senate removed the proposed 10-year moratorium on state regulation of artificial intelligence from the One Big Beautiful Bill Act. The measure, included in earlier drafts, was eliminated by a 99-1 vote via an amendment from Senator Marsha Blackburn of Tennessee.

The moratorium aimed to prevent a patchwork of state-level AI rules, with supporters, including major tech companies, arguing that a national framework would foster innovation and lower compliance costs for businesses.

Critics, however, warned that delaying state oversight could leave consumers and workers unprotected during a period of rapid AI growth. Without federal legislation, they argued, the moratorium would effectively mean no regulation at all.

Attempts to soften the provision, including reducing it to five years and carving out exceptions for child safety and publicity rights, failed to gain traction. In the end, the Senate removed the measure with overwhelming bipartisan support.

WY It Matters

The removal of the moratorium means:

• Wyoming can pursue its own AI regulations to reflect local needs

• Businesses operating in multiple states may face inconsistent rules

• Federal rulemaking efforts remain uncertain, but states are free to act

• Consumer protections can be enforced at both state and federal levels

For Wyoming businesses leveraging AI, this change brings both opportunity and complexity. As the bill heads back to the House, further revisions are still possible.