The Trump administration's tax bill included a provision that would prevent states from enforcing their own AI regulations for five years while putting $500 million in AI funding at risk. The Senate voted overwhelmingly to remove this moratorium. Originally, the bill proposed a 10-year ban on state AI regulation, which was later amended to five years with some exemptions. This created concerns about inconsistent state regulations and funding disparities, where some states could have strong AI laws without the necessary funding to implement them effectively.
"State and local governments should have the right to protect their residents against harmful technology and hold the companies responsible to account," said Jonathan Walter, a senior policy adviser at The Leadership Conference's Center for Civil Rights.
The initial version of the rule also made $42 billion in broadband internet funding dependent on states' compliance with the 10-year ban. The amended version only held $500 million in AI funding for ransom if states disobeyed.
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