Cruz's budget bill faces backlash over AI law restrictions tied to BEAD funding

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Maria Cantwell | Official U.S. Senate headshot

Cruz's budget bill faces backlash over AI law restrictions tied to BEAD funding

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U.S. Senator Maria Cantwell, the Ranking Member of the Senate Committee on Commerce, Science and Transportation, has expressed strong criticism against new reconciliation bill language introduced by Chair Cruz. The bill mandates states receiving Broadband Equity, Access, and Deployment (BEAD) funding to choose between expanding broadband services or implementing consumer protections against AI-related harms for a decade.

Senator Cantwell stated, "The newly released language by Chair Cruz continues to hold $42 billion in BEAD funding hostage, forcing states to choose between protecting consumers and expanding critical broadband infrastructure to rural communities." She highlighted opposition from 40 State Attorneys General who are against the AI moratorium due to concerns about potential fraud and abuse facilitated by AI technologies.

The bill also proposes auctioning spectrum that is vital for national defense operations. According to Sen. Cantwell, this could affect military drone activities and interfere with airplane altimeters used in civilian and military aviation. She added that it might jeopardize weather tracking systems and WiFi connectivity.

Chair Cruz claims that the ten-year moratorium on state enforcement of AI laws is limited to a new $500 million appropriation. However, critics argue that the bill conditions the entire $42 billion allocation on this moratorium, effectively imposing it nationwide.

Commerce Secretary Lutnick indicated support for this intent earlier today. Various organizations have voiced their opposition to the 10-year AI moratorium. These include State Attorneys General from 40 states, numerous civil society groups such as Public Citizen and Consumer Federation of America, as well as interfaith leaders from various organizations.

A broad coalition comprising labor unions like Teamsters and International Longshore and Warehouse Union, advocacy groups like Heritage Foundation and AFLCIO, along with public interest entities such as National Conference of State Legislatures and National Fair Housing Alliance have also expressed their disapproval.

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