The Senate Commerce Committee's AI provision in the budget reconciliation text, released by Chairman Ted Cruz, has garnered significant support from conservative groups, business leaders, and tech entrepreneurs. The provision aims to bolster U.S. competitiveness against China in the AI sector by promoting investment and providing stability for developers and small businesses amidst varying state regulations.
The proposal maintains states' authority over consumer protection laws while introducing a $500 million state AI program that does not interfere with existing tech-neutral laws on privacy and online safety. Recently, the Senate Parliamentarian confirmed that the AI provision complies with the Byrd Rule, which requires reconciliation provisions to relate directly to budgetary matters.
Senator Cruz expressed satisfaction with this ruling: “Once again, I am pleased with the Parliamentarian’s advice that our AI provision satisfies the tenets of the Byrd Rule. The issue is settled. I urge my colleagues to support this reasonable investment in American innovation and jobs.”
Various organizations have voiced their approval of this initiative:
- The American Innovators Network (AIN) supports a temporary pause on state AI regulation, highlighting its potential impact on innovation and competition.
- Americans for Prosperity (AFP) stated: “A patchwork of state AI laws would strangle innovation & crush startups.”
- Americans for Tax Reform commended efforts to auction more spectrum and thread budgetary needs regarding AI preemption.
- Club for Growth backs policies fostering economic growth through innovation.
- Consumer Technology Association (CTA) advocates preserving a 10-year moratorium on enforcing state-level AI laws.
- Information Technology Industry Council (ITI) emphasized the need for federal investment in AI infrastructure to maintain global competitiveness.
- National Association of Manufacturers (NAM) praised congressional efforts to avoid fragmented regulations stifling innovation.
- National Retail Federation (NRF) supports a temporary halt on enforcing future and existing state-level AI regulations.
- Technology Councils of North America (TECNA) stressed the importance of a unified national approach to prevent regulatory uncertainty.
- U.S. Chamber of Commerce highlighted challenges small businesses face due to varied local regulations.
Will Rinehart from the American Enterprise Institute described the moratorium as "a pragmatic compromise" prioritizing effective regulation over speed.
