Senate Overwhelmingly Blocks Federal AI Preemption, Locks In State-Level Regulation

The Senate voted 99-1 on July 1, 2025, to strike a 10-year moratorium on state AI laws from the budget reconciliation bill, rejecting House Republicans' attempt to preempt state authority. The bipartisan margin signals that AI governance will now require regular legislative order—a 60-vote threshold—rather than budget-only procedures. State patchworks of AI regulation will remain in force.