Let’s talk about the Big Beautiful Bill and the sneaky little AI enforcement pause that could have been a real game changer for creatives.

What Was the “AI Moratorium”?

Buried in the bill that was initially passed in the House was a provision called the AI Regulation Enforcement Pause. This would have slapped a 10-year (later negotiated down to five) federal ban on states passing or enforcing their own laws targeting AI models, systems, or automated decision-making tools.

If a state dared to regulate AI, it risked losing out on hundreds of millions in federal funding for broadband and AI infrastructure.

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Who Put It There—and Why?

The provision was championed by the Senate Commerce Committee, led by Senator Ted Cruz, with support from major AI and tech companies.

The alleged intent? To prevent a patchwork of state laws that, according to supporters, would “strangle AI deployment with EU-style regulation” and stifle American innovation.

In other words, the backers wanted to limit the rules and let the feds handle it—eventually. But this plan ran into issues in the Senate.

Why Did Creative Folks Freak Out?

People in the content and creative industries saw red flags everywhere.

They worried that, without state-level protections, AI could run wild—deepfakes, voice cloning, and unauthorized use of artists’ work could go unchecked.

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A compromise version of the AI provision would have allowed states to pass some AI regulations, but only if those laws did not place an “undue or disproportionate burden” on AI developers, companies, or the deployment of AI systems. The way it was written was so vague critics argued it left musicians, writers, and performers with little recourse if their work was exploited by AI.

How Did It Get Yanked?

After a bipartisan uproar—including from state officials, child safety advocates, and creative industry reps—Senators Marsha Blackburn and Maria Cantwell led a successful amendment to strip the AI Moratorium out. In a rare 99-1 vote, the Senate ditched the provision in the early hours of July 1, 2025, letting states keep their power to protect creators and citizens from what could have been a wild, lawless ride.

So, for now, the states are back in the AI regulation game. But stay tuned.

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