If there’s one thing the AI industry needs it’s more regulation. Yet, soon individual US states might not have much say in what AI companies can and can’t do thanks to Trump pleasing senators. That’s right, an AI-friendly amendment to the president’s tax legislation is on the road to approval — despite concerns that its shoehorning is illegal. The clause would prevent states from legislating the AI industry for five years, Bloomberg reports. Only states that cooperate will be allowed to access some of the $500 million of funding for AI infrastructure and the like included included in the bill.
Senator Marsha Blackburn (R-Tennessee) cleared the way for it, agreeing to a deal on Sunday with Senator Ted Cruz (R-Texas) that would exempt her home state’s Ensuring Likeness Voice and Image Security (ELVIS) Act. Signed in early 2024, the ELVIS Act is meant to protect musicians from allowing AI to use their likeness and voice without permission.
As part of the new deal, Cruz reduced the ban from ten to five years — because five years of an unregulated AI industry surely won’t cause any damage. A fresh draft of the amendment, obtained by Politico, also includes exemptions for “a law or regulation pertaining to unfair or deceptive acts or practices, child online safety, child sexual abuse material, rights of publicity, protection of a person’s name, image, voice, or likeness and any necessary documentation for enforcement,” as long as they don’t place an “undue or disproportionate burden” on AI systems. An earlier version of the provision, that included the decade-long ban, passed the House in May.
While Blackburn’s decision will likely push it forward, Republican governors across the country have also voiced their disdain for the amendment. On Friday, 17 governors sent a letter asking for its removal (after sucking up about the rest of the tax bill, of course). They stated that it “threatens to undo all the work states have done to protect our citizens from the misuse of artificial intelligence.”
Correction, June 30, 2025, 8:51AM ET: The headline has been changed to reflect that the provision proposes a qualified pause rather than an outright ban on state level AI legislation.
