AI Moratorium in the US: Senator Blackburns Flip from Big Tech Guardian to Regulator

It all began with a provision in Trump’s so-called «Big Beautiful Bill,» which officially carries that name. This provision included a strong clause proposing a **10-year moratorium on any AI regulations in the states**. Essentially, it acted like a pass for big tech: «For the next decade, you’ll be largely untouched!»

The idea was pushed by David Sachs, the White House’s AI expert and venture capitalist. However, a backlash arose—ranging from forty state attorneys general to far-right figure Marjorie Taylor Greene—all united in claiming: «This is a shield for misconduct!» Child advocates and musicians were particularly outraged.

On Sunday, Senators Blackburn and Cruz offered a compromise:

1. Shorten the moratorium to 5 years;
2. Allow states to regulate AI in areas including: 1) child online protection, 2) combating CSAM (child sexual abuse materials), and 3) safeguarding an individual’s name, voice, and image.

The last point represented a personal triumph for Senator Blackburn, whose home state of Tennessee had already passed a law against AI deepfakes involving musicians. It seemed a compromise had been reached, but that was not the case.

Critics quickly labeled this new version a “clever Trojan horse” and a “get-out-of-jail-free card for big tech.” The reason? A loophole: state laws must not impose **“undue or disproportionate burdens”** on AI systems.

«Social media has long operated on algorithms and AI. Now, any regulation can be contested as an ‘undue burden,'» Senator Cantwell explained.

Even child protection efforts found themselves at risk. Danny Weiss from Common Sense Media commented, “This clause could paralyze **any** efforts to enhance technology safety.” Steve Bannon even quipped on Twitter: “In five years, they’ll do plenty of damage!”

Then, astonishingly, on Monday evening:

Blackburn withdrew her support for her own amendment;
She allied with Cantwell, her ideological opponent;
Together, they proposed completely removing the AI moratorium from the legislation.

Her statement read like a verdict: “Until we have federal laws on child safety and privacy, we cannot tie the hands of the states.”

The Trump administration insists: “Vote before July 4!” However, the bill now faces a path without a pivotal «AI shield.»

**So, what’s the outcome?**

The AI moratorium has been **removed** from the bill;
States retain the right to regulate AI (especially for child protection, musicians, and against deepfakes);
Big tech has not gained «immunity»;
The bill could still pass… but without the controversial provision.

**Related Links:**

— [Cantwell and Markey Amendment](https://www.commerce.senate.gov/services/files/4E32DD11-E014-4E2C-82FF-498405D737FC) (PDF);
— [Open letter from attorneys general](https://www.reuters.com/sustainability/boards-policy-regulation/ai-regulation-ban-meets-opposition-state-attorneys-general-over-risks-us-2025-05-16/) opposing the moratorium.

**P.S. Love AI news?** Subscribe to the [BotHub AI News Telegram channel](https://t.me/bothub)!