The bill is being slimmed down by the Senate ahead of the July 4th deadline set by lawmakers for final passage.
President Trump’s “One Big, Beautiful Bill” is currently in the Senate, where it is being significantly cut down from the original version from the House GOP.
Senate parliamentarian Elizabeth MacDonough has been issuing guidance on which measures in the bill do not comply with the budget reconciliation process.
A provision in the bill withholding broadband funds to states that regulate artificial-intelligence technology was not included in the list of provisions MacDonough said were not in compliance.
In the House version of the bill, Republicans included a measure that would have delayed state regulation of artificial intelligence for 10 years.
The parliamentarian announced that the provision will be able to remain in the bill and be voted on with a simple-majority vote.
Lawmakers in Washington are focused on the unprecedented demand for electricity that is being caused by AI boosts. These demands threaten to skyrocket consumer energy prices, while creating an economic benefit through the construction of AI data centers.
The decision by the Senate parliamentarian comes after Senate Republicans made changes to the language in the bill to allow the provision to be in compliance.
Senator Ted Cruz of Texas, the chair of the Senate Committee on Commerce, Science and Transportation, proposed that states be prohibited from regulating AI if they want access to federal funding from the Broadband Equity, Access and Deployment (BEAD) program.
Democrats are largely against the provision, which has further divided Republicans as the reconciliation process continues.
Republican Senators Marsha Blackburn of Tennessee and Ron Johnson of Wisconsin recently said they are against the provision. Senator Josh Hawley of Missouri said he is willing to introduce an amendment to eliminate the provision during the Senate’s marathon vote-a-rama if it is not removed prior.
On the House side, Representative Marjorie Taylor Greene of Georgia said she will vote no on the bill if it comes back to the House with the provision included.
She told reporters, “I am 100 percent opposed, and I will not vote for any bull that destroys federalism and takes away states’ rights, ability to regulate and make laws when it regards humans and AI.”
State lawmakers have also expressed their opposition to the proposed moratorium on state AI regulation.
In Pennsylvania, the Pittsburgh region is expected to see an AI boom in coming years. The construction of a new AI data center, as well as the region’s natural gas supply, are making Pennsylvania a key location for AI innovation.
