The moratorium could also have killed laws that have already been adopted around the country, including a Colorado law that targets algorithmic discrimination, laws in Utah and California aimed at making AI-generated content more identifiable, and other legislation focused on preserving data privacy and keeping children safe online. Proponents of the moratorium, such OpenAI and Senator Ted Cruz, have said that a "patchwork" of state-level regulations would place an undue burden on technology companies and stymie innovation. Federal regulation, they argue, is a better approach--but there is currently no federal AI regulation in place. Wiener and other state lawmakers can now get back to work writing and passing AI policy, at least for the time being--with the tailwind of a major moral victory at their backs. The movement to defeat the moratorium was impressively bipartisan: 40 state attorneys general signed a letter to Congress opposing the measure, as did a group of over 250 Republican and Democratic state lawmakers.

As Congress races to pass President Donald Trump's "Big Beautiful Bill," it's also sprinting to placate the many haters of the bill's "AI moratorium" provision which originally required a 10-year pause on state AI regulations. The provision, which was championed by White House AI czar and venture capitalist David Sacks, has proved remarkably unpopular with a diverse contingent of lawmakers ranging from 40 state attorneys general to the ultra-MAGA Representative Marjorie Taylor Greene. Sunday night, Senator Marsha Blackburn and Senator Ted Cruz announced a new version of the AI moratorium, knocking the pause from a full decade down to five years and adding a variety of carve-outs. But after critics attacked the watered-down version of the bill as a "get-out-of-jail free card" for Big Tech, Blackburn reversed course Monday evening. "While I appreciate Chairman Cruz's efforts to find acceptable language that allows states to protect their citizens from the abuses of AI, the current language is not acceptable to those who need these protections the most," Blackburn said in a statement to WIRED.