GOP split deepens as Senate blocks AI moratorium Trump and Cruz both wanted

The Senate is quietly winning the battle over states’ ability to create their own artificial intelligence (AI) regulations, but there’s still a desire to draw a rough framework at the federal level.

The issue of a blanket AI moratorium that would prevent states from creating their own AI regulations was thought to be shelved over the summer. But that initiative has been revived by House Republicans, who are considering including it in the annual National Defense Authorization Act.

But while the White House has been pressing Congress to create a federal framework that would more harmonize regulations across the country, Republicans in the lower chamber have backed away from that pressure.

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The trio of Senate Republicans who banded together to block the original proposal — Sens. Josh Hawley of Missouri, Marsha Blackburn of Tennessee and Ron Johnson of Wisconsin — applauded the provision’s apparent rise from the grave.

Hawley told Fox News Digital that it was good news that the provision was not included in the defense authorization bill, but cautioned that “caution needs to be exercised and Congress needs to act.”

“So for anyone who says, ‘Congress needs to act and create a single standard,’ I agree with that,” he said. “And we can start by banning chatbots aimed at minors.”

Sen. Ted Cruz, R-Texas, who chairs the Senate Commerce, Science and Transportation committee, initially pushed for a moratorium to be included in Trump’s Big, Beautiful Bill. His stance on the issue has been to unleash artificial intelligence to give the United States a competitive advantage over foreign rivals like China.

However, this initiative was rejected almost unanimously over the summer and was removed from the bill. And Cruz didn’t give up.

“Discussions are ongoing, but it’s the White House that’s conducting it,” Cruz told Fox News Digital.

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Senator Ted Cruz wants to unleash artificial intelligence to give the United States a competitive advantage against China. (Kayla Bartkowski/Getty Images)

Senate Majority Leader John Thune (R.S.D.) acknowledged earlier in the week that it would be difficult to include the moratorium in the defense authorization bill.

“As you know, this is a controversial issue,” Thune said. “So, I mean, I think the White House is working with senators and House members on this to try to come up with something that works but preserves states’ rights.”

Trump declared last month that the US “MUST have a single Federal Standard instead of 50 State Regulatory Regimes” and argued that over-regulation at the state level threatens AI investment and its expected growth.

The White House has reportedly drafted an executive order that would block states from regulating AI, cutting off certain federal funding streams from states that don’t comply with the order, and has directed the Justice Department to sue states that draft their own regulations.

So far, Trump has not taken any action regarding this order.

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Sen. Marsha Blackburn, R-Tenn., rejected Cruz’s attempt to add an AI moratorium to the Big, Beautiful Bill. (Anna Moneymaker/Getty Images)

Blackburn, a leading player in blocking Cruz’s earlier attempt to add an AI moratorium to Trump’s tax bill, also wants some kind of federal framework, but one designed to “protect children, consumers, creators, and conservatives,” a spokesperson for Blackburn told Fox News Digital.

“Senator Blackburn will continue his decade-long effort to work with his colleagues in both the House and Senate to pass federal standards to govern the virtual space and rein in Big Tech companies that prey on children for profit,” the spokesperson said.

And Johnson, another key figure who played a key role in blocking the moratorium earlier this year, argued on Fox News Digital that it’s “an extremely complex problem. That’s my definition of a problem.”

But unlike his colleagues, he was more skeptical about Congress creating a framework he would feel comfortable with.

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“I’m not a real fan of this place,” Johnson said. “And I think we’d be much better off if we legislated a lot less. I’m not sure how often we get that right. Look at health care, look at how it’s completely failed.”

“What are we going to do with AI? It’s hard to say, but we’re not going through the problem-solving process,” he continued. “And again, I worry that the real experts on this subject have vested interests. Whatever their advice, can you really trust them?”