Senator Marsha Blackburn (R-Tenn.) announced on Sunday that she has entered into an agreement with Senate Commerce Chairman Ted Cruz (R-Texas). This deal pertains to President Trump’s comprehensive tax plan, which includes a controversial provision to restrict regulations on artificial intelligence (AI).
The revised agreement proposes a “temporary suspension” of AI regulations for five years in exchange for access to $500 million allocated for AI infrastructure and deployment. Previously, Blackburn had opposed measures that aimed to limit state regulations for a decade.
Additionally, the agreement introduces exemptions from certain state laws related to regulating deceptive practices, ensuring the online safety of children, addressing child sexual abuse materials, and protecting publicity rights.
“For a long time, Congress has been trying to regulate virtual spaces but has failed to implement effective laws to protect Americans from exploitation by large tech companies. That’s why I’m advocating for federal protections for Tennessee residents and all Americans,” Blackburn stated.
“I’ve accepted President Cruz’s updates to AI regulations, ensuring state laws that safeguard children and other vulnerable groups won’t be unintentionally undermined by AI,” she added.
Blackburn has been a strong proponent of online safety legislation for children. She recently reintroduced the Children’s Online Safety Act (KOSA) alongside Senators Richard Blumenthal (D-Conn.), John Tune (R-S.D.), and Senate Minority Leader Chuck Schumer (D-N.Y.).
She expressed optimism about collaborating over the coming months to hold big tech accountable, including advancing laws for online child safety and privacy that empower consumers over their data. “It’s time to bring a comprehensive bill to the president’s desk and fulfill our commitment to prioritize America’s agenda,” she said.
However, it’s uncertain whether Blackburn and Cruz’s agreement on the AI provision will satisfy other lawmakers who have previously expressed opposition, such as Senators Ron Johnson (R-Wis.), Josh Hawley (R-Mo.), and Marjorie Taylor Greene (R-Ga.).
The provision received a favorable ruling from Senator Elizabeth McDonough last week, who determined that the AI suspension complied with the Bird Rules, allowing it to remain in the settlement bill.
The Senate is expected to proceed with a series of votes on the package Monday morning, aiming to finalize the bill ahead of the July 4 deadline set by Trump.
