Ted Cruz Defends AI Moratorium, Warns GOP Against Helping China

Sen. Ted Cruz (R-TX) and Sen. Marsha Blackburn (R-TN) are proposing changes to a controversial AI moratorium included in a sweeping Republican technology bill, seeking to ease concerns from GOP governors and preserve certain state-level protections.

The original moratorium would have barred state and local governments from enacting or enforcing laws that regulate AI models and automated decision-making systems. The revised language—part of a forthcoming manager’s amendment—maintains that core prohibition but creates carveouts for state laws addressing online child safety and protections for individuals’ names, images, and likenesses, so long as those laws don’t impose an “undue or disproportionate burden” on AI systems.

“To ensure we do not decimate the progress states like Tennessee have made to stand in the gap, I am pleased Chairman Cruz has agreed to update the AI provision to exempt state laws that protect kids, creators, and other vulnerable individuals from the unintended consequences of AI,” Blackburn said in a statement.

Sen. Cruz, who chairs the Senate Commerce Committee, defended the broader moratorium, warning against weakening it as the U.S. competes with foreign adversaries in AI development.

“Any Republican who votes to strip this moratorium out of the bill is voting, number one, to give a massive gift to Communist China, and essentially to surrender the race for AI to China,” Sen. Cruz said.

The amendment is not expected to be introduced as a standalone provision, but as part of a broader package of updates to the bill, which also includes $500 million in funding for AI deployment within the federal broadband program. States and localities would be required to comply with the AI moratorium to access those funds.

The revised language comes amid growing dissent within the GOP. 17 Republican governors sent a letter to Senate Majority Whip John Thune (R-S.D.), warning that the moratorium could constitute federal overreach and hamper states' ability to respond to emerging AI harms.

The governors argued that a blanket preemption of state AI regulations could have a chilling effect on innovation and consumer protections. The changes from Cruz and Blackburn appear aimed at preserving key state powers while maintaining industry-friendly guardrails favored by some Republicans.

The manager’s amendment is expected to be introduced later this summer as the broader package moves toward a floor vote.