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AI Regs Become Political Football in Fight Over ‘Big, Beautiful Bill’

AI Regs Become Political Football in Fight Over ‘Big, Beautiful Bill’


An unexpected issue has emerged as the House-passed “big, beautiful bill” is debated in the Senate: the future regulation of artificial intelligence (AI) by states. Central to this discussion is a contentious provision that could prevent states from imposing their regulations on AI. The implications of this provision are significant and have sparked a lively political debate, emphasizing the balance between innovation and state sovereignty.

The firestorm began when Rep. Marjorie Taylor Greene, R-Ga., raised concerns about the bill’s 10-year moratorium on state-level limits on AI regulation. Greene deemed this provision a “violation of state rights,” asserting her unwillingness to support the bill unless the provision is removed. Speaker of the House Mike Johnson, R-La., defended the decision to maintain federal control over AI regulations, arguing that it is crucial for the United States to maintain a competitive edge over adversaries in AI technology. He suggested that the federal government could fill regulatory gaps to ensure safe and responsible AI use.

Greene’s determination to challenge the provision reflects broader concerns echoing throughout the Senate. She indicated that discussions are underway regarding the potential removal of the provision due to the Senate’s Byrd Rule, which forbids including certain non-budgetary provisions in reconciliation measures. Greene has encountered resistance from within her party, as some influential senators are contemplating the fate of the AI regulation moratorium.

Senate Majority Leader John Thune, R-S.D., pointedly noted the uncertainty surrounding the provision’s compliance with the Byrd Rule. The Senate Commerce Committee, chaired by Sen. Ted Cruz, R-Texas, recently released an updated text of the bill which may hedge against Byrd Rule challenges by attaching stringent conditions to state funding for broadband, thereby indirectly addressing AI regulation concerns. Cruz mentioned the need to “rewrite” sections of the bill to enhance its viability in the face of procedural hurdles.

The role of the Senate parliamentarian, who serves as a referee on whether legislative provisions align with Senate rules, has become pivotal. If a senator raises a point of order regarding compliance with the Byrd Rule, it could lead to the potential removal of the AI regulation provision. Notably, Sen. Ed Markey, D-Mass., is expected to challenge the provision, emphasizing that it would restrict governors and state legislatures from safeguarding their constituents against the potential harms posed by unregulated AI technology.

This divide highlights the conflicting agendas of various senators regarding the regulation of Big Tech. Sen. Josh Hawley, R-Mo., has announced plans to draft an amendment aimed at eliminating the state regulation moratorium should it survive the Byrd Rule scrutiny. Similarly, Sen. Marsha Blackburn, R-Tenn., has consistently advocated for stronger regulations on AI, pointing out that existing frameworks are insufficient for protecting citizens from the dangers of AI misuse.

The political stakes inherent in these discussions are profoundly high. The original bill was passed in the House by a narrow margin, and any significant adjustments or eliminations to contentious provisions could jeopardize its support—including that of Greene and her allies. On the Senate side, with a slim Republican majority, party leadership must navigate competing interests on spending and benefit reforms in order for the bill to advance.

Moreover, the Biden administration’s backing of the AI innovation agenda complicates the dynamics. House Speaker Mike Johnson has indicated that the president supports the bill as it currently stands. White House AI and crypto czar David Sacks defended the provision’s aim to provide a unified regulatory framework as opposed to a patchwork of state-level regulations, which he argues may stifle innovation.

As these discussions continue, it’s clear that the political landscape concerning AI regulation is rapidly evolving. Greene’s assertion that the White House played a hand in crafting the original provisions raises points of contention within the party, highlighting the intricate interplay between legislative efforts and executive influence in shaping AI policy.

With the ongoing talks, stakeholders must weigh innovation’s urgency against the imperative of state-level regulation to ensure safety and accountability. The ability of the Senate to strike a balance will be critical in determining how AI will be managed and regulated in the years to come. It’s a moment that could redefine the foundation of federalism in America as it relates to emerging technologies.

In the coming weeks, all eyes will be on the Senate as it wrestles with these issues. The outcome of this debate will not only impact AI regulation but could also reflect broader truths about power and governance as new technologies continue to shape our society. Ultimately, the direction of the “big, beautiful bill” may lay the groundwork for the future of both AI regulation and the relationship between federal and state powers in America.

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