Senate Republicans have altered a provision in their latest tax reform bill concerning AI regulation. Instead of an outright 10-year ban on state AI rules, the revised measure would deny federal broadband funding to states that attempt to regulate AI, in hopes of satisfying Senate rules requiring a fiscal connection for such legislation. The proposal has drawn criticism from both Democratic and Republican state officials, as well as digital safety advocates, who argue it undermines states’ ability to respond to rapid advances in AI technology. While some tech leaders support national standards over a state-level “patchwork,” the provision remains controversial within both parties. The broader tax bill, which contains additional spectrum auction reforms and extends Trump-era cuts, is slated for a vote later this month.
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