Scoop: AI moratorium rebranded "temporary pause"

What's inside: The AI provision approved by the parliamentarian is now called a "temporary pause" rather than a "moratorium," according to bill text seen by Maria.

• Senate Commerce Chair Ted Cruz had made broadband grants contingent on whether states were pursuing AI regulations.
• Cruz's office did not immediately respond to requests for comment.

What they're saying: "The most important part about this new text is that it allows the Trump administration to rescind BEAD grants and then only restart them if states agree to the AI pause," said Americans for Responsible Innovation senior VP of government affairs Doug Calidas.

• Calidas added that the pause covers the whole $42 billion pot of money for BEAD, not just the $500 million appropriated for support for AI under the broadband equity program.
• The new language sets aside $25 million for master services agreements for AI infrastructure, which sources familiar said helped the provision survive the Byrd bath.

Staff for Senate Commerce Democrats told Axios that it's their understanding the entire $42 billion pot is at risk and noted that former Cruz staffer and NTIA nominee Arielle Roth would be in charge of carrying it out once confirmed.

• The reason the provision made it through the parliamentarian was because individual parts of the section now have a CBO score with a small budgetary impact.
• Despite language tweaks, the intent is to try to make the choice as painful as possible for states between state AI laws and potentially billions of dollars in broadband funding, one of the Democratic staffers said.
• The staffer added that language includes "automated decision systems," making the ban on laws much broader than it seems.

What's next: Byrd baths are ongoing now and a motion to proceed — when the Senate will vote on whether to move forward with debate — on the budget bill is expected around Thursday, according to a source familiar.

• There are 20 hours of debate equally divided, followed by a vote-a-rama likely over the weekend.
• Revised text will likely be released along with the motion to proceed, but could be held back until a vote on passage.
• Amendments are filed between the motion to proceed and votes.

The bottom line: There's still fierce bipartisan pushback to the move and doubts that it will survive in the bill's final iteration.

• Sen. Ed Markey posted on X: "My amendment to strip the AI moratorium from the reconciliation bill is ready to go. I urge other members to join me and block this dangerous provision." Sen. Maria Cantwell will lead an amendment process as well, one Democratic staffer said.
• Republican senators including Marsha Blackburn and Josh Hawley have said they don't support the provision.
• Groups including Moms Against Media Addiction, Common Sense Media and Public Citizen are circulating a petition against the AI moratorium that had more than 60,000 signatures as of Monday morning.