Senate parliamentarian approves revised state AI pause
Illustration: Aïda Amer/Axios
The freeze on state AI laws can move forward in the reconciliation bill as long as its conditions only apply to a $500 million pot of AI deployment grants, Senate Democrats announced on Friday.
Why it matters: Confusion had swirled around the amount of federal grant funding that would be swept up by the provision, but the parliamentarian's decision makes clear the provision must plainly state that the $42 billion in BEAD money would not be tied to it.
Catch up quick: The parliamentarian this weekend had cleared the measure for inclusion in the reconciliation bill, but then reopened her review of the text this week.
- While Senate Commerce Chair Ted Cruz had said that the moratorium would only be tied to a new $500 million pot of AI deployment grants, Democrats and other observers had raised concerns it could affect the entire $42 billion in broadband funding.
What they're saying: "This provision does not violate the Byrd Rule as long as the conditions only apply to the new $500 million provided by the reconciliation bill," the Senate Democrats' release states.
What's next: Senators could still move to strip the language from the bill.
- If it makes it to the Senate floor and every Democrat backs an amendment to nix the AI pause, four Republicans would need to join them in order for it to pass.
