
Illustration: Aïda Amer/Axios
Senate Commerce Chair Ted Cruz and Sen. Marsha Blackburn's last-minute agreement on a watered-down AI moratorium has been scrapped, Blackburn's office confirmed to Axios.
Why it matters: Time is running out to get some version of the AI provision, which has gone through several iterations, across the finish line.
Driving the news: On Sunday, Blackburn negotiated a five-year moratorium instead of 10, with carveouts for AI bills that protect name, image and likeness and kids' online safety.
- But pushback quickly emerged, especially regarding the new language requiring states to prove these laws do not pose an "undue or disproportionate burden" on AI systems.
What they're saying: "While I appreciate Chairman Cruz's efforts to find acceptable language that allows states to protect their citizens from the abuses of AI, the current language is not acceptable to those who need these protections the most," Blackburn said.
- "This provision could allow Big Tech to continue to exploit kids, creators, and conservatives. Until Congress passes federally preemptive legislation like the Kids Online Safety Act and an online privacy framework, we can't block states from making laws that protect their citizens."
- When asked whether further text changes were being negotiated, a spokesperson for Blackburn said she now supports stripping the AI provision from the reconciliation bill.
What's next: Senate Commerce Ranking Member Maria Cantwell and Sen. Ed Markey have filed an amendment to strip the AI provision from the reconciliation bill.
- If every Democrat backs the amendment to nix the AI pause, four Republicans would need to join them in order for it to pass.

