State AI Law Ban Divided the Right

BY AMRITH RAMKUMAR

WASHINGTON—The sudden rise and fall of a ban on state artificial-intelligence laws exposed the deep divisions between the pro-tech and MAGA wings of the Republican Party, a rift that has complicated the GOP’s ability to enact sweeping tech policy.

President Trump’s aides and advisers were split on the proposed ban, people familiar with the matter said. Trump’s stance on the issue couldn’t be determined, but the division among his advisers helped give opponents of the ban—from former Trump adviser Steve Bannon to parents worried about the safety of their children online—room to kill the policy, tech observers said.

“The moratorium provided a juicy target for all of the enemies of technology companies to join forces and take them down,” said Adam Thierer, a senior fellow at the R Street Institute think tank who focuses on innovation and supported the ban.

The debate has high stakes for who regulates AI, with many companies worried about getting ensnared in a thicket of state rules. There have been over 1,000 AI bills proposed at the state level.

Commerce Secretary Howard Lutnick and White House AI czar David Sacks pushed for the ban publicly, while some in Vice President JD Vance’s office expressed opposition privately, people familiar with the matter said.

Other Trump aides were neutral or didn’t think the moratorium would pass.

The ban was added to the Republican megabill in May, when House aides on the Energy and Commerce Commit--tee and some White House staffers saw an opportunity shortly before the legislation was voted on, people familiar with the process said.

Republicans including Committee Chairman Brett Guthrie (R., Ky.) had been praising the idea of a moratorium, so House staffers added language for a 10-year ban into the bill before it went through a committee markup and House vote, the people said.

When it moved to the Senate, critics such as Sens. Marsha Blackburn (R., Tenn.) and Josh Hawley (R., Mo.) said they opposed it because the language was too broad and could be seen as preventing states from passing any laws affecting technology.

Sen. Ted Cruz (R., Texas) was a leading advocate of the provision in the Senate. Sacks and tech industry leaders including venture capitalist Marc Andreessen ramped up public calls for the ban. Tech companies including Google and Meta Platforms lobbied for it, hoping for an unlikely victory, people familiar with the matter said.

Blackburn gave the companies a shot in the arm on Sunday when she indicated support for the ban. Under her agreement with Cruz, the moratorium would be five years and states could pass laws tied to child online safety or protecting artists from unauthorized AI uses of their images.

The optimism unleashed fury on the other side. Bannon, Republican legal activist Mike Davis and others began reaching out to Blackburn’s staff Monday morning, people familiar with the matter said.

Meanwhile, parents and creative groups flooded the offices of Blackburn and others with calls.

Early Tuesday morning, Cruz knew he had lost. On the Senate floor, he accused Blackburn and others of going back on their word.

Cruz said he had spoken to Trump and Trump supported the moratorium. But because many of his colleagues didn’t want to vote on the issue, he would support getting rid of the ban. It passed 99-1. Sen. Thom Tillis (R., N.C.) was the only senator to support keeping it.