WASHINGTON, D.C. –  In case you missed it, the Senate Commerce Committee’s AI provision in the budget reconciliation text, released by Chairman Ted Cruz (R-Texas), received widespread praise from conservative groups, business and policy leaders, and entrepreneurs in the tech industry. The provision, expected to be included in the Senate’s One, Big, Beautiful Bill (OBBB), helps the U.S. beat China in the AI race by spurring investment and encouraging some measure of certainty to developers, researchers, and small businesses that might otherwise be subjected to a fragmented regulatory landscape governed by inconsistent and conflicting state-level laws.

The language explicitly preserves states’ traditional authorities over right-of-publicity, likeness, and traditional consumer protection laws and makes clear that the OBBB’s new, optional $500 million state AI program would not affect a participating state’s tech-neutral laws, including laws on privacy, child online safety, child sexual abuse material (CSAM), or other explicit content.

Today, the Senate Parliamentarian once again ruled the AI provision complies with the “Byrd Rule.” Under the Senate Byrd Rule, reconciliation provisions must directly relate to budgetary matters to remain in the bill.

Upon the ruling, Sen. Cruz said, “Once again, I am pleased with the Parliamentarian’s advice that our AI provision satisfies the tenets of the Byrd Rule. The issue is settled. I urge my colleagues to support this reasonable investment in American innovation and jobs.”

See a sampling of statements in support of Senate Commerce’s AI language in reconciliation below or click HERE for a list of supporting organizations: 

American Innovators Network (AIN): “As the national voice for Little Tech, startups, and American entrepreneurs, we understand what it takes to build a business and a product that can change the world. However, complying with a patchwork of state regulatory regimes on a paper-thin budget has become a complete barrier to entry for startups… The American Innovators Network welcomes the efforts of U.S. Senator Ted Cruz (R-TX) to include a temporary pause in state AI regulation in the pending Senate reconciliation package and we encourage Senators in both parties to support this policy. The fact that Congress is having this debate highlights the impacts of a fragmented, state-by-state approach to regulating AI: sidelining innovation, shrinking competition, and holding back the United States in the global AI race against China. We believe there’s a principled role for both state and federal policymakers in shaping the future of AI, and one that recognizes the pivotal moment that our nation is facing.”

Americans for Prosperity (AFP): “A patchwork of state AI laws would strangle innovation & crush startups. The AI moratorium in the One Big Beautiful Bill hits pause on that chaos and protects innovation & keeps America competitive!”

Americans for Tax Reform: “Overall, the Senate Commerce Committee should be commended for their work to build on the House draft by auctioning more spectrum threading the budgetary needle on AI preemption. Spectrum auctions and AI preemption are both great policies that should carry in this bill or in the future if the parliamentarian disagrees with their Byrd eligibility. Regardless, the Senate Commerce Committee has done great work to draft pro-innovation policy that will benefit future generations of Americans.”

Club for Growth: “Club for Growth has long-supported policies that foster an economic environment that supports innovation which grows the economy. Artificial intelligence (AI) is exciting technology and states like California & Colorado shouldn’t regulate AI to death. Club supports [Sen. Ted Cruz]’s provision in the reconciliation bill.”

Consumer Technology Association (CTA): “…we urge you to preserve the 10-year moratorium on the enforcement of state and local artificial intelligence (AI) laws in the final budget legislation. The moratorium is essential to preserving America’s global leadership in AI, protecting open markets, and giving Congress the space to establish a rational, unified national framework for the most important technology of our time.”

Information Technology Industry Council (ITI): “Securing U.S. AI leadership requires significant investment in the infrastructure that powers the technology. From manufacturing to healthcare to agriculture, AI is transforming the American economy and driving growth and productivity gains in business large and small. Continuing this growth will depend on having sufficient AI infrastructure to compete globally. Congress has a critical role to play in creating a pro-innovation environment for AI through targeted federal investment and a predictable national framework.  That is why we support the program in the Senate reconciliation bill which would allocate $500 million for AI infrastructure…The U.S. is winning the global AI race today, but we cannot take that leadership position for granted. We urge you to prioritize the AI provision in the reconciliation bill to ensure continued American competitiveness.”

National Association of Manufacturers (NAM): “Manufacturers support Congress’ efforts to help manufacturers avoid a fifty-state patchwork of AI regulations that could stifle innovation. We commend [Senate Commerce] Chairman [Ted Cruz], [House Commerce] Chairman [Brett Guthrie] and the Trump administration for their leadership to ensure America remains the world's leader in AI.”

National Retail Federation (NRF): “The National Retail Federation (NRF) supports the inclusion of a temporary moratorium on the enforcement of both future and existing state-level laws regulating artificial intelligence (AI) models and systems in the Senate’s budget reconciliation bill. We specifically thank you for your leadership on this critical issue and efforts to ensure this provision moves forward through Senate procedure. There is much to learn from the states already regulating AI, but a pause on the enforcement of both future and existing laws specifically targeting AI will allow Congress to set national standards that balances both innovation and safety.”

The Technology Councils of North America (TECNA): “A clear and unified national approach to AI governance is essential to ensuring the United States remains a global leader in responsible AI development and adoption. Without a coordinated framework, a growing patchwork of conflicting state-level regulations threatens to create uncertainty, increase compliance burdens, and deter investment and innovation—particularly for startups and small businesses that are foundational to our tech ecosystem. This moratorium would provide the necessary breathing room to develop thoughtful, consistent federal standards that balance innovation with ethical safeguards.”

U.S. Chamber of Commerce and Local Chambers of Commerce: “A patchwork of state and local regulations will hit the hardest on small businesses who do not have the resources to successfully navigate various and conflicting state and local rules…The development of AI is evolving rapidly, and along with it, opportunities to revolutionize industry, attract new investment, and create high-paying jobs within our communities. For this reason, we strongly support Congress’ effort to implement a 10-year moratorium on state and local rule governing artificial intelligence.”

Will Rinehart, American Enterprise Institute (AEI): “…the moratorium is a pragmatic compromise that prioritizes getting regulation right over getting it fast. We need smart AI regulation. But we need it to be consistent and evidence-based. A temporary pause on state-level rules gives us the best chance to get this right.”

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