New Cruz Budget Reconciliation Bill Same as the Old Cruz Budget Reconciliation Bill: Leverages BEAD Funding to Ban State AI Laws for 10 Years
June 25, 2025
Bill will also auction spectrum used for US defense, aviation safety, weather sensing, WiFi
WASHINGTON, D.C. – U.S. Senator Maria Cantwell, Ranking Member of the Senate Committee on Commerce, Science and Transportation, criticized new reconciliation bill language released today by Chair Cruz which forces states receiving BEAD funding to choose between expanding broadband or protecting consumers from AI harms for ten years. The new language also auctions spectrum critical to national defense.
“The newly released language by Chair Cruz continues to hold $42 billion in BEAD funding hostage, forcing states to choose between protecting consumers and expanding critical broadband infrastructure to rural communities,” Sen. Cantwell said. “Forty State Attorneys General oppose the AI moratorium that would leave every American vulnerable to AI-assisted fraud, theft and abuse at a time when we should be strengthening consumer protections. This bill would auction off spectrum essential for military drone operations and risk grounding both civilian and military aircraft due to interference with airplane altimeters. It would jeopardize our weather tracking radar systems and the bands we rely on for WiFi connectivity. And for what? So telecommunications companies—the same ones that failed to protect Americans from Salt Typhoon—can profit and Trump can hawk more of his $47.45 phone plans. This is a fundamental threat to our national defense and a massive giveaway to China."
In documents released this morning, the Chair claims that the ten-year moratorium on states’ enforcement of AI laws applies only to a new $500 million appropriation. However, the bill’s text conditions the full $42 billion, likely resulting in a nationwide AI moratorium.
Earlier today, Commerce Secretary Lutnick indicated this intent:
Organizations and individuals in opposition to the 10-year AI moratorium include:
American Association for Justice
American Economic Liberties Project
Americans for Responsible Innovation,
Center For Democracy & Technology
Civil Society (140 organizations)
International Longshore and Warehouse Union
National Association of Insurance Commissioners
North American Securities Administrators Association
State lawmakers from MD, VA, CO, CT, MN, NY, VT
National Conference of State Legislatures
Consumer Federation of America
Leadership Conference on Civil and Human Rights
National Association of State Chief Information Officers
National Fair Housing Alliance
Institute of Family Studies (Op-Ed)
Center for Democracy & Technology (Op-Ed)
