United States of America: Senate voted to amend Budget reconciliation Bill to remove moratorium on the enforcement of state and local laws regulating AI

On 1 July 2025, the United States Senate voted to remove a proposed 10-year moratorium on state and local enforcement of Artificial Intelligence (AI) regulations from the Budget Reconciliation Bill. The original text had allowed exceptions for laws that support AI deployment, streamline procedures, or apply neutral, cost-based rules similar to those governing non-AI systems. The Bill also allocated funding to the Department of Commerce to modernise federal IT infrastructure using commercial AI and automation tools to improve efficiency, replace legacy systems, and enhance cybersecurity.