The Senate parliamentarian concluded the controversial push to ban state regulation of artificial intelligence for the next 10 years can remain in President Trump's sweeping tax and spending bill.
The decision, announced by lawmakers over the weekend, followed weeks of speculation from both parties over whether the provision would overcome the procedural hurdle known as the Byrd Rule.
The parliamentarian's decision will allow the provision to be voted on in the budget reconciliation process with a simple-majority vote.
It comes after Sen. Ted Cruz (R-Texas), the chair of the Senate Committee on Commerce, Science and Transportation, altered the language of the House's version in hopes of complying with the Byrd Rule, which prohibits "extraneous matters" from being included in reconciliation packages.
Under their proposal, states would be prohibited from regulating AI if they want access to federal funding from the Broadband Equity, Access and Deployment (BEAD) program.
The House's version called for a blanket 10-year moratorium on state laws regulating AI models and systems, regardless of funding.
Still, some GOP members remained skeptical it would pass the Byrd Rule. Sen. John Cornyn (R-Texas) said last week it was "doubtful" the provision survives.
The provision has further divided Republicans, while Democrats are largely against it.
While many Republicans are concerned with overbearing regulation of the emerging tech, a few GOP members argue it goes against the party's traditional support of states' rights.
Republican Sens. Marsha Blackburn (Tenn.) and Ron Johnson (Wis.) told The Hill they are against the provision, while Sen. Josh Hawley (R-Mo.) said he is willing to introduce an amendment to eliminate the provision during the Senate's marathon vota-a-rama if it is not taken out earlier.
The provision received pushback from some Republicans in the House as well.
A group of hard-line conservatives argued in a letter earlier this month to Senate Republicans that Congress is still “actively investigating” AI and “does not fully understand the implications” of the technology.
This was shortly after Rep. Marjorie Taylor Greene (R-Ga.) confirmed she would be a “no” on the bill if it comes back to the House with the provision included.
“I am 100 percent opposed, and I will not vote for any bill that destroys federalism and takes away states’ rights, ability to regulate and make laws when it regards humans and AI,” the Georgia Republican told reporters.
Several Republican state leaders and lawmakers are also pushing back.
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