Sen. Ted Cruz proposes withholding broadband funding from states that regulate AI

WASHINGTON - U.S. Senator Ted Cruz (R-Texas) proposed on Thursday an alternative punishment for planned legislation that would set a 10-year ban on state regulation of Artificial Intelligence model learning.

Under Cruz’s budget reconciliation proposal, an attempt to regulate AI would be prohibited from collecting federal funding provided by the Broadband Equity, Access, and Deployment (BEAD) program.

Cruz Limits State AI Regulation

The Proposal:

The U.S. House of Representatives passed their version of House Resolution 1, the "One Big Beautiful Bill Act," on May 22. In part, the budget bill would ban state regulation on AI for 10 years.

As chairman of the Senate Committee on Commerce, Science, and Transportation, Cruz authored a budget reconciliation that he says is intended to "fulfill President Trump’s agenda." In a summary of the proposal, he refers to state regulation as "strangling AI deployment," comparing it to EU precautions against tech development.

Cruz’s proposal adds $500 million to the BEAD program, which has already administered $42.45 billion to the states in order to expand high-speed internet access across the country. It also prevents states from receiving any of that funding if they attempt to regulate AI.

Republican Officials Oppose Regulation Ban

Dig deeper:

Rep. Marjorie Taylor Greene (R-Georgia) has recently spoken out against HR 1, saying the anti-regulatory section alone will cost Congress her vote.

Greene explained that she discovered the controversial provision, located on pages 278-279 of the bill, only after the House had already passed the legislation. Once the bill returns to the House following Senate deliberations, Greene says she will change sides based on the matter of AI.

What they're saying:

Advocacy group Public Citizen released a commentary on Cruz’s proposal, referring to it as a "display of corporate appeasement." In the article, J.B. Branch, a Big Tech accountability advocate, included the following statement:

"This is a senatorial temper tantrum masquerading as policy. Americans have loudly rejected Senator Cruz’s dangerous proposal to give tech giants a decade of immunity from state regulation. State legislatures, attorneys general, and citizens across all 50 states have demanded that Congress step away from overhauling consumer protections put in place in the absence of federal leadership. But instead of listening to the American people, Senate Republicans threw a fit and tied vital digital funding to corporate impunity.

"With this move, Republicans are telling millions of Americans: ‘You can have broadband but only if your state gives up the right to protect you from AI abuses.’ It’s undemocratic and cruel. Republicans would rather give Big Tech a 10-year hall pass to experiment on the American people unchecked, rather than give underserved rural and urban communities the ability to compete in the digital economy. Congress must reject this corporate giveaway and refocus their energy on representing the public interest."

In her statements criticizing the anti-regulation portion of HR 1, Greene expressed concerns about developing rapidly evolving tech without checks and balances.

"No one can predict what AI will be in one year, let alone 10," Greene said. "But I can tell you this: I’m pro-humanity, not pro-transhumanity. And I will be voting NO on any bill that strips states of their right to protect American jobs and families."

What's next:

HR 1 is expected to continue undergoing changes in the Senate before returning to the House for another vote. Cruz's proposal has yet to be officially added to the legislation.

The Source: Information in this article comes from public U.S. Congress filings, Public Citizen, and previous FOX 4 coverage.