A proposal to deter states from regulating artificial intelligence for a decade was soundly defeated in the U.S.

S enators voted early Tuesday to remove a controversial 10-year moratorium on state regulation of artificial intelligence from President Trump’s “One Big Beautiful Bill,” marking a significant defeat for a tech industry that had lobbied hard to keep the provision in the sweeping tax and spending package.

The provision, which received a considerable amount of support from Big Tech firms and was championed by Texas Senator Ted Cruz, would have prevented any state that takes funding from a federal broadband fund from passing any legislation that would regulate AI within their borders.

Ted Cruz's plan to block states from creating regulations to limit the potential harm caused by artificial intelligence technology was dropped from the Senate's sprawling budget bill early Tuesday. While Senate leaders continue to try and wrangle support among Republicans for the larger bill,

A deal between Sens. Marsha Blackburn and Ted Cruz over how states can regulate artificial intelligence has been pulled from President Donald Trump's "big, beautiful" bill.