Disagreement over regulating AI in Republicans’ tax cut and spending bill is the latest tension among conservatives over putting guardrails on emerging technologies or minimize such interference.
A controversial bid to deter states from regulating artificial intelligence for a decade seemed on its way to passing as the Republican tax cut and spending bill championed by President Donald Trump worked its way through the U.S. Senate.
But as the bill neared a final vote, a relentless campaign against it by a constellation of conservatives — including Republican governors, lawmakers, think tanks and social groups — had been eroding support. One, conservative activist Mike Davis, appeared on the show of right-wing podcaster Steve Bannon, urging viewers to call their senators to reject this “AI amnesty” for “trillion-dollar Big Tech monopolists.”
He said he also texted with Trump directly, advising the president to stay neutral on the issue despite what Davis characterized as significant pressure from White House AI czar David Sacks, Commerce Secretary Howard Lutnick, Texas Sen. Ted Cruz and others.Sen. Ted Cruz, R-Texas, stands in an elevator as Republicans begin a final push to advance President Donald Trump’s tax breaks and spending cuts package, at the Capitol in Washington, Monday, June 30, 2025. (AP Photo/Mark Schiefelbein)
Conservatives passionate about getting rid of the provision had spent weeks fighting others in the party who favored the legislative moratorium because they saw it as essential for the country to compete against China in the race for AI dominance. The schism marked the latest and perhaps most noticeable split within the GOP about whether to let states continue to put guardrails on emerging technologies or minimize such interference.
In the end, the advocates for guardrails won, revealing the enormous influence of a segment of the Republican Party that has come to distrust Big Tech. They believe states must remain free to protect their citizens against potential harms of the industry, whether from AI, social media or emerging technologies.
“Tension in the conservative movement is palpable,” said Adam Thierer of the R Street Institute, a conservative-leaning think tank. Thierer first proposed the idea of the AI moratorium last year. He noted “the animus surrounding Big Tech” among many Republicans.
