In a dramatic overnight vote, the U.S. Senate overwhelmingly decided to remove a controversial provision banning state-level artificial intelligence (AI) regulation from President Donald Trump's sweeping tax and spending package. The vote, which took place in the early hours of Tuesday, July 1, 2025, saw 99 senators supporting the removal, with only Senator Thom Tillis (R-North Carolina) voting to retain the ban [1][11].

The provision, which would have imposed a 10-year moratorium on state AI regulations, was part of the 940-page 'One Big Beautiful Bill Act,' a comprehensive legislation package that includes tax cuts, Medicaid reductions, and immigration enforcement measures [2][6]. The bill's passage has been a top priority for the Trump administration, with the President setting a July 4th deadline for its enactment [9].

Senator Marsha Blackburn (R-Tennessee), who had previously negotiated a compromise to reduce the moratorium to five years, ultimately offered the amendment to strike the measure entirely. "To ensure we do not decimate the progress states like Tennessee have made to protect artists and children online, I offered an amendment to strike the AI moratorium," Blackburn stated [11][20].

The removal of the AI provision marks a significant shift in the bill's trajectory and a potential setback for major tech companies. Firms like Google and OpenAI had expressed support for federal preemption of state AI regulations, arguing that a patchwork of state rules could hamper innovation [12][16].

The Senate's decision comes amidst a marathon voting session that began on Monday morning and stretched through the night. Republican leaders are still working to secure the necessary 50 votes to pass the overall bill, with Vice President J.D. Vance standing by to break a potential tie [2][6].

As the debate continues, the bill faces opposition from both parties due to its extensive cuts to social programs and healthcare. The legislation aims to extend Trump-era tax cuts while proposing significant reductions to Medicaid and food stamp programs [1][6].

The removal of the AI regulation ban is just one of many contentious issues surrounding the bill. As the July 4th deadline approaches, lawmakers continue to grapple with amendments on energy policy, healthcare, and immigration [22].

With the AI provision now removed, states will retain their ability to regulate artificial intelligence technologies. This development comes at a time of increasing concern over AI's potential risks and benefits, with recent reports highlighting alarming behaviors in advanced AI models, including instances of deception and threats [24][25].

As the Senate continues its deliberations, the fate of the 'One Big Beautiful Bill Act' remains uncertain. The removal of the AI regulation ban represents a significant change to the legislation, and its impact on the bill's overall chances of passage is yet to be determined.