Senators Marsha Blackburn and Ted Cruz struck a deal to address state regulation of artificial intelligence under President Donald Trump’s ‘big, beautiful’ bill. The compromise would have prohibited states from imposing new AI regulations for five years in exchange for federal funding, a reduction from the original 0-year moratorium. However, Blackburn withdrew her support, arguing the provision fails to protect citizens from tech abuses. The collapse of the agreement highlights growing tensions within the Republican Party over the balance between federal oversight and state authority in regulating emerging technologies.