In a close decision, Vice President JD Vance cast the deciding vote to push Trump’s budget forward in the Senate. However, concerns over AI oversight led to the removal of a clause that would prevent states from regulating AI technologies. This clause was scrapped with a clear majority, demonstrating the Senate’s disapproval.

The original provision, part of Trump’s extensive budget bill, would have restricted states for a decade from legislating on AI, but negotiations revealed bipartisan discomfort. Even fierce backers of limited federal interference, like Senators Ted Cruz and Thom Tillis, found themselves at odds and reconsidered their positions amidst pressure from cultural sectors, notably Nashville’s music industry.

As the Senate version progresses, it returns to the House for further deliberation. With the clock ticking before Congress’s recess for the July 4th holiday, legislators must resolve differences swiftly if Trump is to sign it imminently. In the meantime, discussions continue, aiming for a federal stance on AI that balances regulation with innovation.