AI Policy Newsletter - July 2, 2025

• AI Moratorium Stripped from Reconciliation Package: On July 1, the Senate passed its budget reconciliation package without a provision that would have placed a moratorium on state AI regulation after the chamber voted 99-1 on an amendment from Senator Marsha Blackburn (R-TN) to strip the proposal. Blackburn had earlier reached a deal with Senator Ted Cruz (R-TX) that would have limited the moratorium to five years, tied to states receiving any portion of $500 million in new federal funding for AI deployment. However, she ultimately reversed her position stating that, without a federal privacy framework in place, “this provision could allow Big Tech to continue to exploit kids, creators, and conservatives.” As of this writing, the House is expected to pass the Senate bill this week, as the President works hard to gain final approval.

  
  

• House Leaders Introduce Bipartisan Anti-CCP AI Bill: On June 25, House Select Committee on the CCP Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) introduced the No Adversarial AI Act, legislation that would prohibit U.S. executive agencies from using artificial intelligence developed by companies with ties to adversaries like the Chinese Communist Party. The bipartisan legislation, would also create a public list of such AI systems, maintained and updated by the Federal Acquisition Security Council. Companion legislation in the Senate was introduced by Rick Scott (R-FL) and Gary Peters (D-MI).

  
  

• President Trump Heightens Focus on AI’s Energy Needs: President Trump is scheduled to attend Senator David McCormick’s (R-PA) inaugural Pennsylvania Energy and Innovation Summit on July 15, alongside AI Czar David Sacks, Energy Secretary Chris Wright, White House Chief of Staff Susie Wiles, as well as CEOs from Open AI, Meta and Microsoft. White House Press Secretary Karoline Leavitt emphasized in a statement that the summit will focus on “creating thousands of good jobs, developing critical AI infrastructure, and unleashing Pennsylvania’s energy industry.” Meanwhile, Reuters reported that the Trump administration is preparing to release a set of executive orders with the goal of bolstering energy to power AI data centers and infrastructure. Potential proposals under discussion include making it easier for power-generating projects to connect to the grid and providing federal land to build AI data centers, according to sources.

Download the full newsletter here.