Ted Cruz bill: States that regulate AI will be cut out of $42B broadband fund

Sen. Ted Cruz is proposing a 10-year moratorium on AI regulations as part of his budget reconciliation efforts to block states from receiving broadband funding if they regulate AI deployment. By conditioning BEAD funds on this moratorium, Cruz aims to limit states' ability to protect consumers against AI abuses while also restricting their access to infrastructure subsidies for expanding broadband networks. This move has drawn criticism from consumer advocacy groups like Public Citizen, who argue it undermines state sovereignty and promotes undemocratic policies.