The Senate Energy and Commerce Committee, led by Republicans, has rolled out its own version of the House budget bill. In this proposal, states get a modified 10‑year pause on enforcing certain AI laws – but only if they want access to a new US$500 million fund for the Broadband, Equity, Access, and Deployment (BEAD) Programme at the Commerce Department. Notably, the suspension won’t affect rules designed to ease legal hurdles or promote AI deployment.
This revised approach is designed to meet the Byrd rule’s requirements, linking the legislative provision to fiscal measures. It might even alleviate concerns among GOP critics by giving states the option to opt in. Senate Majority Leader John Thune (R‑SD) summed up the uncertainty with a casual “we’ll see,” and the final decision rests with the Senate parliamentarian – though Thune can swap out the scorekeeper if necessary.
Meanwhile, GOP Senators Josh Hawley and Marsha Blackburn, who previously opposed the House proposal, have yet to comment on the Senate’s version. Blackburn even voiced support for the overall bill on social media, while Hawley criticised other components, such as proposed Medicaid cuts. Back in the House, Rep. Marjorie Taylor Greene (R‑Ga.) warned she might withdraw her vote if the slowdown remains, citing worries over federal overreach and its impact on state sovereignty.
Adding to the mix, the Senate bill offers a compromise that would allow the Federal Communications Commission (FCC) to resume spectrum auctions, potentially unlocking US$85 billion in revenue. The FCC’s auction authority, which expired in 2023 following disputes over bandwidth reserved for military use, could now be extended until 2034. The plan calls for auctioning 800 megahertz of spectrum over the course of eight years.
