Senate Clears the Way for State AI Regulation. Meta, Amazon, and Alphabet Stock Fall.

The moratorium on AI regulation in the Republican tax-and-spending bill would have banned states from enforcing limits on the technology for at least five years—and would have blocked federal funding from those that did, with some exceptions. Only Republican Sen. Thom Tillis (Fla.) voted to keep the provision. Trump’s megabill narrowly passed the Senate Tuesday and now heads to the House.