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Trump’s ‘big, beautiful bill’ dodges Big Tech power grab as key AI provision gets axed

The complete expulsion of an artificial intelligence (AI)-related amendment in President Donald Trump’s “big, beautiful bill” is supposedly a big win for American families, businesses and the administration itself, according to one legal watchdog group.

“The removal of the 10-year and 5-year AI moratorium from Trump’s bill is a major victory,” Article III Project President and founder Mike Davis told Fox News Digital on Tuesday. “We don’t need to degrade ourselves like China to outcompete them.”

“We believe in protecting our children, safeguarding intellectual property, and ensuring our system of free speech, self-governance and innovation thrives,” he continued. “This provision would have handed over our cultural and economic future to Big Tech oligarchs.”

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In the early morning hours on Tuesday, an agreement collapsed between Sens. Marsha Blackburn, R-Tenn., and Ted Cruz, R-Texas. A moratorium that would have required states seeking to access hundreds of millions of dollars in AI infrastructure funding in the “big, beautiful” bill to refrain from adopting new regulations on the technology for five years — a compromise down from the original 10 years — was totally removed from the bill.

US Capitol Building during sunrise

The U.S. Capitol at dawn during a vote-a-rama, on July 1, 2025 in Washington, DC. (Getty Images)

“For as long as I’ve been in Congress, I’ve worked alongside federal and state legislators, parents seeking to protect their kids online, and the creative community in Tennessee to fight back against Big Tech’s exploitation by passing legislation to govern the virtual space,” Blackburn recently said in a statement to Fox News.

Blackburn added: “Until Congress passes federally preemptive legislation like the Kids Online Safety Act and an online privacy framework, we can’t block states from making laws that protect their citizens.”

When asked about Blackburn pulling her support for the compromise, Cruz told Punchbowl News the “night is young.”

“This is a win because it ensures that America remains the land of innovation,” Davis told Fox News Digital. “Big Tech oligarchs, on the other hand, see this as a setback because it limits their ability to control and exploit technology unchecked. They’ve had a free pass under Section 230, and this rebuke is a direct challenge to their monopolistic grip on our lives and economy.”

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“We’re still firm in the belief that America doesn’t need to copy China’s model of grotesque cheating to win the AI race. As Senator Blackburn put it, Congress has proven it can’t legislate on emerging tech,” Davis noted, “but states are already stepping up to protect children, intellectual property and free expression.”

In the early afternoon Tuesday, the Senate officially sent the $3.3 trillion “big, beautiful bill” back to the House, with Vice President JD Vance as the tie-breaking vote.

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Fox News’ Landon Mion and Kelly Phares contributed to this report.

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