Ted Cruz sneaks in loophole for AI
Republicans were afraid H.R. 1 wouldn't pass due to Byrd's Rule, so Sen. Ted Cruz slipped in new language that would withhold funding for broadband from states that try to regulate 'AI'.
As of June 6, new issues have come up about the "One Big, Beautiful Bill Act" and this requires new collective action.
Context
Republicans are afraid that H.R. 1, the "One Big, Beautiful Bill Act," may not pass because of Byrd's Rule which limits "extraneous matter" from being included in Budget Reconciliation bills.
- That's the bill that would cut Medicaid, ban Medicaid coverage of gender-affirming care, and prevent states from regulating 'AI' for 10 years.
- The "extraneous matter" in question is the ban on regulating AI which is NOT related to budget matters.
So instead, Ted Cruz created a loophole. He allocated $500M more for broadband subsidies through the BEAD program BUT states may only receive the money if they do NOT have any regulations on AI. It may come across more like a budget-related item to some Senators.
- "No money would be given to any state or territory that enforces 'any law or regulation... limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce.'"
- Cruz also slipped in language so that BEAD grant recipients would NOT be able to offer low-cost internet plans to people with low-income.
Action
Contact your Senators to expose and oppose Ted Cruz's loophole that would allow 'AI' to be unregulated using the script below or your own.
Find your elected officials: https://5calls.org/
Script
Hi {name of Senator},
My name is {your name} and I am your constituent in ZIP code {your zip code}.
I am contacting you to expose and oppose the "One Big, Beautiful Bill Act" in the context of 'AI'.
- You may already oppose the bill for cutting Medicaid, banning Medicaid coverage of gender-affirming care, and increasing the deficit to fund tax breaks for billionaires.
- But I need you to ALSO oppose how the bill would let 'AI' technology be unregulated for 10 YEARS.
- Sen. Ted Cruz was afraid the bill wouldn't pass due to Byrd's Rule, so he slipped in new language that would withhold funding for broadband from states that try to regulate 'AI'.
For context:
- Today's generative 'AI' technology requires the mass-scraping of media from the internet WITHOUT the informed consent of the original creator. That's theft.
- And it is only used for misinformation, disinformation, non-consensual intimate imagery, CSAM (which is directly in data sets), scams, and circumventing paying for labor.
- Without regulations, the 'AI' industry will only enable more malicious use.
I am urging you to:
- Expose Ted Cruz's loophole and the dangers of unregulated 'AI'.
- Oppose H.R. 1: delay and vote NO on the bill.
Thank you for your time.
Sources
Brodkin, Jon. (2025, June 6). Ted Cruz bill: States that regulate AI will be cut out of $42B broadband fund. Ars Technica. https://arstechnica.com/tech-policy/2025/06/ted-cruz-bill-states-that-regulate-ai-will-be-cut-out-of-42b-broadband-fund/
Congressional Budget Office. (2025, June 4). Estimated Budgetary Effects of H.R. 1, the One Big Beautiful Bill Act. https://www.cbo.gov/publication/61461
Yilek, Caitlin. (2025, June 4). Trump budget bill would increase deficit by $2.4 trillion with 10.9 million more uninsured by 2034, CBO says. CBS News. https://www.cbsnews.com/news/congressional-budget-office-cbo-estimate-trump-big-beautiful-bill-deficit-health-insurance/