Trump revives unpopular Ted Cruz plan to punish states that impose AI laws

The FTC chairman would be required to issue a policy statement detailing “circumstances under which State laws that require alterations to the truthful outputs of AI models are preempted by the FTC Act’s prohibition on engaging in deceptive acts or practices affecting commerce.”

When Cruz proposed a moratorium restricting state AI regulation in mid-2025, Sen. Marsha Blackburn (R-Tenn.) helped lead the fight against it. “Until Congress passes federally preemptive…