In a significant move, the US Senate has overwhelmingly voted to remove a proposed moratorium on state-level AI regulations from a key budget bill associated with Trump, in a decision that stands in contrast to the interests of major tech companies. The vote, which passed with a staggering 99-1 majority, allows states to establish their own AI rules, a development seen by many as a victory for federalism and child safety advocates. Despite attempts by some Republican senators to impose a federal ban on state regulations, bipartisan pushback culminated in the removal of the restriction. The decision has drawn mixed reactions, with advocates praising it as a necessary step for accountability in AI governance, while tech firms like Meta, Amazon, and Alphabet have witnessed a decline in stock prices as a result.