
In a resounding 99–1 vote, the harmful AI moratorium provision was removed from the budget reconciliation bill last night. This marks a decisive bipartisan victory for local communities, environmental protections, and scenic preservation. This provision, which was introduced by Senator Ted Cruz (R-TX) and later modified by Senator Marsha Blackburn (R-TN), would have originally imposed a ten-year freeze on state and local AI regulations in exchange for access to a $500 million federal AI infrastructure fund. Had the provision passed, it would have fast-tracked the unchecked development of ugly and energy-intensive data centers across the country, stripping communities of their ability to regulate where and how these massive facilities are built, devastating scenic landscapes and rural character.
This win comes days after Senator Mike Lee (R-UT) withdrew his proposal to sell millions of acres of public land belonging to the United States Forest Service and Bureau of Land Management after fierce bipartisan opposition.
Senators Blackburn and Maria Cantwell (D-WA) emerged as key champions in the successful effort to strike the moratorium. After initially supporting a compromise version of the provision, Senator Blackburn ultimately reversed course, citing concerns about government overreach and the impact on creators and child safety. She joined Senator Cantwell, who had long opposed the moratorium, in co-sponsoring the amendment to remove it entirely. Their bipartisan leadership ensured that the Senate reaffirmed its commitment to state and local authority over AI regulation and environmental oversight. Scenic America is deeply grateful for their courage and conviction.
The moratorium would have set a dangerous precedent by tying federal funding to a surrender of local control. It threatened to undermine efforts in states like Washington and Tennessee that have already enacted important laws on deepfakes, data privacy, and infrastructure siting. Worse, it would have invited a wave of sprawling server farms into rural and scenic areas with little to no public input. Without strong permitting processes and environmental standards, these developments risk overwhelming natural landscapes and diminishing the character of communities across the nation.
Thanks to the leadership of Senators Blackburn and Cantwell—and the near-unanimous support of their colleagues in the Senate—this misguided provision is no longer a threat. Scenic America celebrates this outcome as a victory not only for good governance and environmental protection, but for the idea that states and communities must retain the right to shape their own future. While Scenic America is not opposed to data centers, we firmly believe that environmental policy and AI infrastructure can coexist to form best practices. We will continue to advocate for responsible, sustainable infrastructure development that honors scenic values, climate goals, and the voices of the people most impacted.