Senator Cruz Faces Obstacles in Bid to Preempt State AI Standards
Texas Senator Ted Cruz is currently encountering significant challenges in his efforts to establish federal regulations for artificial intelligence (AI). This initiative aims to circumvent what Cruz describes as a chaotic and fragmented array of state laws, with California now leading the charge in setting regulatory standards.
The stakes surrounding this issue are notably high. Cruz, alongside the White House, is focused on centralizing regulatory power to prevent states, particularly California, from dictating the framework for AI governance. California is recognized as the epicenter of the technology economy in the United States, holding a substantial share of the country’s tech GDP.
State-Level Legislative Activity
In addition to California’s proactive approach, only two other states have made substantial strides in AI legislation. New York’s Responsible AI Safety and Education Act addresses potential risks associated with advanced AI technologies and aligns with California’s transparency measures. This act passed in June 2025. Meanwhile, Michigan’s AI Transparency Act is pending approval and focuses on industry transparency duties.
Cruz’s Legislative Framework
On September 10, Cruz introduced a comprehensive five-pillar legislative framework designed to bolster American leadership in AI. He has also proposed the Sandbox Act, which seeks to reinstate a previously proposed ten-year moratorium on state and local AI regulations that was removed from the GOP’s broader legislative agenda. The bill is awaiting action from the Senate Committee on Commerce, Science, and Transportation, which Cruz chairs.
Despite lacking co-sponsors, the bill has attracted support from notable Big Tech trade organizations, including the Abundance Institute and the U.S. Chamber of Commerce.
California’s Legislative Push
Following the failure of the proposed federal moratorium on state AI regulations in July, California seized the opportunity to advance its own regulatory agenda. In the closing days of the legislative session, California lawmakers passed two significant bills:
- SB 53: A transparency and safety bill for developers of frontier AI, requiring large model creators to publish risk frameworks and report critical safety incidents.
- SB 243: The first legislation of its kind to impose regulations on AI companion chatbots, mandating the implementation of suicide-prevention protocols and restricting harmful content for minors.
SB 53 is particularly significant as it aims to hold AI developers accountable while allowing them to maintain competitive advantages. This legislation reflects a shift towards making voluntary safety commitments mandatory.
Concerns Over Fragmentation
During a recent summit, Cruz reiterated that the moratorium is “not at all dead,” emphasizing the potential pitfalls of allowing fragmented state standards to emerge, which could undermine U.S. competitiveness in AI technology. The White House has expressed clear reservations about California setting a national standard, with policy advisors advocating for minimal regulatory interference to foster innovation.
Balancing Innovation and Regulation
Cruz’s Sandbox Act serves as a critical test of his strategy to navigate the complexities of federal versus state regulation. The bill proposes that AI companies could apply for waivers from specific federal regulations, provided they disclose and mitigate safety risks. This approach is intended to prevent a fragmented regulatory landscape while still promoting innovation.
However, Cruz faces significant challenges as states like Texas also advance their own AI regulations. Texas recently enacted the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), which introduces comprehensive AI governance measures, including regulating social scoring and creating a Texas AI Council.
Conclusion
The ongoing federal-state standoff regarding AI regulation illustrates the tension between promoting innovation and ensuring public safety. As Senator Cruz pushes for a cohesive federal framework, the actions taken by California and other states will significantly influence the future landscape of AI legislation in the United States.
