Here’s what Trump’s Big Beautiful Bill means for AI

The Republican Party’s 800-page “One Big Beautiful Bill Act” is now being debated in the Senate, with a final up-or-down vote expected as soon as Monday night. On the issue of AI, much of the attention has focused on the bill’s proposed moratorium on state-level laws regulating the development or application of AI models and apps. Notably, Senate negotiations reduced the proposed moratorium from ten years to five and added exceptions for state rules that protect kids and copyrights, so long as the rules do not “unduly or disproportionately burden” AI systems and models.

However, state preemption is only one of several major AI-related proposals in the bill. It appropriates billions of dollars for new AI initiatives across multiple federal agencies, including Defense, Homeland Security, Commerce, and Energy.

Homeland Security

The bill allocates $6.1 billion for infrastructure and systems used in border surveillance. A portion of the funding will go toward acquiring new and upgraded surveillance systems that use artificial intelligence, machine learning, or computer vision to detect, identify, classify, and track “items of interest.” It also directs DHS to develop new non-intrusive inspection equipment, potentially using AI, to detect illicit narcotics crossing the border.

Defense

For fiscal year 2025, the bill provides $450 million to develop AI and autonomous robotics systems for naval shipbuilding. It allocates $145 million for AI in aerial and naval attack drones and systems. An additional $250 million is proposed to expand AI projects within U.S. Cyber Command, and $115 million is set aside to develop AI systems that help protect nuclear facilities from cyberattacks.

Another $200 million is included to improve the speed, efficiency, and cybersecurity of the systems the Pentagon uses to audit its financial statements.

Commerce

The bill amends existing law to include AI systems and “automated decision systems” as eligible projects under the Broadband Equity, Access, and Deployment (BEAD) Program. It also adds $500 million in funding to the program for fiscal year 2025.

In addition, the bill allocates $25 million to the Commerce Department for constructing, acquiring, and deploying AI infrastructure required to run AI models and systems. The bill states that any state not complying with the five-year moratorium on AI regulation will be ineligible for these funds.

Public interest and tech advocacy groups have strongly criticized the provision, arguing it effectively forces states to choose between essential broadband funding and their ability to oversee AI development responsibly.

“Congress should abandon this attempt to stifle the efforts of state and local officials who are grappling with the implications of this rapidly developing technology, and should stop abdicating its own responsibility to protect the American people from the real harms that these systems have been shown to cause,” Center for Democracy and Technology CEO Alexandra Reeve Givens said in a statement Monday.

Energy

The bill provides $150 million to the Energy Department to develop and share data and AI models. It instructs the agency to work with national and commercial labs to curate Department of Energy data for use in new AI models. The government believes this energy usage data can support the private sector in developing “next generation microelectronics” that consume less power. The Energy Department will also share its AI models with private-sector researchers “to accelerate innovation in discovery science and engineering for new energy technologies.”