In a setback for Donald Trump, his fellow Republicans in House of Representatives have failed to pass the president's "big, beautiful" package of tax breaks and spending cuts, starkly exposing the party's budgetary divisions.

U.S. President Donald Trump's sweeping tax bill failed to clear a key procedural hurdle on Friday, as hardline Republicans demanding deeper spending cuts blocked the measure in a rare political setback for the Republican president in Congress.

WASHINGTON (AP) — House Republicans surprised tech industry watchers and outraged state governments when they added a clause to Republicans’ signature “ big, beautiful ” tax bill that would ban states and localities from regulating artificial intelligence for a decade.