The GB News presenter and former Brexit Party leader joined Welsh Tory leader Andrew RT Davies in condemning the move.
A spokesman for Elin Jones, the Senedd’s Llywydd – the presiding officer – said the channel was removed following a broadcast that was “contrary to our parliament’s values”.
Actor-turned-politician Laurence Fox was sacked by the channel earlier this month following comments he made on-air about a female journalist, including asking “who would want to shag that?”.
The decision to remove GB news will be considered by the Senedd’s cross-party commission at a later date, with the channel still available online.
The spokesman for Ms Jones said: “GB News has been removed from the Senedd’s internal television system following a recent broadcast that was deliberately offensive, demeaning to public debate and contrary to our parliament’s values.
“There are now several ongoing Ofcom investigations into the channel.
“The commission will discuss the issue at a future meeting, and staff and members who wish to view GB News will still be able to do so online in the Senedd.”
Mr Davies said: “This is a disgraceful decision. It’s censorship. Pure and simple.”
Although the decision was taken by the Senedd, rather than Mark Drakeford’s government, Mr Farage hit out at Labour.
“This shows just how awful the Welsh Labour administration is,” he said. “They are totalitarian in their thinking and behaviour.
“Is this what lies in store for the whole of the UK under (Sir Keir) Starmer?”
Welsh Secretary David Davies also accused Mr Drakeford’s administration of imposing a “blanket ban” on the station on Senedd televisions, calling it an “appalling” move.
“Plurality of the media is crucial to ensure a functioning democracy,” he said.