Trump’s Executive Order Could Penalize States Over AI Regulations
▼ Summary
– President Trump signed an executive order to establish a federal regulatory framework for AI, aiming to preempt state-level AI laws.
– The order creates a Justice Department task force to challenge conflicting state laws and uses Commerce Department guidelines to penalize states with “onerous” regulations.
– The push for federal preemption is driven by AI investors and tech groups who argue state-level rules could harm innovation and U.S. competitiveness.
– The order includes a legislative recommendation with a carve-out, asking Congress not to preempt state laws protecting children, promoting data centers, or encouraging AI procurement.
– It specifically criticizes certain state laws, like Colorado’s anti-discrimination bill, as embedding “ideological bias,” and may target other state regulations in California and New York.
A new executive order from President Donald Trump aims to create a unified national approach to artificial intelligence regulation, a move designed to prevent a complex patchwork of state laws that the administration argues could hinder innovation and America’s global competitiveness. The order establishes mechanisms to challenge state-level AI rules and could potentially restrict federal funding to states enacting regulations deemed overly burdensome.
The directive, known as “Ensuring a National Policy Framework for Artificial Intelligence,” initiates two primary actions. First, it forms a dedicated task force within the Justice Department with the authority to legally contest state AI laws that conflict with federal priorities. Second, it instructs the Commerce Department to develop guidelines that may withhold future broadband funding from states passing what the administration considers “onerous” AI regulations.
This drive for federal oversight has received strong backing from AI investors, conservative think tanks, and major technology trade associations. These groups consistently warn that disparate state regulations could stifle growth in Silicon Valley and put the United States at a disadvantage internationally. White House adviser David Sacks, a key figure on AI and crypto policy, has championed this lighter regulatory touch. During the signing ceremony, Sacks told the President the order provides “tools to push back on the most onerous and excessive state regulations,” while noting protections for areas like children’s safety would remain.
While similar to a previously circulated draft, the finalized order includes notable adjustments. It directs Sacks and Michael Kratsios, the assistant to the president for science and technology, to prepare a legislative proposal for a federal AI policy framework. A newly added provision within that recommendation asks Congress to avoid preempting state laws focused on protecting children, supporting data center infrastructure, and encouraging state governments to adopt AI tools.
President Trump emphasized the need for centralized approval during the signing event. “We want one central source of approval,” he stated, arguing that navigating fifty different state regulatory regimes is impractical even for reasonable changes. He expressed confidence in bipartisan support for the concept, calling it “common sense.”
The order emerges against a backdrop of vigorous state-level activity. In the absence of comprehensive federal rules, numerous states have advanced their own investigations and legislation to control AI development and deployment. The executive order explicitly criticizes certain state efforts, labeling Colorado’s SB24-205, a bill designed to curb “algorithmic discrimination”, as an attempt to “embed ideological bias.”
Other state laws are also likely to face scrutiny under this new federal posture. California Governor Gavin Newsom recently signed legislation mandating that large technology firms publish safety frameworks for their AI models. Meanwhile, New York’s legislature passed a bill that would allow the state attorney general to impose civil penalties of up to $30 million on AI developers failing to meet safety standards. That bill awaits action from Governor Kathy Hochul, who is reportedly considering amendments that could substantially alter its impact.
(Source: Wired)
