Trump Considering Executive Order To Preempt State Ai Laws

Bonisiwe Shabane

-Dec 4, 2025, 9:20 PM

trump considering executive order to preempt state ai laws

President Donald Trump speaks during the Saudi Investment Forum at the Kennedy Center, Wednesday, Nov. 19, 2025, in Washington. (AP Photo/Evan Vucci) President Donald Trump is considering pressuring states to stop regulating artificial intelligence in a draft executive order obtained Thursday by The Associated Press, as some in Congress also consider whether to temporarily block states... Trump and some Republicans argue that the limited regulations already enacted by states, and others that might follow, will dampen innovation and growth for the technology. Critics from both political parties — as well as civil liberties and consumer rights groups — worry that banning state regulation would amount to a favor for big AI companies who enjoy little to...

While the draft executive order could change, here’s what to know about states’ AI regulations and what Trump is proposing. Reporting by Karen Freifeld in New York; Additional reporting by Jody Godoy; Editing by Chris Sanders, Chris Reese and Daniel Wallis Our Standards: The Thomson Reuters Trust Principles., opens new tab According to multiple reports, the Trump administration is circulating a draft executive order ("EO") that would challenge state AI laws through federal litigation and funding restrictions. If signed, the EO could create immediate compliance uncertainty for organizations operating under state requirements that remain legally enforceable while potentially facing years of federal legal challenges. The six-page draft, titled "Eliminating State Law Obstruction of National AI Policy," deploys a multi-agency strategy:

AI Litigation Task Force (Section 3). The Attorney General would be required to establish, within 30 days, a task force “whose sole responsibility shall be to challenge State [sic] AI laws, including on grounds that such laws unconstitutionally regulate interstate... Federal Identification of State Laws (Section 4). Within 90 days, the Secretary of Commerce would be required to identify state AI laws that “require AI models to alter their truthful outputs” or compel disclosures that “would violate the First Amendment or... Broadband Funding as Leverage (Section 5). States with identified AI laws would be "ineligible for non-deployment funds" under the Broadband Equity Access and Deployment ("BEAD") Program unless they agree "not to enforce any such laws during any year in which...

A draft executive order reveals the Trump administration is preparing to challenge state artificial intelligence laws as unconstitutional, condition federal funding on state compliance and deploy the Department of Justice to litigate against non-conforming... Many in the tech industry agree on the need for federal policy that would preempt a patchwork of state laws. But not all speak with the same voice. The draft is a bold move toward halting state action without a national framework in its place. Supporters argue that a unified federal approach is necessary to protect U.S. competitiveness, prevent compliance costs from escalating across 50 jurisdictions and keep pace with global rivals as they accelerate their own AI strategies.

Critics counter that, in the absence of federal protections, preempting state laws would strip away the only meaningful guardrails currently in place and weaken safeguards for consumers, workers and civil rights. These are the areas where states have been first movers. Earlier this summer, the proposal for a moratorium blocking state AI legislation was removed the One Big Beautiful Bill Act, the Republican budget reconciliation package. The Senate was unable to unify support with prominent MAGA Republicans like Sen. Josh Hawley of Missouri, who recently stated that “as a Republican who believes in federalism, I think it’s a strange argument for some Republicans to make in this building that all of a sudden... In July, the White House’s AI Action Plan set the direction for an accelerationist vision — the belief that AI development should proceed as fast as possible with minimal regulatory friction.

It framed AI progress as a geopolitical race for economic and national security dominance, echoing preferences in the Silicon Valley venture community while diverging from civil society voices calling for a more balanced approach. US President Donald Trump is considering signing an executive order that would seek to challenge state efforts to regulate artificial intelligence through lawsuits and the withholding of federal funding, WIRED has learned. A draft of the order viewed by WIRED directs US attorney general Pam Bondi to create an “AI Litigation Task Force,” whose purpose is to sue states in court for passing AI regulations that... Trump could sign the order, which is currently titled “Eliminating State Law Obstruction of National AI Policy,” as early as this week, according to four sources familiar with the matter. A White House spokesperson told WIRED that “discussion about potential executive orders is speculation.” The order says that the AI Litigation Task Force will work with several White House technology advisors, including the special adviser for AI and crypto, David Sacks, to determine which states are violating federal...

It points to state regulations that “require AI models to alter their truthful outputs” or compel AI developers to “report information in a manner that would violate the First Amendment or any other provision... The order specifically cites recently enacted AI safety laws in California and Colorado that require AI developers to publish transparency reports about how they train models, among other provisions. Big Tech trade groups, including Chamber of Progress—which is backed by Andreessen Horowitz, Google, and OpenAI—have vigorously lobbied against these efforts, which they describe as a “patchwork” approach to AI regulation that hampers innovation. These groups are lobbying instead for a light-touch set of federal laws to guide AI progress. An executive order that could soon be signed by President Donald Trump would thwart states' artificial intelligence laws by launching legal challenges and withholding federal funding, according to a draft of the order obtained... The draft surfaced shortly after Trump publicly called for a single federal standard on AI "instead of a patchwork of 50 State Regulatory Regimes."

The draft order would give Attorney General Pam Bondi 30 days to establish an "AI Litigation Task Force" whose sole task is to challenge state AI laws. Those challenges would be issued "on grounds that such laws unconstitutionally regulate interstate commerce, are preempted by existing Federal regulations, or are otherwise unlawful in the Attorney General's judgment," the draft says. The order also directs Commerce Secretary Howard Lutnick to notify states with contested AI laws that they are ineligible for funds under the federal Broadband Equity Access and Deployment program. BEAD is a more than $42 billion program that has allocated funding to all U.S. states and territories. President Donald Trump has drafted an executive order that would block states from enforcing regulations around artificial intelligence, renewing an AI deregulation push that’s raising concerns among tech safety advocates and state lawmakers on...

The draft order directs the US attorney general to establish an AI Litigation Task Force to challenge state AI laws and preempt them with Trump’s more lax federal policy, according to a copy viewed... The fast-moving technology is already subject to little oversight as it extends into more areas of life — from personal communications and relationships to health care and policing. In the absence of broad federal legislation, some states have passed laws to address potentially risky and harmful uses of AI, such as the creation of misleading deepfakes and algorithmic discrimination in hiring. Critics of the preemption push worry that if left unchecked, AI companies could evade accountability should their tools harm consumers. Asked for comment about the pushback, a White House official told CNN that until officially announced by the White House, discussion about potential orders is speculation. The language in Trump’s draft order mirrors the argument from some in the tech industry, including OpenAI CEO Sam Altman, that navigating a patchwork of state laws would slow down innovation and could affect...

Trump Considering Executive Order To Preempt State Ai Laws

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