University of Kwazulu-Natal

White House Prepares Executive Order To Block State Ai Laws

Bonisiwe Shabane
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white house prepares executive order to block state ai laws

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. 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 Last Tuesday, a draft executive order (EO) from the White House overriding states’ artificial intelligence (AI) laws was leaked. The draft EO was a surprise, considering that a moratorium on state AI laws was voted down 99-1 by the U.S. Senate on July 1, and the White House then said on July 10 that the federal government would not interfere with states’ rights if they pass “prudent AI laws.”

While the White House stated last week that another AI-related EO was only speculation, the leaked draft EO raises several issues for AI governance — the combination of principles, laws and policies that relate... Yesterday, the White House pivoted from the draft EO to issue a fact sheet to “accelerate AI for scientific discovery” and an EO launching the Genesis Mission, an integrated platform designed to harness datasets... The new EO includes directives to combine efforts with the private sector and incorporate security standards. The draft EO reiterates the AI Action Plan edict that “national security demands that we win this [AI] race” and asserts that state legislatures have introduced over 1,000 AI bills that threaten to undermine... The draft declares that the White House “will act to ensure that there is a minimally burdensome national standard — not 50 discordant state ones.” Of the more than “1,000 AI bills” the draft EO threatens to override, it calls out two consumer privacy AI laws — California’s Transparency in Frontier Artificial Intelligence Act (i.e., Senate Bill 53) and...

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... According to reports published on November 19, the White House has prepared a draft Executive Order to preempt state AI regulations in lieu of a uniform national legislative framework, marking a significant escalation in... The draft Executive Order, titled “Eliminating State Law Obstruction of National AI Policy” (and marked “Deliberative/Predecisional/Draft”) (“draft EO”), outlines a sweeping, multi-pronged effort to “sustain and enhance America’s global AI dominance through a minimally... The draft EO directs White House officials and federal agencies to take various steps to preempt or challenge certain state AI regulations deemed unconstitutional or inconsistent with federal law, or to withhold federal funding... Although the operative provisions of the draft EO do not expressly target any particular state AI laws, the statement of purpose specifically references the Colorado AI Act, which establishes reporting, impact assessment, and transparency... While these laws are noted as motivating factors for the draft EO, agency actions taken pursuant to the draft EO would presumably apply to state laws deemed to conflict with the policies adopted in...

The draft EO follows a series of recent efforts to curb state AI laws and, if ultimately finalized, could reshape the balance of federal and state authority over AI regulation. On July 1, the Senate, by a 99–1 vote, rejected a proposed amendment to the budget reconciliation bill, the One Big Beautiful Bill Act, that would have imposed a moratorium on state and local... Later in July, the White House released its AI Action Plan, which called on federal agencies to limit funding to states with “burdensome” AI laws and urged the FCC to evaluate potential preemption under... And in recent weeks, and with support from the President, House Republicans have renewed efforts for federal legislation to preempt state AI laws, pushing to include an AI preemption provision in the Fiscal Year... While it remains uncertain whether President Trump will ultimately issue the draft EO as prepared or whether the latest legislative efforts to preempt state AI legislation will succeed, the debate over the proper scope... U.S.

President Donald Trump arrives to welcome Crown Prince and Prime Minister Mohammed bin Salman of Saudi Arabia to the White House on November 18, 2025 in Washington, DC. Andrew Harnik/Getty Images President Donald Trump is weighing an executive order that would disincentivize states from passing any new artificial intelligence regulations by withholding federal funding from noncompliant states. In a circulated draft of the order — titled “Eliminating State Law Obstruction of National AI Policy” — Trump stresses his administration’s light-touch regulatory preference, saying U.S.-made AI products need an industry-friendly environment to... “American AI companies must be free to innovate without cumbersome regulation,” the draft order reads. “But State legislatures have introduced over 1,000 AI bills that threaten to undermine that innovative culture.”

Notably, the order would restrict various federal funding programs for states if their domestic AI laws are found to hinder the administration’s AI policy. The Department of Commerce would be tasked with evaluating potentially “onerous” state AI laws, along with AI and Crypto Czar David Sacks. 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.

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