Trump&#x27;s Executive Order Targets State AI Laws, Sparking Bipartisan Pushback and Legal Uncertainty

States defiant in face of Trump's AI executive order

Why it matters: Trump's order is expected to pull states into legal battles and leave the U.S. AI rulebook in flux unless Congress acts. * The order looks to gut state AI laws by launching legal challenges and conditioning federal grants on compliance. What they're saying: Policymakers behind key state AI bills scoffed at the order, and some vowed to bring legal action if the White House moves forward with implementation. * "It's absurd for Trump to think he he can weaponize the DOJ and Commerce to undermine those state rights," said California state Sen. Scott Wiener, who authored a state AI bill, SB 53, that was signed into law this year. * "If the Trump Administration tries to enforce this ridiculous order, we will see them in court." * New York state Assemblymember Alex Bores, who is behind a similar AI bill to SB 53 and is running for Congress, said in a statement that Trump is "throwing the door wide open" for "out-of-control AI development" and Congress needs to put guardrails in place "before it's too late." Republican governors who previously spoke up against the preemption effort are charging ahead with their own AI plans. * Florida Gov. Ron DeSantis has a proposal for an AI Bill of Rights in the works that would establish parental controls, data privacy, consumer protection and restrictions on non-consensual use of a person's name, image and likeness as well as to protect against data center-related harms. * He's previously objected to Congress wanting to block state regulation without coming up with a "coherent regulatory scheme." * Ahead of the executive order's unveiling, Utah Gov. Spencer Cox called for a MAGA-backed alternative that would protect kids and America competitiveness. The alternative proposals were not reflected in the executive order, and ex-Trump adviser Steve Bannon, a major MAGA voice, told Axios that AI czar David Sacks is "completely" misleading the president on preemption. Between the lines: The White House can't preempt state-level regulation -- that's Congress' job -- and the order punts the thorniest issues like kids' safety, censorship, and copyright back to the Hill. * Sen. Maria Cantwell (D-Wash.) said the executive order is "overly broad" and that Congress needs to "get it right and pass a bipartisan national AI framework." * Sen. Marsha Blackburn (R-Tenn.), who fought against congressional efforts for a state AI moratorium and has been vocal about protecting kids and artists online, said that she'll work with the president to draft the federal framework called for in the order. * Sen. Brian Schatz (D-Hawaii), meanwhile, said he plans to introduce legislation to repeal the order. What's next: A lot of litigation.

[26]

Mashable

Trump signs 'one rule' AI executive order against states

AI is still the Wild West when it comes to government regulation. But 2025 was the year U.S. states started to make an effort. Some states, including California and New York, passed legislation that required some pretty basic things from AI companies -- including transparency, whistleblower protections, and the well-being of teen users in particular. Tech world proponents of unfettered AI innovation have made no secret of wanting to shut down state-based regulation efforts, arguing that such laws would dampen growth and give China an advantage in AI. On Thursday, President Donald Trump signed an executive order that attempts to federalize AI regulation, calling for a "national framework." "To win, United States AI companies must be free to innovate without cumbersome regulation," the order says. "But excessive State regulation thwarts this imperative." States with "onerous AI laws" may be punished through withholding of federal funds that help provide high-speed internet access to rural areas, according to the order. Agencies may condition their state grants on not enacting an AI law that conflicts with the order's policy. The executive order was produced in consultation with David Sacks, a tech venture capitalist and the Trump administration's special advisor for AI and crypto. A New York Times investigation recently revealed how many of Sacks' investments will benefit from his policies. Michael Kleinman, head of US Policy at the the tech research nonprofit Future of Life Institute, called the order a "gift for Silicon Valley oligarchs." "No other industry operates without regulation and oversight, be it drug manufacturers or hair salons; basic safety measures are not just expected, but legally required," Kleinman says. "AI companies, in contrast, operate with impunity. Unregulated AI threatens our children, our communities, our jobs and our future." OpenAI, the maker of ChatGPT, is being sued by multiple families of teens who died by suicide after heavy engagement with the chatbot. The company recently denied responsibility for the death of Adam Raine, a 16-year-old who talked to ChatGPT about his suicidal feelings and killed himself earlier this year. The order states that the national framework should "ensure that children are protected." The same day Trump signed the order, a trio of child safety advocacy groups began airing a PSA highlighting the dangers of AI chatbots for children. The spot ends with an appeal not to stop states from regulating AI. Earlier this year, Trump's One Big Beautiful Bill Act attempted to ban state regulation of AI for 10 years, a provision that Republican Congresswoman Marjorie Taylor Greene, then a Trump ally, fought against. The moratorium was very unpopular amongst registered voters, according to a poll conducted in mid-May. The measure was eventually voted down by the Senate in a stunning display of bipartisanship, 99 votes to 1. Some MAGA supporters, including Trump ally Steve Bannon, continue to oppose industry-led regulation of AI. How popular the executive order will be with that level of opposition remains to be seen -- as is the question of whether it will pass muster if challenged in the courts.

[27]

Washington Post

Opinion | AI regulation is properly a national issue

President Donald Trump holds a pen to sign an AI executive order on Thursday in the Oval Office. (Al Drago/Reuters) An executive order issued late Thursday by President Donald Trump says it is federal policy "to sustain and enhance the United States' global AI dominance through a minimally burdensome national policy framework for AI." That is the correct stance for the federal government to take. It ought to do so with legislation. The order purports to restrict states' ability to regulate AI. It sets up a litigation task force under the attorney general to challenge state laws on AI. It threatens to restrict federal funding to states that pass restrictive AI laws. It directs the FCC and FTC to take actions to assert federal primacy on the issue. These actions might not be legal. AI, like the internet, is under the federal government's jurisdiction because it concerns interstate commerce. But the Constitution gives the power to regulate interstate commerce to Congress, not the president, and past efforts to pass legislation to preempt state regulation of AI have failed. In this summer's tax bill, a provision to preempt state AI regulation was removed at the last minute to ensure passage. In the National Defense Authorization Act, which passed the House with a large majority on Thursday, Republicans again tried and failed to include such language. For the president to now try doing by executive fiat what Congress failed to do with legislation is an affront to the separation of powers, no matter how correct he is as a matter of policy. When new technologies appear, the government should wait and see what problems arise rather than proactively regulate based on fear. Some concerns with AI, such as copyright issues, are the subject of well-developed bodies of law that courts can interpret as cases are brought to them. Other concerns, such as effects on the job market, are too speculative for government to respond with any confidence that it is doing the right thing. A patchwork of state laws creates chaos for a fast-moving industry, making it harder for startups to take on established players. It also allows a single state to create a de facto regulatory regime for the entire country. AI companies aren't going to make separate products for California or Texas. State-level Republicans such as Gov. Ron DeSantis (Florida), Gov. Sarah Huckabee Sanders (Arkansas) and Gov. Spencer Cox (Utah) are among the leaders most strongly in favor of allowing states to regulate AI. The White House appears to have acknowledged some of their concerns. Trump's executive order says the federal government will not interfere with state-level child safety protections, a major concern for social conservatives. The order also says the administration will prepare legislative recommendations to implement the AI policy. That's the right thing to do. It has the added benefits of being constitutional and creating more certainty for businesses as they bring products to market. Bullying state governments on AI policy isn't a good way to create the stable business environment the administration says it wants. Trump's instinct is correct, but the process matters, both for the rule of law and the economy.

[28]

Quartz

Trump will sign executive order to block states from regulating AI

President Donald Trump walks on the South Lawn of the White House (Aaron Schwartz/CNP/Bloomberg via Getty Images). President Donald Trump said he will sign an executive order this week to bar states from regulating artificial intelligence. "There must be only one rulebook if we are going to continue to lead in AI," the president said in a Monday morning social media post. He added that the U.S.'s lead in developing the technology "won't last long" if there are 50 different sets of AI rules in place. "You can't expect a company to get 50 approvals every time they want to do something," he said. It's not clear whether such an order would kick in immediately or sometime next year. The White House did not immediately respond to a request for comment. White House National Economic Council Director Kevin Hassett said in a CNBC interview Monday that the order would help clarify the regulatory landscape for AI firms. "There are some states that want to regulate these companies within an inch of their lives," Hassett said. "This executive order that he's promised to come out is going to make it clear that there's one set of rules for American companies in the U.S." The order would hand a victory for companies like OpenAI, which has argued that maneuvering through a thicket of differing AI rules is damaging to the sector's competitiveness. As AI usage has proliferated among companies and the public, it has prompted concerns from tech safety advocates about how to adopt a cutting-edge technology capable of streamlining decision-making while also ensuring its used safely. Earlier GOP attempts to pass a moratorium in Congress have twice collapsed this year in the face of opposition from conservatives who usually favor states' rights. In addition, Florida Gov. Ron DeSantis and Arkansas Gov. Sarah Huckabee Sanders have criticized the concept of the federal government overriding states on the matter.

[29]

Decrypt

Trump's New AI Order Sets Up Federal Fight With US States Over Industry Regulation - Decrypt

Agencies were told to review state rules and weigh funding restrictions tied to compliance. President Donald Trump signed an executive order on Thursday directing the Justice Department to challenge state artificial intelligence laws, setting up a direct confrontation with states that had advanced their own rules in the absence of federal legislation. The order creates an AI Litigation Task Force under the Attorney General and instructed the Justice Department to contest state laws on federal preemption grounds and potential conflicts with interstate commerce protections. The order identified Colorado's new "algorithmic discrimination" statute as a key concern and signaled that additional state measures could face scrutiny. "My administration must act with the Congress to ensure that there is a minimally burdensome national standard -- not 50 discordant State ones," Trump wrote in the order. "The resulting framework must forbid State laws that conflict with the policy set forth in this order." In the 2025 legislative session, all 50 states considered AI-related legislation, and 38 states enacted roughly 100 AI measures, according to a report from the bipartisan National Conference of State Legislatures. In November, rumors began to circulate that Trump would issue an executive order to rein in state-backed AI policies. Thursday's executive order stipulates that "State-by-State regulation by definition creates a patchwork of 50 different regulatory regimes that makes compliance more challenging, particularly for start-ups." "To win, United States AI companies must be free to innovate without cumbersome regulation," the order said. "But excessive State regulation thwarts this imperative." The order drew immediate criticism from labor groups, technology policy organizations, and AI researchers, who said the order sidestepped documented risks from AI systems, targeted the states trying to address them, and amounted to a power grab for big tech companies. "President Trump's unlawful executive order is nothing more than a brazen effort to upend AI safety and give tech billionaires unchecked power over working people's jobs, rights, and freedoms," labor union AFL-CIO wrote in a statement. "The EO attempts to intimidate states by threatening their federal funding and infringing on their legal right to enact commonsense protections that elected leaders on both sides of the aisle support." "This executive order is designed to chill state-level action to provide oversight and accountability for the developers and deployers of AI systems, while doing nothing to address the real and documented harms these systems create," Alexandra Reeve Givens, President and CEO of the Center for Democracy and Technology, said in a statement. "Anything that goes wrong, from AI-fueled cybercrime to bioweapons attacks facilitated by AI to teen suicides apparently linked to GenAI will be on his hands, and his reputation," cognitive scientist, AI researcher, and author, Gary Marcus wrote on Substack. "And because he has become so tight with Silicon Valley, he will also be closely tied to any AI-tinged economic debacle that happens on his watch." Despite the criticism, some praised the administration's preemption approach, while others supported it but criticized its execution. "We need federal preemption of most state AI regulation in order to successfully compete with China in the race to lead AI," Director of the Center for Technology and Innovation with the Competitive Enterprise Institute, Jessica Melugin, said in a statement. "The White House gets the basic need for federal AI preemption right, but its failure to shepherd AI legislation through Congress threatens to undo the general progress the administration has made in securing American innovation," Ryan Hauser, Research Fellow with the Mercatus Center at George Mason University, wrote. The executive order followed Trump's July directive barring federal agencies from using systems the administration described as exhibiting "ideological biases."

[30]

Euronews

Trump signs executive order blocking US states from enforcing AI rules

Members of Congress from both parties, as well as civil liberties and consumer rights groups, have pushed for more regulations on AI, saying there is not enough oversight for the powerful technology. US President Donald Trump signed an executive order aimed at blocking states from crafting their own regulations for artificial intelligence (AI), saying the burgeoning industry is at risk of being stifled by a patchwork of onerous rules while in a battle with Chinese competitors for supremacy. Members of Congress from both parties, as well as civil liberties and consumer rights groups, have pushed for more regulations on AI, saying there is not enough oversight for the powerful technology. But Trump told reporters in the Oval Office on Thursday that "there's only going to be one winner" as nations race to dominate artificial intelligence, and China's central government gives its companies a single place to go for government approvals. "We have the big investment coming, but if they had to get 50 different approvals from 50 different states, you can forget it because it's impossible to do," Trump said. The executive order directs the Attorney General to create a new task force to challenge state laws and directs the Commerce Department to draw up a list of problematic regulations. It also threatens to restrict funding from a broadband deployment program and other grant programs to states with AI laws. David Sacks, a venture capitalist with extensive AI investments who is leading Trump's policies on cryptocurrency and artificial intelligence, said the Trump administration would only push back on "the most onerous examples of state regulation" but would not oppose "kid safety" measures. What states have proposed Four states -- Colorado, California, Utah and Texas -- have passed laws that set some rules for AI across the private sector, according to the International Association of Privacy Professionals. Those laws include limiting the collection of certain personal information and requiring more transparency from companies. The laws are in response to AI that already pervades everyday life. The technology helps make consequential decisions for Americans, including who gets a job interview, an apartment lease, a home loan and even certain medical care. But research has shown that it can make mistakes in those decisions, including by prioritising a particular gender or race. States' more ambitious AI regulation proposals require private companies to provide transparency and assess the possible risks of discrimination from their AI programs. Beyond those more sweeping rules, many states in the country have regulated parts of AI: barring the use of deepfakes in elections and to create nonconsensual porn, for example, or putting rules in place around the government's own use of AI.

[31]

CBS

Trump signs executive order to block "excessive" state AI regulations

President Trump signed an executive order Thursday aimed at restricting states from crafting their own regulations for artificial intelligence, saying the burgeoning industry is at risk of being stifled by a patchwork of onerous rules while in a battle with Chinese competitors for supremacy. Members of Congress from both parties, as well as civil liberties and consumer rights groups, have pushed for more regulations on AI, saying there is not enough oversight for the powerful technology. But Mr. Trump told reporters in the Oval Office that "there's only going to be one winner" as nations race to dominate artificial intelligence, and China's central government gives its companies a single place to go for government approvals. "We have the big investment coming, but if they had to get 50 different approvals from 50 different states, you can forget it because it's impossible to do," the president said. The executive order directs Attorney General Pam Bondi to create a new task force to challenge state laws, and directs the Commerce Department to draw up a list of problematic regulations. It also threatens to restrict funding from a broadband deployment program and other grant programs to states with AI laws. David Sacks, a venture capitalist who is leading Mr. Trump's policies on cryptocurrency and artificial intelligence, said Thursday the Trump administration would only push back on "the most onerous examples of state regulation" but would not oppose "kid safety" measures. Four states -- Colorado, California, Utah and Texas -- have passed laws that set some rules for AI across the private sector, according to the International Association of Privacy Professionals. Those laws include limiting the collection of certain personal information and requiring more transparency from companies. The laws are in response to AI that already pervades everyday life. The technology helps make consequential decisions for Americans, including who gets a job interview, an apartment lease, a home loan and even certain medical care. But research has shown that it can make mistakes in those decisions, including by prioritizing a particular gender or race. States' more ambitious AI regulation proposals require private companies to provide transparency and assess the possible risks of discrimination from their AI programs. Beyond those more sweeping rules, many states have regulated parts of AI: barring the use of deepfakes in elections and to create nonconsensual porn, for example, or putting rules in place around the government's own use of AI. Those who support regulations that would prevent states from restricting AI -- including some GOP lawmakers and advocates like Sacks -- argue that forcing tech companies to contend with varied or even contradictory rules would hurt the industry. "At best, we'll end up with 50 different AI models for 50 different states - a regulatory morass worse than Europe," Sacks wrote on X earlier this week. "This will stymie innovation, especially by small startups who can't afford the compliance burden. Meanwhile, China will race ahead." But members of both parties have pushed back. Last month, when congressional Republicans weighed adding restrictions on state AI regulations to a defense bill, Florida Republican Gov. Ron DeSantis called the idea a "subsidy to Big Tech." "The rise of AI is the most significant economic and cultural shift occurring at the moment; denying the people the ability to channel these technologies in a productive way via self-government constitutes federal government overreach and lets technology companies run wild," the governor wrote. Earlier this week, Democratic Sen. Ed Markey of Massachusetts called Mr. Trump's plan to restrict AI regulations via an executive order an "early Christmas present for his CEO billionaire buddies."

[32]

NBC

Trump signs executive order seeking to ban states from regulating AI companies

President Donald Trump signaled Monday that he would signing an order this week targeting state AI laws.Andrew Caballero-Reynolds / AFP - Getty Images President Donald Trump signed an executive order Thursday evening that seeks to limit the ability of states to regulate artificial intelligence and prevent the enforcement of existing state laws. AI companies "want to be in the United States, and they want to do it here, and we have big investment coming. But if they had to get 50 different approvals from 50 different states, you could forget it," Trump said at a signing ceremony in the Oval Office, flanked by Sen. Ted Cruz, R-Texas, Commerce Secretary Howard Lutnick and other key White House officials. The order comes on the heels of a failed push to enact similar policy in Congress in late November, which followed a similar unsuccessful attempt in July. House Republicans recently tried to include a provision in the must-pass National Defense Authorization Act asserting that only the federal government could legislate AI; the effort faced backlash and the language was eventually removed. Given halting and slow-moving efforts to regulate AI at the federal level, critics of the executive order view it as an attempt to block all meaningful regulation on AI and put little faith in Congress to replace existing state laws with a nationwide standard. Brad Carson, director of the bipartisan AI advocacy group Americans for Responsible Innovation and a former member of Congress, called the order another attempt to push through unpopular and unwise policy. "Big Tech has failed twice to jam an AI amnesty into legislation," Carson told NBC News on Wednesday, predicting the executive order will soon be blocked in court. Trump indicated in a Truth Social post Monday that he would sign an AI order this week. "There must be only One Rulebook if we are going to continue to lead in AI," Trump wrote. "That won't last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS." Shortly after Trump's post, White House AI czar and Silicon Valley venture capitalist David Sacks elaborated on the rationale for the executive order in a post on X. Sacks argued that this domain of "interstate commerce" was "the type of economic activity that the Framers of the Constitution intended to reserve for the federal government to regulate." At the Oval Office signing ceremony, Sacks said, "We have 50 states running in 50 different directions. It just doesn't make sense." "We're creating a confusing patchwork of regulation, and what we need is a single federal standard, and that's what the EO says," he added. Mackenzie Arnold, director of U.S. policy at the Institute for Law and AI, said Wednesday that it's crucial to put arguments like Sacks' into context. "By that same logic, states wouldn't be allowed to pass product safety laws -- almost all of which affect companies out of state that sell their goods nationally. But those laws are the classic example of acceptable state legislation," he said. At the signing ceremony, supporters of the order also highlighted its importance for securing America's AI advantage over China. "It's a race, and if China wins the race, whoever wins, the values of that country will affect all of AI," Cruz said. "We don't want China's values of surveillance centralized control by the communist government governing AI." "We want American values of free speech, of individual liberty, of respecting the individual. So this executive order, I believe, is tremendously important," he added. Regulation surrounding AI is quickly emerging as a hot-button political topic. From concerns about pollution, soaring electricity prices and noise from data centers to the potential for AI chatbots to exacerbate teens' mental health struggles, many Americans -- on both sides of the aisle -- are beginning to call for effective AI laws. Many MAGA supporters view the current AI boom as a series of corporations run amuck, with a handful of powerful AI companies and CEOs acting as de-facto oligarchs. On Wednesday's broadcast of his War Room podcast, Steve Bannon said it "doesn't make sense" if "we're having a Sputnik moment and we can't have any controls over the frontier labs." "You have more regulations about launching a nail salon on Capitol Hill than you have on the frontier labs. We have no earthly idea what they're doing," Bannon said. Politicians on the other side of the political spectrum are equally skeptical. Sen. Ed Markey, D-Mass., said in a statement earlier this week that the executive order is "an early Christmas present for his CEO billionaire buddies." Markey called the order "irresponsible, shortsighted, and an assault on states' ability to safeguard their constituents."

[33]

France 24

Trump says to sign order blocking AI regulation by states

Washington (United States) (AFP) - President Donald Trump said Monday he will attempt to strip states of the right to regulate the surging AI industry, arguing centralized rulemaking is vital to maintain US dominance. "There must be only One Rulebook if we are going to continue to lead in AI," he posted on his Truth Social platform, announcing an executive order that would seek to prevent state-level regulation. Trump has made a major play to position the United States at the head of the global race to build and control AI tools predicted to transform everything from the way the economy works to military technology. However, the White House is running up against deep skepticism in Congress and within his own MAGA movement, where many voices are wary of the technology's potential economic and social harms. They point to polls that show increasing concern about AI, especially among young people who are nervous about getting or keeping a job. Figures within his own MAGA movement, such as strategy guru Steve Bannon, complain of Trump's closer ties to Big Tech that put the president out of touch with his political base. The announcement that he will sign an executive order centralizing AI regulation comes after Congress has twice refused to vote for allowing the overriding of state-level laws on AI. "We are beating ALL COUNTRIES at this point in the race, but that won't last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS," Trump wrote in his post. "THERE CAN BE NO DOUBT ABOUT THIS! AI WILL BE DESTROYED IN ITS INFANCY! I will be doing a ONE RULE Executive Order this week." The order is likely to stir more political opposition and legal challenges even if no details are yet known about what it would say. A draft order seen by The Hill last month would have created a task force dedicated to challenging state AI laws and restricted certain broadband funding for states with AI laws deemed overly burdensome. The idea to stop states going their own way has been advanced by Trump's AI and Crypto Czar David Sacks, a Silicon Valley insider, with the support of AI's biggest players, including OpenAI boss Sam Altman and Nvidia CEO Jensen Huang. "State by state AI regulation would drag this industry to a halt, and it would create a national security concern as we need to make sure that United States advances AI technology as quickly as possible," Huang told reporters during a visit to US Congress last week. Industry bosses complain that there are more than 1,000 AI-related bills currently moving through state legislatures. "How do you cope with those varied regulations (and)compete with countries like China, which are moving fast in this technology?" Google CEO Sundar Pichai told "Fox News Sunday."

[34]

The Guardian

Trump signs executive order blocking states from regulating AI

Order, which lacks the force of law, also creates taskforce whose 'sole responsibility' will be challenging states' AI laws Donald Trump signed an executive order on Thursday that seeks to halt any laws limiting artificial intelligence and block states from regulating the rapidly emerging technology. The order also creates a federal taskforce that will have the "sole responsibility" of challenging states' AI laws. At a signing ceremony, the president touted AI companies' enthusiasm for wanting to "invest" in the United States and said that "if they had to get 50 different approvals from 50 different states, you could forget it". Republicans earlier this year failed to pass a similar 10-year moratorium on state laws that regulate AI as part of Trump's One Big Beautiful Bill Act, with the Senate voting 99-1 to remove that ban from the legislation. Trump's order resurrects that effort, which failed after bipartisan pushback and Republican infighting, but as an order that lacks the force of law. The "Ensuring a national policy framework for artificial intelligence" order is a victory for Silicon Valley and AI companies that have lobbied against regulation of their technology, arguing that a hodgepodge of state laws would burden the industry with unnecessary bureaucracy. AI firms and the Trump administration have not presented any comprehensive proposals for regulating AI's social, environmental and political harms, however, leaving in place only federal regulation, lax in comparison with legislation some states have passed or considered. The order includes various mandates aimed at preventing the regulation of AI, including instructing the Department of Justice to create an "AI Litigation Task Force" whose sole responsibility is to challenge state laws. The order also demands a review of existing state laws that could "require AI models to alter their truthful outputs". Likely targets include California, which requires companies to disclose their safety testing for new AI models, and Colorado, which requires employers to conduct risk assessments for algorithmic discrimination in hiring and take precautions against it. Trump's order has received pushback from state leaders across the country and various civil liberties groups. They say this order will lead to more power in the hands of Silicon Valley companies and that, in turn, more vulnerable people and children will be exposed to the harms of chatbots, surveillance and algorithmic control. "Trump's campaign to threaten, harass and punish states that seek to pass commonsense AI regulations is just another chapter in his playbook to hand over control of one of the most transformative technologies of our time to big tech CEOs," said Teri Olle, the vice-president of Economic Security California Action, which co-sponsored AI safety legislation in California this year. "This is not about allowing for American innovation." Trump has framed the need for comprehensive AI regulation as both a necessity for the technology's development and as a means of preventing leftist ideology from infiltrating generative AI - a common conservative grievance among tech leaders such as Elon Musk. "You can't go through 50 states. You have to get one approval. Fifty is a disaster. You'll have one woke state and you'll have to do all woke," Trump said at the US-Saudi Investment Forum last month. "You'll have a couple of wokesters and you don't wanna do that. You wanna get the AI done." Earlier this week, he reiterated that sentiment in a post on Truth Social, saying: "We are beating ALL COUNTRIES at this point in the race, but that won't last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS. THERE CAN BE NO DOUBT ABOUT THIS! AI WILL BE DESTROYED IN ITS INFANCY!" The Trump administration has repeatedly vowed to make the US possess the most advanced artificial intelligence capabilities in the world, part of an intensifying AI arms race between the US and China. In doing so, the White House has largely ignored concerns from rights groups and researchers over the environmental costs of AI, alarm over the possibility of a financial bubble devastating the economy or AI's potential for damaging mental health or spreading misinformation. "The AI future is not going to be won by hand-wringing about safety," JD Vance said in a February speech at an AI summit. The Trump administration has fostered close ties with tech leaders and appointed industry figures to key roles within the government. The executive order gives an influential role to the special adviser for AI and crypto - a role occupied by billionaire venture capital investor and tech booster David Sacks - who is instructed to consult with the litigation taskforce when deciding which state laws to challenge. Sacha Haworth, executive director of the Tech Oversight Project, called the order "bad policy". "The Trump-Sacks executive order proves that the White House only listens to powerful big tech CEOs who fund ballrooms rather than the everyday people they pretend to serve," Haworth said. "The AI EO will go down as an unmitigated disaster that puts the Trump administration at odds with over two-thirds of Americans, and his AI-skeptic Maga base."

[35]

Trump signs executive order targeting state AI laws

Why it matters: The president and his AI czar David Sacks are moving aggressively in favor of industry to rein in state regulation of the technology. * MAGA populists made a last-minute bid to try to shape the executive order, pitching two draft proposals to the White House this week. * The White House also consulted Republican governors for the executive order, Axios first reported. What they're saying: "There's only going to be one winner here, and that's probably going to be the U.S. or China. And right now, we're winning by a lot," Trump said. * Trump suggested China does not have any regulatory hurdles, but said that "people want to be in the United States and they want to do it here, and we have the big investment coming but if they had to get 50 different approvals from 50 different states, you can forget it because that's not possible to do." * Trump added he thinks this effort has "great Republican support" and "probably" Democratic support, too. Catch up quick: The White House suffered a significant loss when Congress rejected including preemption language in the annual defense policy bill despite intense pressure from Trump, the White House and the tech industry. * It was the second major defeat this year in the administration's bid to reshape the AI policy landscape through Congress: senators stripped a similar provision from the budget bill in a 99-1 vote. * The White House first floated an executive order targeting state AI laws in November after Trump publicly backed a ban. What's next: Expect legal challenges from states -- and Republican infighting. This is breaking news. Check back for updates.

[36]

Mashable

Trump to ban states from restricting AI

President Donald Trump announced Monday that he plans to sign an executive order permitting only "one rule" for regulating artificial intelligence in the U.S. "There must be only One Rulebook if we are going to continue to lead in AI. We are beating ALL COUNTRIES at this point in the race, but that won't last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS," Trump wrote in a Truth Social post. Several states, including California and New York, have passed statewide legislation this year regulating various aspects of AI, including transparency, whistleblower protections, and user and teen safety. Trump did not elaborate on which states he considered bad actors in the regulatory process, or what qualified them as bad actors. A version of an executive order that leaked online last week reportedly directed federal agency and cabinet leaders to determine how to punish states with existing AI laws, according to The Verge. Earlier this year, Trump's One Big Beautiful Bill Act attempted to ban state regulation of AI for 10 years, a provision that Republican Congresswoman Marjorie Taylor Green notably rejected. The moratorium was very unpopular amongst registered voters, according to a poll conducted in mid-May. The measure was eventually voted down 99-1 by the Senate. Some MAGA supporters, including Trump ally Steve Bannon, continue to oppose industry-led regulation of AI. Still, proponents of a regulatory ban still want to provide AI companies carte blanche to innovate without having to address state-by-state regulations. David Sacks, a tech venture capitalist and the Trump administration's special advisor for AI and crypto, is reportedly behind the executive order, according to The Verge. It's not clear how Trump's executive order would affect Congressional legislation, like the bipartisan bill sponsored by Republican Sen. Josh Hawley and Democrat Sen. Mark Hawley that would require federal agencies and major U.S. companies to account for AI-related workforce reductions. A report released last week by the tech research nonprofit Future of Life Institute found that only three of eight major AI models got a passing grade on safety.

[37]

SiliconANGLE

Trump pushes back against states regulating AI with executive order - SiliconANGLE

Trump pushes back against states regulating AI with executive order President Donald Trump today signed an executive order that will limit the ability of states to regulate artificial intelligence while attempting to address state AI laws already in place. "To win, United States AI companies must be free to innovate without cumbersome regulation," the order says. "But excessive State regulation thwarts this imperative." In order to achieve AI superiority over China, the White House contends that one federal regulatory framework should replace individual state laws. In terms of compliance, what Trump (pictured) called "a patchwork of 50 different regulatory regimes" will make it difficult for startups. He also believes that giving states the power to regulate AI could create "ideological bias within models" that favor certain groups - what Trump has previously referred to as "woke AI". "My Administration must act with the Congress to ensure that there is a minimally burdensome national standard -- not 50 discordant State ones," the order said. "The resulting framework must forbid State laws that conflict with the policy set forth in this order. That framework should also ensure that children are protected, censorship is prevented, copyrights are respected, and communities are safeguarded." As the order was signed in the Oval Office, Trump was flanked by AI and crypto czar David Sacks and tech investor Chamath Palihapitiya, a former senior executive in the early days of Facebook Inc. They were joined by Republican Senator Ted Cruz and Commerce Secretary Howard Lutnick. "It's a race, and if China wins the race, whoever wins, the values of that country will affect all of AI," Cruz said. "We don't want China's values of surveillance and centralized control by the communist government governing AI. We want American values of free speech, of individual liberty, of respecting the individual. So this executive order, I believe, is tremendously important." Sacks explained that child safety regulations will remain in place, but the order will "push back" on what he called "the most onerous examples of state regulations." The move will be seen as a major win for leading AI firms and investors who have spent months lobbying against tighter regulation. Marc Andreessen, co-founder of the venture capital firm Andreessen Horowitz, has been outspoken against what he calls AI "doomers," arguing that the U.S. must shed regulatory restraints if it hopes to lead the global AI race. Under the order, Attorney General Pam Bondi is instructed to form an "AI Litigation Task Force" within 30 days, whose sole mandate is to contest state-level AI regulations that run counter to the Trump administration's policy framework. States that transgress could find themselves facing funding restrictions. The order will likely be challenged in court by states. According to the National Conference of State Legislatures, all 50 states and U.S. territories introduced AI legislation this year, and 38 states enacted around 100 new laws. "President Trump and Davis Sacks aren't making policy - they're running a con," California Governor Gavin Newsom, a proponent of regulation, said. "And every day, they push the limits to see how far they can take it. California is working on behalf of Americans by building the strongest innovation economy in the nation while implementing commonsense safeguards and leading the way forward."

[38]

AIM

Trump Cracks Down on State AI Regulations, Launches National Policy Push | AIM

The order, titled Ensuring a National Policy Framework for Artificial Intelligence, represents the administration's most decisive move yet. United States President Donald Trump, on December 11, signed an executive order aimed at curbing state-level AI regulations and accelerating the creation of a unified federal framework. The order, titled Ensuring a National Policy Framework for Artificial Intelligence, represents the administration's most decisive move yet to preempt what it calls a "patchwork" of state rules that threaten US dominance in AI development. In the order, Trump argues that the US is "in a race with adversaries for supremacy" in AI and that companies must be able to innovate "without cumbersome regulation". He directly criticises emerging state laws that seek to govern algorithmic discrimination, transparency or model outputs. Citing Colorado's recently enacted rules, the president claims such laws "may even force AI models to produce false results in order to avoid a 'differential treatment or impact' on protected groups". The executive order establishes a new AI Litigation Task Force inside the justice department, directing it to challenge state laws the administration views as unconstitutional or obstructive. It also instructs the commerce department to publish, within 90 days, an evaluation identifying state AI laws that are "onerous" or inconsistent with federal policy. Trump's directive further calls on the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) to explore federal reporting and disclosure standards that could explicitly preempt conflicting state requirements. "It is the policy of the United States to sustain and enhance the United States' global AI dominance through a minimally burdensome national policy framework," the order states. The administration will also send Congress a legislative proposal establishing a federal artificial intelligence framework that overrides state regulations, except in areas like child safety and government procurement. "We remain in the earliest days of this technological revolution," Trump wrote, adding, "It is imperative that we act now to ensure that America wins the AI race." The order comes amid escalating friction between state governments and Washington over how AI should be governed. In recent months, scrutiny from the states has intensified as 42 attorneys general, including those from Colorado, Florida, Massachusetts, Texas, Virginia, Washington and Illinois, warned that generative AI systems may already be violating consumer-protection and child-safety laws. The bipartisan group has also demanded independent audits from Microsoft, Google, Meta and Apple, arguing that developers have not done enough to curb harmful or misleading outputs. State legislatures have also moved aggressively to craft their own rules, creating the patchwork the White House says it is now trying to dismantle. California passed its Transparency in Frontier Artificial Intelligence Act, which requires developers of large-scale AI systems to publish risk assessments and safety documentation. Texas adopted a different approach, enacting criminal penalties for the possession or promotion of AI-generated obscene material involving minors.

[39]

Fast Company

Trump vows to block state AI regulations, calling them a threat to innovation

President Donald Trump just announced that he plans to issue an executive order this week to set federal rules around artificial intelligence -- and prevent states from setting their own. "I will be doing a ONE RULE Executive Order this week. You can't expect a company to get 50 Approvals every time they want to do something," Trump wrote in a Truth Social post on Monday. "We are beating ALL COUNTRIES at this point in the race, but that won't last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS." The executive order is just the latest dramatic act of deregulation from Trump, who, since taking office, has slashed rules from banking regulations to environmental protections. Under Trump's plan, the federal government's framework on AI would override any rules that individual states might put in place to shape the technology's use or development. Trump's AI executive order isn't out yet, but a draft version that circulated last month proposed an aggressive framework that would go as far as creating a federal legal task force designed to punish states with AI regulations. Under the order, which would likely attract its own legal challenges, states with AI laws could be denied federal funds.

[40]

Washington Post

Trump defies GOP critics by signing controversial order threatening states over AI laws

President Donald Trump displays a freshly signed executive order on artificial intelligence as, from left, senior White House artificial intelligence policy adviser Sriram Krishnan, Sen. Ted Cruz (R-Texas), Commerce Secretary Howard Lutnick and White House AI and crypto czar David Sacks join him in the Oval Office. (Alex Wong/Getty Images) SAN FRANCISCO -- President Donald Trump signed an executive order Thursday directing the federal government to file lawsuits against states that introduce regulations on artificial intelligence technology deemed to undermine the "global AI dominance" of the United States, doubling down on the White House's industry-friendly approach to tech policy, despite growing pushback from politicians on both sides of the aisle.

[41]

Dataconomy

Trump signs executive order limiting state AI laws

President Donald Trump signed an executive order in the White House to consolidate federal control over artificial intelligence regulation, directing agencies to limit state laws' influence through challenges and funding risks, with AI and crypto czar David Sacks present. The executive order addresses the growing patchwork of state-level AI regulations by instructing federal agencies to take actions that reduce or eliminate the impact of these laws. It aims to prevent states from enacting measures that the federal government could contest in court or that might lead to the withholding of essential funding for various programs. This approach seeks to establish a unified national framework for AI oversight, prioritizing federal authority in an area seen as critical to national interests. A key target of the order is Colorado's recently enacted consumer protection law, which addresses algorithmic discrimination. The order argues that such prohibitions could compel AI models to generate inaccurate outputs to prevent any disparate treatment or impact on protected groups. It states verbatim, "banning algorithmic discrimination may even force AI models to produce false results in order to avoid a differential treatment or impact on protected groups." This provision highlights concerns over how state mandates might interfere with the operational integrity of AI systems. The signed document remains largely identical to the draft version reported the previous month, maintaining its core directives without significant alterations. Among these is the establishment of an "AI Litigation Task Force," to be led by the attorney general. This task force will pursue legal action against states whose AI laws conflict with the objective of sustaining and enhancing the United States' global AI dominance via a minimally burdensome national policy framework for AI. The Federal Trade Commission receives specific instructions to release a policy statement. This statement will outline the circumstances under which state laws mandating changes to the truthful outputs of AI models are preempted by the Federal Trade Commission Act's prohibition on engaging in deceptive acts or practices affecting commerce. The directive quotes, "circumstances under which State laws that require alterations to the truthful outputs of AI models are preempted by the Federal Trade Commission Act's prohibition on engaging in deceptive acts or practices affecting commerce." Additionally, Commerce Secretary Howard Lutnick must produce a report within 90 days. The report will identify states with laws conflicting with the executive order and assess which of these states may lose eligibility for rural broadband funding under the Broadband Equity Access and Deployment program. This measure ties AI regulatory compliance to broader infrastructure support, potentially influencing state policy decisions.

[42]

Seattle Times

Trump signs executive order to block state AI regulations

President Donald Trump signed an executive order Thursday aimed at blocking states from crafting their own regulations for artificial intelligence, saying the burgeoning industry is at risk of being stifled by a patchwork of onerous rules while in a battle with Chinese competitors for supremacy. Members of Congress from both parties, as well as civil liberties and consumer rights groups, have pushed for more regulations on AI, saying there is not enough oversight for the powerful technology. But Trump told reporters in the Oval Office that "there's only going to be one winner" as nations race to dominate artificial intelligence, and China's central government gives its companies a single place to go for government approvals. "We have the big investment coming, but if they had to get 50 different approvals from 50 different states, you can forget it because it's impossible to do," Trump said. The executive order directs the Attorney General to create a new task force to challenge state laws, and directs the Commerce Department to draw up a list of problematic regulations. It also threatens to restrict funding from a broadband deployment program and other grant programs to states with AI laws. David Sacks, a venture capitalist with extensive AI investments who is leading Trump's policies on cryptocurrency and artificial intelligence, said the Trump administration would only push back on "the most onerous examples of state regulation" but would not oppose "kid safety" measures. What states have proposed Four states -- Colorado, California, Utah and Texas -- have passed laws that set some rules for AI across the private sector, according to the International Association of Privacy Professionals. Those laws include limiting the collection of certain personal information and requiring more transparency from companies. The laws are in response to AI that already pervades everyday life. The technology helps make consequential decisions for Americans, including who gets a job interview, an apartment lease, a home loan and even certain medical care. But research has shown that it can make mistakes in those decisions, including by prioritizing a particular gender or race. States' more ambitious AI regulation proposals require private companies to provide transparency and assess the possible risks of discrimination from their AI programs. Beyond those more sweeping rules, many states have regulated parts of AI: barring the use of deepfakes in elections and to create nonconsensual porn, for example, or putting rules in place around the government's own use of AI.

[43]

CBS

President Trump says he will sign AI executive order, sparking fears it would upend Minnesota's regulations

Caroline Cummings is an Emmy-winning reporter with a passion for covering politics, public policy and government. She is thrilled to join the WCCO team. President Trump said he would soon provide "one rulebook" for regulations, sparking some concern a move by the White House would upend individual states' efforts at putting safeguards around the technology. In a social media post Monday, the president said the U.S. is "beating all countries" when it comes to developing AI, "but that won't last long if we are going to have 50 States, many of them bad actors, involved in rules and approval process." He vowed to sign an executive order later this week. "I will be doing a One Rule Executive Order this week," Mr. Trump wrote. "You can't expect a company to get 50 approvals every time they want to do something. That will never work!" Though the details of any forthcoming directive aren't fully clear, U.S. Sen. Amy Klobuchar, the senior Democrat from Minnesota, said she is concerned that it might upend existing state laws on AI since Congress hasn't taken significant steps on its own, except for a bill targeting "revenge porn" generated by the technology that she backed in the Senate. The New York Times reported that a draft version of the executive order circulated last month, including provisions directing the U.S. Attorney General to sue states with their own laws and also for agencies to withhold broadband grants to those states. "If you have a federal law, which we must do, then you can maybe say to the states, 'Hey, this, this governs instead.'" Klobuchar said in an interview. "But when you have nothing because the companies have lobbied against any rules at all to protect the safety of people and their kids -- the last thing you should do is then say 'We're going to get rid of all the state's work on this.'" She said AI can be a tool that can yield great possibilities, but the country needs "some rules of the road to protect people because right now, people are just seeing the dark side." Minnesota is among the states with its own laws on the books, with more proposals under discussion in recent years. In 2023, the Legislature approved a bill to regulate the misuse of "deepfakes," or manipulated images, video and audio, designed to hurt a political candidate or influence an election. That same law also made it a crime to send out nonconsensual sexual images generated by AI, similar to the "Take It Down" Act that Congress approved. GOP State Sen. Eric Lucero, who spent 20 years in cybersecurity and has worked on AI issues at the state capitol, said he understands the national security interests of being the world leader on the tech, calling it the new "space race." But there should be a balance between that and allowing states to take their own action, he added. "Congress should have answered this question years ago," Lucero said. "Because they have not, that's why there have been bipartisan efforts at the state level to protect individuals' data. And in the absence of that, we will continue to press forward, working to protect individuals against the advancement of technology, answering that question for ourselves that individuals own their data." He "sincerely hopes" that the states are given the latitude to continue their work in Mr. Trump's order to protect against "abuse" of artificial intelligence. Going forward, Lucero explained he wants to work on putting guardrails around facial recognition technology and other biometrics. State Sen. Erin Maye Quade, a Democrat, has pushed for a bill to ban "nudify" apps that generate fake -- but very realistic -- nude images of people simply by taking their photo. An employee of a Twin Cities school district faced federal charges in February, accused of using that very technology to create sexualized images of children under his care. "Companies' haphazard, 'wild west' rollout of this technology shows that they do not care about the harm AI creates when misused. Advocates and elected officials across the political spectrum have sounded the alarm and introduced bipartisan legislation in state houses across the country designed to protect our constituents and harness AI's potential when used to help, not harm," Maye Quade said in a statement. "In the absence of federal action to protect all Americans, states have the right to legislate and regulate to protect our residents." She urged Congress to pass comprehensive regulations. Every state introduced some AI regulation bill in its legislature this year, according to the National Conference of State Legislatures. Thirty-eight states adopted 100 proposals.

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MAGA scrambles to influence Trump's AI executive order

Why it matters: Republicans are split on regulating AI, but with President Trump pursuing aggressive action to boost the industry some conservatives are desperately trying to intervene. * Some MAGA conservatives and Republican governors view the White House's draft executive order as too broad and a giveaway to AI companies at the expense of states' rights. * They're also warning that the president's political future is at risk if he doesn't get AI regulation right. Behind the scenes: Three sources familiar with the matter described the effort as a "family intervention" where conservatives are trying to tamp down the language in the White House's previously leaked draft executive order. * The White House reached out to several Republican governors and asked for feedback for an AI executive order that the president could sign, sources said. They did not disclose which specific governors were consulted. Florida Gov. Ron DeSantis, Arkansas Gov. Sarah Huckabee Sanders and Utah Gov. Spencer Cox have previously spoken out against the preemption efforts, saying that states need to have a say in protecting kids and jobs. * "Governor Sanders supports President Trump's leadership to unleash American AI dominance and looks forward to working with his administration and other stakeholders to make sure we win the race against China and also protect Americans," spokesperson Sam Dubke told Axios in a statement. * DeSantis' office did not respond to a request for comment. State of play: Trump said on Monday that he would sign an AI executive order before the end of this week. * "If Republicans throw us under the bus and basically hand our future over to the Jensen Huangs and the Elon Musks and the Sam Altmans of the world, they're gonna get wrecked," Joe Allen, Steve Bannon's AI expert on his "War Room" podcast, said on Wednesday. * Earlier in the day, Allen praised two alternative executive orders that he said were circulating in the administration. * The White House told Axios that any discussion of executive orders was speculation. What's inside: The alternate proposals were written with some input from AI and family issues groups on the right, sources told Axios. * One alternative executive order draft would make "human flourishing" -- "defined as the enhancement of American national security, middle class economic prosperity, family health, and human well-being" -- the "primary objective of national AI policy." * It would create a Federal-State AI Working Group, to be co-chaired by the Office of Science and Technology Policy, the National Governors Association and other state and local groups. * Another executive order proposal would seek to eliminate "woke state AI laws" by opposing state laws that allegedly discriminate on the basis of race, sex, or other protected characteristics. What they're saying: The Heritage Foundation's Wes Hodges called the "human flourishing" proposal "a legitimate effort" that appropriately involves an interagency process and described the "woke" proposal as appropriately targeted. * "The idea that you need to strike all state AI laws just because there are a few bad apples is extreme," Hodges said. The bottom line: Preemption without a federal standard is a political loser.

[45]

U.S. News

Trump's AI Order Faces Political and Legal Hurdles

Dec 12 (Reuters) - U.S. President Donald Trump's executive order seeking to bar state laws on artificial intelligence that he says slow innovation will face political and legal opposition from states seeking to preserve their right to regulate the rapidly growing technology. The order instructing federal agencies to sue and withhold funds from states whose AI laws the administration deems problematic is a win for tech companies, who argue a patchwork of state laws hinders U.S. competition with China on AI. But the Trump administration will face legal obstacles in implementing it, ⁠experts said, and potential opposition from Republican states. "There is not a lot of legal authority that the administration can rely on to enforce a significant portion of the order," said Joel Thayer, head of the Digital Progress Institute. FIGHTS OVER INTERNET ACCESS FUNDING One of the order's major enforcement mechanisms directs the Commerce Department to block states with onerous AI regulations from the $42 billion Broadband Equity, Access, and Deployment program (BEAD). The order might be opposed by some of the president's staunchest rural supporters. BEAD funding is vital for increasing Internet access in rural areas, a key voting ⁠group for Trump. He won voters living in rural areas by 40 points (69%-29%) in 2024, which was higher than his margins in 2020 or 2016. Dean Ball, a former White House official who contributed to the AI Action Plan the administration issued in the summer, said the attempt to tie the funding to AI laws faces uncertainty. Courts would consider how related the AI laws are to the purpose of the broadband statute, and the fact that many states have already received funding pre-approval. Whether Congress intended to give the administration authority over state AI regulation when it authorized broadband funding will also be a significant legal question, he said. "I think the administration has a 30 to 35% chance of this working legally," said Ball. Some Republican governors, including Arkansas Governor Sarah Huckabee Sanders, have previously spoken against the federal government blocking their states' laws. Florida Governor Ron DeSantis, a Republican, last month called a then-pending bid by Congress to block states from regulating AI a "subsidy to Big Tech." DeSantis has proposed an AI bill of rights that includes data privacy, parental controls and consumer protections. CHALLENGE OVER INTERSTATE COMMERCE The order also tasks the Department of Justice with challenging state laws because they violate the Constitution by meddling in interstate commerce. Venture capital firm Andreessen Horowitz has supported that argument, saying the Supreme Court has held that the Constitution implicitly limits state lawmaking authority. But courts have rejected previous attempts to block state privacy legislation by invoking that part of the Constitution known as the "dormant commerce clause," said Slade Bond, a former DOJ official who works with Americans for Responsible Innovation, a group that has opposed blocking state AI laws. "The lodestone of the constitutional analysis is really about, are you treating out-of-state businesses differently than in-state businesses?" Bond said. (Reporting by Jody Godoy in New York, additional reporting by Karen Freifeld and Courtney Rozen in WashingtonEditing by Rod Nickel)

[46]

The Hill

Trump signs order blocking state AI laws

President Trump signed Thursday night an executive order to impose a national AI standard, a move that would seemingly limit states' efforts to enact their own AI laws. "We have to be unified. China is unified because they have one vote and that's President Xi [Xinping]," Trump said, speaking in the Oval Office. "We have a different system, but we have a system that's good. But we only have a system that's good if it's smart." White House AI and crypto czar David Sacks, who joined the president in the Oval alongside Commerce Secretary Howard Lutnick and Sen. Ted Cruz (R-Texas), said the order would give the administration "tools to push back on the most onerous and excessive state regulations." However, Sacks suggested they would not fight all state AI laws, pointing to kids' safety measures as an example. Trump hinted at the order Monday, arguing in a Truth Social post that there should be "only One Rulebook if we are going to continue to lead in AI." The president initially appeared to be considering an order last month, as House Republican leaders faced pushback amid a renewed effort to pass a measure preempting state AI laws. A draft order seen by The Hill would have created a task force dedicated to fighting state AI measures in court and restricted federal broadband funding for states whose AI laws are deemed overly burdensome. GOP leaders reportedly urged the president to hold off, as they sought to include a preemption provision in the National Defense Authorization Act (NDAA). However, the issue faced resistance from several Republicans, including Rep. Marjorie Taylor Greene (Ga.), Sen. Josh Hawley (Mo.) and Florida Gov. Ron DeSantis. It was ultimately not included in the final legislation, with House Majority Leader Steve Scalise (R-La.) saying last week that they were "looking at other places" for the measure. This is the second time that Republicans lawmakers have attempted to include such a provision in key legislation. A 10-year moratorium on state AI laws was included in Trump's tax and spending bill earlier this year but was ultimately stripped out by the Senate. The Trump White House and its Silicon Valley allies have argued that preemption is necessary to prevent a patchwork of state AI laws that could disrupt innovation amid fierce competition with China. However, state lawmakers contend that they are better positioned to regulate the rapidly evolving technology, especially given Congress's previous struggles to pass legislation on social media and privacy. Updated at 7:05 p.m. EST

[47]

Inc.

Trump's Idea to Use an Executive Order on State AI Regulations Has 1 Key Problem

The president on Monday posted on Truth Social, the social media platform he owns, that he would "be doing a one rule executive order this week" addressing AI governance. How to regulate AI is something that Congress has discussed for years, convening multiple times with little result. A measure to block states from inking their own AI laws failed to make it into the so-called One Big Beautiful Bill, as did a similar provision thrown into the $900 billion annual defense spending package, which lawmakers are currently deliberating. But Trump argued that there should only be "one rulebook" if the U.S. wants to lead in the AI race. "We are beating ALL COUNTRIES at this point in the race, but that won't last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS," Trump wrote.

[48]

USA Today

Trump is signing an order on federal AI rules. Here's why.

Grok AI is being used to create porn-like deepfakes of women, including feminist X user Evie. President Donald Trump will sign an executive order this week establishing a federal framework around artificial intelligence, a move aimed at pre-empting states from imposing their own laws on the mega-popular technology. "There must be only One Rulebook if we are going to continue to lead in AI," Trump wrote on Truth Social on Dec. 8. "We are beating ALL COUNTRIES at this point in the race, but that won't last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS." However, this isn't the first time Trump has expressed an interest in creating a federal rulebook. "We MUST have one Federal Standard instead of a patchwork of 50 State Regulatory Regimes," he wrote on Truth Social Nov. 18. Artificial intelligence covers a massive amount of technology, from taking on tasks that used to require a human's touch to creating the latest viral trends and more. Lawmakers, activists and others have repeatedly sounded alarms over deepfakes and many other AI applications. All 50 states, Puerto Rico, the Virgin Islands, and Washington, DC, have introduced a variety of AI-focused legislation this year. At least 38 states have also adopted around 100 AI measures in 2025, according to the National Conference of State Legislatures. It's also not clear how many lawmakers will support the president's latest push. When Trump signed his tax and spending bill into law on July 4, a previously proposed 10-year federal ban on state and local artificial intelligence had already been stripped from it. Just days before, the Senate voted 99-1 in favor of an amendment co-sponsored by Sen. Maria Cantwell, D-Washington, and Sen. Marsha Blackburn, R-Tennessee, to remove a ten-year moratorium on state AI regulations from the Republican-backed legislation, which GOP leaders dubbed the "big, beautiful" bill. Cantwell argued at the time that the Senate "can't just run over good state consumer protection laws." "States can fight robocalls, deepfakes and provide safe autonomous vehicle laws," she said in July. "This also allows us to work together nationally to provide a new federal framework on Artificial Intelligence that accelerates U.S. leadership in AI while still protecting consumers." South Carolina State Rep. Brandon Guffey told nonprofit consumer advocacy organization Public Citizen that it makes "zero sense" to remove the state's ability to protect citizens. The group has long monitored federal and private sector efforts to ditch state-level AI regulations. "Two years ago, no one would have thought an AI chatbot would coach kids to take their lives. We sit here today with that knowledge yet those that took an oath to defend us, are considering a moratorium on any AI regulations, regardless of harm," said Guffey, who serves on the South Carolina House of Representatives Committee on AI, according to a Public Citizen news release. "This is done in the interest of the world's richest companies and at the expense of our children." Still, Trump argued in his Dec. 8 post that letting each state come up with its own regulations would be detrimental to the development of AI technology. "AI would be AI WILL BE DESTROYED IN ITS INFANCY!," he wrote. in his Truth Social post. " You can't expect a company to get 50 Approvals every time they want to do something. THAT WILL NEVER WORK!"

[49]

Trump's order targeting state AI laws faces political and legal hurdles

President Trump's order to challenge state AI laws faces significant opposition. States aim to protect their regulatory rights. The administration's move to block federal funding for states with AI laws is also contested. Legal experts express doubts about the order's enforceability. Republican governors are also voicing concerns about federal overreach. U.S. President Donald Trump's executive order seeking to bar state laws on artificial intelligence that he says slow innovation will face political and legal opposition from states seeking to preserve their right to regulate the rapidly growing technology. The order instructing federal agencies to sue and withhold funds from states whose AI laws the administration deems problematic is a win for tech companies, who argue a patchwork of state laws hinders U.S. competition with China on AI. But the Trump administration will face legal obstacles in implementing it, experts said, and potential opposition from Republican states. "There is not a lot of legal authority that the administration can rely on to enforce a significant portion of the order," said Joel Thayer, head of the Digital Progress Institute. FIGHTS OVER INTERNET ACCESS FUNDING One of the order's major enforcement mechanisms directs the Commerce Department to block states with onerous AI regulations from the $42 billion Broadband Equity, Access, and Deployment program (BEAD). The order might be opposed by some of the president's staunchest rural supporters. BEAD funding is vital for increasing Internet access in rural areas, a key voting group for Trump. He won voters living in rural areas by 40 percentage points (69%-29%) in 2024, which was higher than his margins in 2020 or 2016. Dean Ball, a former White House official who contributed to the AI Action Plan the administration issued in the summer, said the attempt to tie the funding to AI laws faces uncertainty. Courts would consider how related the AI laws are to the purpose of the broadband statute, and the fact that many states have already received funding pre-approval. Whether Congress intended to give the administration authority over state AI regulation when it authorized broadband funding will also be a significant legal question, he said. "I think the administration has a 30 to 35% chance of this working legally," said Ball. Some Republican governors, including Arkansas Governor Sarah Huckabee Sanders, have previously spoken against the federal government blocking their states' laws. Florida Governor Ron DeSantis, a Republican, last month called a then-pending bid by Congress to block states from regulating AI a "subsidy to Big Tech." DeSantis has proposed an AI bill of rights that includes data privacy, parental controls and consumer protections. CHALLENGE OVER INTERSTATE COMMERCE The order also tasks the Department of Justice with challenging state laws because they violate the Constitution by meddling in interstate commerce. Venture capital firm Andreessen Horowitz has supported that argument, saying the Supreme Court has held that the Constitution implicitly limits state lawmaking authority. But courts have rejected previous attempts to block state privacy legislation by invoking that part of the Constitution known as the "dormant commerce clause," said Slade Bond, a former DOJ official who works with Americans for Responsible Innovation, a group that has opposed blocking state AI laws. "The lodestone of the constitutional analysis is really about, are you treating out-of-state businesses differently than in-state businesses?" Bond said. (You can now subscribe to our Economic Times WhatsApp channel)

[50]

U.S. News

Trump Signs Executive Order to Block State AI Regulations

President Donald Trump signed an executive order Thursday aimed at blocking states from crafting their own regulations for artificial intelligence, saying the burgeoning industry is at risk of being stifled by a patchwork of onerous rules while in a battle with Chinese competitors for supremacy. Members of Congress from both parties, as well as civil liberties and consumer rights groups, have pushed for more regulations on AI, saying there is not enough oversight for the powerful technology. But Trump told reporters in the Oval Office that "there's only going to be one winner" as nations race to dominate artificial intelligence, and China's central government gives its companies a single place to go for government approvals. "We have the big investment coming, but if they had to get 50 different approvals from 50 different states, you can forget it because it's impossible to do," Trump said. The executive order directs the Attorney General to create a new task force to challenge state laws, and directs the Commerce Department to draw up a list of problematic regulations. It also threatens to restrict funding from a broadband deployment program and other grant programs to states with AI laws. David Sacks, a venture capitalist with extensive AI investments who is leading Trump's policies on cryptocurrency and artificial intelligence, said the Trump administration would only push back on "the most onerous examples of state regulation" but would not oppose "kid safety" measures. What states have proposed Four states -- Colorado, California, Utah and Texas -- have passed laws that set some rules for AI across the private sector, according to the International Association of Privacy Professionals. Those laws include limiting the collection of certain personal information and requiring more transparency from companies. The laws are in response to AI that already pervades everyday life. The technology helps make consequential decisions for Americans, including who gets a job interview, an apartment lease, a home loan and even certain medical care. But research has shown that it can make mistakes in those decisions, including by prioritizing a particular gender or race. States' more ambitious AI regulation proposals require private companies to provide transparency and assess the possible risks of discrimination from their AI programs. Beyond those more sweeping rules, many states have regulated parts of AI: barring the use of deepfakes in elections and to create nonconsensual porn, for example, or putting rules in place around the government's own use of AI.

[51]

Trump says "One Rulebook" for AI law is coming. Here's when

Why it matters: It's another sign that Trump wants to promote AI with as little regulation as possible -- an approach that could set up a clash with his own MAGA supporters. What he's saying: "There must be only One Rulebook if we are going to continue to lead in AI," Trump wrote in a Truth Social post. * "We are beating ALL COUNTRIES at this point in the race, but that won't last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS ... AI WILL BE DESTROYED IN ITS INFANCY!" * "You can't expect a company to get 50 Approvals every time they want to do something. THAT WILL NEVER WORK!" What we're watching: The executive order isn't likely to try to block state AI laws outright. Instead, it's expected to attempt to gut state AI laws by launching legal challenges and conditioning federal grants on compliance. * This approach has far less teeth than legislation -- and will certainly face legal challenges. Catch up quick: One version of the executive order that would have made internet grants and other federal funds conditional on limiting AI regulation was put on hold but is back in play, sources tell Axios' Ashley Gold and Maria Curi.

[52]

Trump's AI Order Under Fire -- Amy Klobuchar Says It's 'Likely Illegal' While Bernie Sanders Calls It 'Extremely Dangerous' - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

President Donald Trump's sweeping executive order aimed at curbing state-level artificial intelligence (AI) regulation is triggering fierce political backlash, legal questions, and sharply divided reactions across Washington, labor groups, and Silicon Valley. Trump Pushes Single National AI Framework Trump on Thursday signed an executive order seeking to establish a unified national approach to AI regulation, arguing that state laws have created a fragmented system that threatens U.S. leadership in AI. The order directs the Justice Department to form an AI Litigation Task Force charged with challenging state AI laws deemed inconsistent with federal policy. Trump criticized what he called a "patchwork of 50 different regulatory regimes," saying such rules slow innovation and undermine competitiveness. The task force could sue states if their AI laws are found to unlawfully regulate interstate commerce, conflict with federal authority, or otherwise violate the Constitution. Trump said a national standard is needed to ensure "the United States wins the AI race." See Also: Nvidia Stock Dips After Oracle Snub: Larry Ellison Calls It 'Chip Neutrality' White House Defends Move, Targets 'Doomer' Laws White House AI adviser Sriram Krishnan, speaking on CNBC's Squawk Box, said the administration plans to work with Congress on federal AI legislation while pushing back on overly restrictive state laws. "The White House is now taking a firm stance," Krishnan said, describing some state policies as "doomer" regulations that hurt U.S. competitiveness. He added the order would focus on laws passed in states such as California and Colorado, while stressing that rules protecting children's safety would not be targeted. Democrats And Labor Groups Sound Alarm Democratic lawmakers quickly condemned the move. Sen. Amy Klobuchar (D-Minn.) called the order "the wrong approach -- and most likely illegal," arguing that it strips away some of the few existing protections Americans have against AI harms. Sen. Scott Wiener (D-Calif.) said Trump was declaring "war" on state AI transparency laws under the banner of U.S. dominance, while pointing to the latest decision of approving Nvidia Corp (NASDAQ:NVDA) chip sales abroad as contradictory. Sen. Bernie Sanders (I-Vt.) called the order "unconstitutional" and "extremely dangerous," warning that unchecked AI threatens privacy, jobs, and democracy. "We cannot let a handful of oligarchs decide the future of humanity," he said. The American Federation of Labor and Congress of Industrial Organizations, or AFL-CIO, also echoed those concerns, accusing Trump of empowering tech billionaires at the expense of workers' rights and vowing to support state legal challenges. Wall Street Applauds Trump's AI Order Wedbush analyst Dan Ives called the order a major win for U.S. tech firms, saying limits on state regulation remove "significant innovation hurdles." The move is widely seen as benefiting companies such as OpenAI, Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Meta Platforms, Inc. (NASDAQ:META), Microsoft Corp (NASDAQ:MSFT), and Nvidia, which have increased lobbying efforts to curb state-by-state AI rules. Benzinga's Edge Stock Rankings rank the company in the 97th percentile for Growth and the 92nd percentile for Quality, highlighting its strong competitive position. Read Next: Nvidia Eyes Bigger AI Chip Output After China Orders Flood In Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock GOOGAlphabet Inc$309.60-0.30%OverviewGOOGLAlphabet Inc$308.79-0.16%METAMeta Platforms Inc$643.18-0.16%MSFTMicrosoft Corp$477.17-0.28%NVDANVIDIA Corp$175.170.09%Market News and Data brought to you by Benzinga APIs

[53]

PYMNTS

President Trump's Ban on State AI Rules Faces Legal Pushback | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. "For banks, payments firms and FinTechs leaning on AI for fraud detection, credit decisioning and customer-facing chatbots, the message is straightforward: the White House is seeking one federal playbook, not a patchwork of state requirements," PYMNTS wrote. But making that order a reality could face legal and political opposition from states who want some say in how artificial intelligence (AI) is governed, Reuters reported Friday (Dec. 12). The report noted that Trump's order, which instructs federal agencies to sue and withhold funding from states whose AI laws the White House finds problematic, is a victory for tech companies. Those firms had argued that a hodgepodge of state AI regulations hurts the U.S. as it competes with China. However, experts tell Reuters that the administration will face legal roadblocks in carrying out the order, and could see opposition from Republican-led states. "There is not a lot of legal authority that the administration can rely on to enforce a significant portion of the order," said Joel Thayer, head of the Digital Progress Institute. One of the order's major enforcement mechanisms calls on the Commerce Department to keep states with onerous AI regulations from accessing the $42 billion Broadband Equity, Access, and Deployment program (BEAD). That program, Reuters said, is crucial for increasing internet access in rural areas, a key voting bloc for Trump, who won voters living in rural areas by 40 points last year. Dean Ball, a former White House official who contributed to the AI Action Plan the administration published in the summer, said the effort to tie the funding to AI laws faces uncertainty. "I think the administration has a 30 to 35% chance of this working legally," Ball said. As PYMNTS wrote last week, there is a growing divide on AI regulation and development between the federal government and the states. State lawmakers have put forth hundreds of bills addressing a wide range of AI-related issues. And earlier this month, Florida Gov. Ron DeSantis (R), a potential 2028 presidential candidate, announced a package of legislative proposals designed to protect Floridians' personal data from misuse by AI systems and restrict development of data centers.

[54]

What to know about Trump's executive order to curtail state AI regulations

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 no oversight and that Trump's effort oversteps the limits of presidential power. President Donald Trump signed an executive order Thursday pressuring states not to regulate artificial intelligence, even as some in Congress also consider whether to temporarily block states from regulating AI. 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 no oversight and that Trump's effort oversteps the limits of presidential power. Here's what to know about states' AI regulations and what Trump signed.What state-level regulations exist and why Four states - Colorado, California, Utah and Texas - have passed laws that set some rules for AI across the private sector, according to the International Association of Privacy Professionals. Those laws include limiting the collection of certain personal information and requiring more transparency from companies. The laws are in response to AI that already pervades everyday life. The technology helps make consequential decisions for Americans, including who gets a job interview, an apartment lease, a home loan and even certain medical care. But research has shown that it can make mistakes in those decisions, including by prioritizing a particular gender or race. "It's not a matter of AI makes mistakes and humans never do," said Calli Schroeder, director of the AI & Human Rights Program at the public interest group EPIC. "With a human, I can say, 'Hey, explain, how did you come to that conclusion, what factors did you consider?'" she continued. "With an AI, I can't ask any of that, and I can't find that out. And frankly, half the time the programmers of the AI couldn't answer that question." States' more ambitious AI regulation proposals require private companies to provide transparency and assess the possible risks of discrimination from their AI programs. Beyond those more sweeping rules, many states have regulated parts of AI: barring the use of deepfakes in elections and to create nonconsensual porn, for example, or putting rules in place around the government's own use of AI.What the executive order seeks to do The executive order directs federal agencies to identify burdensome state AI regulations and pressure states not to enact them, including by withholding federal funding, including for broadband, or challenging the state laws in court. It would also begin a process to develop a lighter-touch regulatory framework for the whole country that would override state AI laws. It does not seek to preempt some laws states have adopted, such as AI-related child safety protections and provisions on how state governments can procure and use AI. Trump argues that the patchwork of regulations across 50 states impedes AI companies' growth and allows China to catch up to the US in the AI race. The president has also said state regulations are producing "Woke AI." Separately, House Republican leadership is discussing a proposal to temporarily block states from regulating AI, the chamber's majority leader, Steve Scalise, told Punchbowl News last month. It remains unclear what that proposal would look like, or which AI regulations it would override. TechNet, which advocates for tech companies including Google and Amazon, has previously argued that pausing state regulations would benefit smaller AI companies still getting on their feet and allow time for lawmakers develop a country-wide regulatory framework that "balances innovation with accountability." Why attempts at federal regulation have failed Some Republicans in Congress have previously tried and failed to ban states from regulating AI. Part of the challenge is that opposition is coming from their party's own ranks. Florida's Republican governor, Ron DeSantis, said a federal law barring state regulation of AI was "Not acceptable" in a post on X last month. DeSantis argued that the move would be a "subsidy to Big Tech" and would stop states from protecting against a list of things, including "predatory applications that target children" and "online censorship of political speech." A federal ban on states regulating AI is also unpopular, said Cody Venzke, senior policy counsel at the ACLU's National Political Advocacy Department. "The American people do not want AI to be discriminatory, to be unsafe, to be hallucinatory," he said. "So I don't think anyone is interested in winning the AI race if it means AI that is not trustworthy." What could be next for the executive order There's a good chance it ends up being part of a court battle. Democratic state attorneys general and governors have already challenged scores of policies in Trump's executive orders in court. No one has announced a lawsuit over this one yet, but it's an area with bipartisan interest. In May, attorneys general for 40 states and territories - Republicans and Democrats - signed a letter to congressional leaders calling on them not to pass a provision blocking state AI regulation for 10 years. Shatorah Roberson, a senior policy counsel at the Lawyers' Committee for Civil Rights Under Law, says that in this case, it's clear that the president does not have the authority to preempt state laws. "This is an issue of our democracy and the president through executive order can't just preempt state laws without going through the democratic process," she said. California state Sen. Scott Wiener, who authored a landmark AI safety bill that was signed into law this year, called the order "blatantly corrupt and blatantly illegal." "If the Trump Administration tries to enforce this ridiculous order, we will see them in court," Wiener, a Democrat, said in a statement.

[55]

Chamath Palihapitiya Argues State-Level AI Laws Threaten US Dominance, Backing Trump's AI Overhaul: 'China Is Unified' - Alphabet (NASDAQ:GOOGL)

Silicon Valley venture capitalist Chamath Palihapitiya has publicly endorsed President Donald Trump's new executive order aimed at dismantling state-level artificial intelligence (AI) regulations, arguing that a fragmented legal landscape threatens the investment pipeline driving the American economy. Economic Case For Federal Standard Palihapitiya's comments come immediately after the White House announced a sweeping directive to establish a single national AI framework, a move designed to override what the administration calls "excessive State regulation." In a statement on X, Palihapitiya argued that the federal government must take the lead in defining the rules of the road for the burgeoning technology. He warned that navigating a "patchwork" of contradictory laws across the country would stifle the capital needed to fuel innovation. "Playing a game with 50 sets of rules isn't viable," Palihapitiya wrote. "Having to do so would slow down investment." He emphasized that the stakes are remarkably high, noting that AI investments are "currently responsible for half of American GDP." For the "All-In" podcast co-host, the executive order represents a crucial opportunity to create a streamlined environment where these investments can continue unimpeded. See Also: Trump Signs Executive Order Targeting 'Excessive State Regulation' of AI, Will Launch Task Force To Challenge Laws 'Inconsistent' With Federal Policy Unified Against Global Competitors Palihapitiya's endorsement aligns closely with the geopolitical rationale used by the Trump administration. He shared a clip of the President signing the order, highlighting the quote: "We have to be unified. China is unified." The executive order explicitly positions U.S. leadership in AI as a matter of national security, warning that the country is in a "race with adversaries for supremacy." To enforce this unified front, the Department of Justice is launching an AI Litigation Task Force tasked with suing states whose laws are inconsistent with federal policy or burden interstate commerce. Win For Big Tech The move marks a significant victory for major AI players, including OpenAI, Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), and Meta Platforms Inc. (NASDAQ:META), who have lobbied heavily for federal preemption of stricter state laws. However, the deregulation push has drawn sharp criticism from progressives. Senator Bernie Sanders (I-Vt.) condemned the order as a gift to "oligarchs," arguing it allows tech billionaires to operate without sufficient oversight at the expense of workers. Here is a list of a few AI-linked ETFs for investors to consider: Read Next OpenAI Steps Up Lobbying Efforts As It Seeks To Shape AI Regulations Amid Growing Concerns About Safety Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock/ Brian Jason GOOGLAlphabet Inc$313.500.34%OverviewFDNFirst Trust DJ Internet Index Fund$273.32-0.04%FTECFidelity MSCI Information Technology Index ETF$230.92-0.25%GOOGAlphabet Inc$314.700.32%IGMiShares Expanded Tech Sector ETF$133.00-0.32%IXNiShares Global Tech ETF$107.45-0.60%IYWiShares U.S. Technology ETF$203.22-0.19%MAGSRoundhill Magnificent Seven ETF$66.67-0.02%METAMeta Platforms Inc$652.01-0.11%QTUMDefiance Quantum ETF$115.500.30%Market News and Data brought to you by Benzinga APIs

[56]

PYMNTS

Trump Plans Executive Order This Week to Squelch State AI Regulations | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The statement by Trump comes days after Republican leadership on Capitol Hill agreed to remove a provision from the National Defense Authorization Act bill that would ban states from enacting or enforcing laws affecting AI for 10 years. The same measure had been removed at the last minute from the One Big Beautiful budget bill passed earlier this year. The executive order, a draft of which leaked last week, would create an "AI Litigation Task Force" with the Department of Justice to challenge state laws in court, direct federal agencies to evaluate state laws deemed "onerous," and push the Federal Communications Commission (FCC) and Federal Trade Commission (FTC) toward national standards that override state rules. Federal preemption of state laws has become a top policy priority for the AI industry and investors. States lawmakers have introduced over 1,000 related to AI, and California, New York, Colorado and Tennessee, among others, have enacted statutes to regulate various uses of the technology. Former Silicon Valley VC David Sacks, who now serves as White House "AI czar," has also been a strong supporter of federal preemption. Last month, per CNBC, a new industry super PAC named New York State Assemblyman Alex Bores, author of the state's RAISE Act and who is now running for the Manhattan Congressional seat being vacated by the retiring Jerry Nadler, as the first target of a $10 million advertising campaign aimed at defeating candidates that oppose their agenda. Related: State AI Moratorium Dropped From Defense Authorization Bill Although backing for preemption has generally come from Republicans, not all in the GOP support the idea. Florida governor Ron DeSantis, a potential 2028 presidential candidate, said in a post on X last week, "I oppose stripping Florida of our ability to legislate in the best interest of the people." He also released a package of legislative proposals last week aimed at protecting Floridians' personal data from misuse by AI systems and restricting development of data centers. Sens. Josh Hawley (R-MO) and Marsha Blackburn (R-TN) have also strongly opposed federal preemption. Last month, coalition of 36 state attorneys general, including Republicans as well as Democrats, sent a letter to the bipartisan leaders of the House and Senate opposing federal preemption. "States must be empowered to apply existing laws and formulate new approaches to meet the range of challenges associated with AI," the letter said. What effect Trump's EO will have is uncertain. "The executive branch is limited in what it can do," Mackenzie Arnold, director of US policy at the think tank LawAI, told the Financial Times. "Agencies can only pre-empt state law insofar as Congress has given them the power to, and in this case, neither the Federal Communications Commission nor the Federal Trade Commission has that power."

[57]

'It's got to be one source...': Trump signs executive order aimed at curbing state AI laws

President Donald Trump signed an executive order Thursday that aims to neuter state laws that place limits on the artificial intelligence industry, a win for tech companies that have lobbied against regulation of the booming technology. Trump, who has said it is important for the United States to dominate AI, has criticized the state laws for generating a confusing patchwork of regulations. He said his order would create one federal regulatory framework that would override the state laws, and added that it was critical to keep the United States ahead of China in a battle for leadership on the technology. "It's got to be one source," Trump said to reporters in the Oval Office. "You can't go to 50 different sources."

[58]

Trump Signs Executive Order Targeting 'Excessive State Regulation' of AI, Will Launch Task Force To Challenge Laws 'Inconsistent' With Federal Policy - Alphabet (NASDAQ:GOOG), Meta Platforms (NASDAQ:META)

President Donald Trump signed a sweeping executive order aimed at creating a single national framework for artificial intelligence, moving to sideline state-level rules he argued were hindering America's ability to maintain its leadership in this space. Order Targets 'Excessive State Regulation' of AI On Thursday, Trump signed the order aimed at curbing what he calls "excessive State regulation" of artificial intelligence, rolling out a series of steps to confront existing state laws that he said were hurting the industry. In the order, Trump warned that U.S. leadership in AI is central to "national and economic security and dominance across many domains," arguing that a growing thicket of state-level statutes is undermining that goal. He said the country remains "in the earliest days of this technological revolution" and is "in a race with adversaries for supremacy within it." See Also: Nvidia CEO Huang Blasts Proposed State AI Laws Moments After Trump Meeting Trump criticized state laws on AI that create a "patchwork of 50 different regulatory regimes," noting that it hinders the industry's development. To counter this, the administration is launching an AI Litigation Task Force within the Department of Justice. Its sole responsibility will be to challenge state AI laws "inconsistent with the policy" of establishing a minimally burdensome national standard. The task force may sue states on grounds that their laws "unconstitutionally regulate interstate commerce," are preempted by federal regulations, or are otherwise unlawful. Trump said a unified framework is necessary to ensure "the United States wins the AI race, as we must." Outcome of Big Tech Lobbying Efforts This marks a big win for leading AI companies such as ChatGPT-parent OpenAI, Alphabet Inc. (NASDAQ:GOOG) and Meta Platforms Inc. (NASDAQ:META), which have been shoring up their lobbying efforts on Capitol Hill over the past couple of months. Leaders such as Sen. Bernie Sanders (I-Vt.) have criticized Trump's plans to override state AI laws, calling it a gift to wealthy big tech executives at the expense of workers. "Trump wants to deregulate AI and let the richest people on earth do whatever they want. Unacceptable," Sanders said, in a post on X last month. Photo Courtesy: Joshua Sukoff on Shutterstock.com Read More: Trump's AI Czar David Sacks Supports President's 'One Rulebook' For The Technology, Warns 50-State Regulatory Patchwork Could Cripple US GOOGAlphabet Inc$314.700.32%OverviewMETAMeta Platforms Inc$652.01-0.11%Market News and Data brought to you by Benzinga APIs

[59]

New York Post

Tech honchos rejoice as Trump signs order kneecapping California AI...

Tech bosses rejoiced as President Donald Trump signed an executive order to stymie states from enforcing AI regulations -- delighting the president's allies but infuriating critics who say that AI left unchecked could kill jobs and risk people's safety. Trump directed the US attorney general to create an "AI litigation task force" to challenge state regulations that could impede a national regulatory standard -- a move that critics say is illegal. The president also aims to make state funding contingent on compliance with the order. Billionaires including David Sacks, the White House AI and crypto czar who pushed the executive order, celebrated its signing and said it would help companies who might otherwise have to navigate a patchwork of state laws. "Thank you to President Trump for his extraordinary vision and leadership on AI and for looking out for the interests of the entire country, as the Framers of the Constitution intended and as only the President of the United States can do," gushed Sacks in a Dec. 8 post on X. "Playing a game with 50 sets of rules isn't viable. Having to do so would slow down investment," wrote Chamath Palihapitiya, venture capitalist and Trump ally who co-hosts the All-In podcast with Sacks, on X. The two looked in festive spirits around the signing, with Palihapitiya sharing a Christmas greeting Thursday showing him and Sacks cheesing at the White House. The executive order was a culmination of months of lobbying by top firms like OpenAI, Nvidia, and Google. California stands to lose as much as $1.8 billion in federal broadband funding if it enforces AI regulations in conflict with the order, per the LA Times. Backers of the order argue that lower regulatory burdens will help ensure U.S. development of AI remains competitive with China, and that entrepreneurs will prosper free from pesky state bills. Sacks, on Fox Business, argued that AI has created a "broad-based boom" boosting plumbers, electricians and other blue-collar workers. "What we're actually seeing is a huge boom that's benefiting construction workers," Sacks told Fox host Maria Bartiromo. Others have a much dimmer take, saying the order violates states' rights and smacks of a giveaway to Trump fans in Silicon Valley. "This blatantly corrupt and blatantly illegal order is a gift to David Sacks and other MAGA donors at the expense of transparency and public safety," said California state Sen. Scott Wiener, who authored a bill requiring AI companies to disclose safety incidents. "If the Trump Administration tries to enforce this ridiculous order, we will see them in court," Wiener added.

[60]

BNN

Trump threatens funding for states over AI regulations

WASHINGTON -- U.S. President Donald Trump on Thursday said he will withhold federal broadband funding from states whose laws to regulate artificial intelligence are judged by his administration to be holding back American dominance in the technology. "We want to have one central source of approval," Trump told reporters, flanked by top advisers, including Treasury Secretary Scott Bessent, arguing that 50 different regulatory regimes hamper the growth of the nascent industry. "To win, United States AI companies must be free to innovate without cumbersome regulation," the order said, adding that the current patchwork of different regulatory regimes made compliance more challenging, especially for start-ups. Trump has embraced AI as a critical technology, working closely with U.S. companies to boost investment in a sector where China has also made great strides. But critics worry that unfettered development could leave Americans vulnerable. The order also reflects the Trump administration's broader attack against anti-discrimination efforts, taking aim at states such as Colorado that have sought to prevent discriminatory language from being embedded in AI models. Such efforts could result in "ideological bias" and produce false results, it said. The order will give the Trump administration tools to push back on the most "onerous" state regulations, said White House AI adviser David Sacks. The administration will not oppose rules governing AI that relate to child safety, he added. It directs the Secretary of Commerce to evaluate state laws for conflicts with Trump's AI priorities and to block those states in conflict from accessing the US$42-billion Broadband Equity Access and Deployment fund. Democratic Representative Don Beyer, who co-chairs a bipartisan caucus on AI, said the order would squelch safety reforms passed by states and create "a lawless Wild West environment for AI companies that puts Americans at risk." He warned that the order would reduce the likelihood of congressional action and likely violated the 10th Amendment, which says that any powers not specifically given to the federal government belong to the states or the people. Trump's order called for his administration to work with Congress to craft a national standard that forbids state laws which conflict with federal policy, protects children, prevents censorship, respects copyrights and protects communities. Until such a standard was in place, the order called for actions to "check the most onerous and excessive laws emerging from the states that threaten to stymie innovation." Major AI players including ChatGPT maker OpenAI, Alphabet's Google, Meta Platforms, and venture capital firm Andreessen Horowitz have said the federal government, not states, should regulate the industry. Yet state leaders from both major political parties have said they need the power to put guardrails around AI, particularly as Congress has consistently failed to pass laws governing the tech industry. New York state last month became the first to enact a law requiring online retailers that employ "surveillance pricing" to disclose their use of algorithms and customers' personal data. California and lawmakers in Washington are considering bans on such methods, which are also known as "personalized pricing." Florida Governor Ron DeSantis, a Republican, has proposed an AI bill of rights that includes data privacy, parental controls and consumer protections. California Governor Gavin Newsom, whose state is home to several major AI companies, signed off on a bill this year requiring major AI developers to explain plans to mitigate potential catastrophic risks. Other states have passed laws banning AI-generated non-consensual sexual imagery and unauthorized political deepfakes. By Andrea Shalal, Jody Godoy and Courtney Rozen

[61]

Investing.com

Trump signs executive order creating national AI regulatory framework By Investing.com

Investing.com-- U.S. President Donald Trump on Thursday signed an executive order establishing a national standard for regulating artificial intelligence, aiming to preempt a growing patchwork of state AI laws and centralize oversight in Washington. The order creates "one central source of approval" for AI governance, empowering federal agencies to challenge onerous state rules, though it exempts certain protections such as those involving children's safety, Trump said during the signing. State officials from both parties have criticized the action, arguing that states should retain authority to protect privacy and consumer rights. Several states, including California and Florida, have already passed their own AI laws on issues ranging from deepfakes to risk mitigation. In a related move, the administration on Thursday also announced new federal requirements for AI vendors to measure political bias in large language models for eligibility in government contracts.

[62]

PYMNTS

Trump to Sign Executive Order Preventing States From Regulating AI | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. "There must be only One Rulebook if we are going to continue to lead in AI," he wrote in a post on Truth Social. "We are beating ALL COUNTRIES at this point in the race, but that won't last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS. THERE CAN BE NO DOUBT ABOUT THIS! AI WILL BE DESTROYED IN ITS INFANCY! I will be doing a ONE RULE Executive Order this week. You can't expect a company to get 50 Approvals every time they want to do something. THAT WILL NEVER WORK!" It was reported Tuesday (Dec. 2) that Republican leadership on Capitol Hill confirmed that an AI moratorium would not be added to a must-pass National Defense Authorization Act (NDAA) as proposed in November, despite intense pressure from the White House to include it. The AI moratorium would have imposed a ban on states enacting laws to regulate artificial intelligence. Its exclusion from the NDAA marked the second time leadership was forced to strip the provision from a larger bill. The state-law moratorium measure was originally attached to the sweeping "One Big Beautiful Bill" passed in August but was stripped out in the face of bipartisan opposition. It was reported in November that the Trump administration was considering new challenges to state-level AI regulation, including an executive order calling for an attorney general-led task force to challenge AI laws deemed too burdensome. The order would also call for federal funding to be withheld from those states via a federal interest access program, The Wall Street Journal reported at the time, citing a draft of the order seen by the WSJ, as well as sources familiar with the discussion. Big Tech companies have pressed the White House and Congress to pass legislation that would block states from regulating AI. Tech industry representatives argue that the regulation would slow the development of artificial intelligence, that a patchwork of state laws would be more difficult to deal with than federal legislation, and that regulations should apply to how the technology is used, rather than the technology itself. However, there is a growing divide on AI regulation and development between the federal government and the states. State lawmakers have introduced hundreds of bills addressing a wide range of AI-related issues. On Thursday (Dec. 4), Florida Governor Ron DeSantis (R), a potential 2028 presidential candidate, announced a package of legislative proposals aimed at protecting Floridians' personal data from misuse by AI systems and restricting development of data centers. Without sufficient safeguards, DeSantis said at a news conference, AI could usher in "an age of darkness and deceit."

[63]

Trump signs executive order to block state AI regulations

President Trump signed an executive order Thursday to block states from creating their own AI regulations, citing concerns about stifling innovation and falling behind China. The order directs the Attorney General to challenge state laws and the Commerce Department to identify problematic rules, threatening to restrict funding for states with AI legislation. President Donald Trump signed an executive order Thursday aimed at blocking states from crafting their own regulations for artificial intelligence, saying the burgeoning industry is at risk of being stifled by a patchwork of onerous rules while in a battle with Chinese competitors for supremacy. Members of Congress from both parties, as well as civil liberties and consumer rights groups, have pushed for more regulations on AI, saying there is not enough oversight for the powerful technology. But Trump told reporters in the Oval Office that "there's only going to be one winner" as nations race to dominate artificial intelligence, and China's central government gives its companies a single place to go for government approvals. "We have the big investment coming, but if they had to get 50 different approvals from 50 different states, you can forget it because it's impossible to do," Trump said. The executive order directs the Attorney General to create a new task force to challenge state laws, and directs the Commerce Department to draw up a list of problematic regulations. It also threatens to restrict funding from a broadband deployment programme and other grant programmes to states with AI laws. David Sacks, a venture capitalist with extensive AI investments who is leading Trump's policies on cryptocurrency and artificial intelligence, said the Trump administration would only push back on "the most onerous examples of state regulation" but would not oppose "kid safety" measures. What states have proposed Four states -- Colorado, California, Utah and Texas -- have passed laws that set some rules for AI across the private sector, according to the International Association of Privacy Professionals. Those laws include limiting the collection of certain personal information and requiring more transparency from companies. The laws are in response to AI that already pervades everyday life. The technology helps make consequential decisions for Americans, including who gets a job interview, an apartment lease, a home loan and even certain medical care. But research has shown that it can make mistakes in those decisions, including by prioritising a particular gender or race. States' more ambitious AI regulation proposals require private companies to provide transparency and assess the possible risks of discrimination from their AI programmes. Beyond those more sweeping rules, many states have regulated parts of AI: barring the use of deepfakes in elections and to create non-consensual porn, for example, or putting rules in place around the government's own use of AI.

[64]

New York Post

Democrats will strangle AI with woke rules -- unless Trump takes...

After watching President Bill Clinton let the internet grow without federal rules, Democrats want to control artificial intelligence -- and if need be, to kill it in the crib. The only question is, where? The executive order issued by President Joe Biden would have turned AI into a federal hand puppet serving the public policy goals of unions, educators and leftist activists. But President Donald Trump reversed it, closing that path. Now Democrats are looking to blue states to regulate AI instead, balkanizing its development under a hodgepodge of state rules. That's why Trump is pushing to place AI under federal jurisdiction. He's aiming to preempt state authority, thus avoiding a European Union-style AI quagmire here while protecting America's national security position vis-à-vis China. But Trump's efforts are not going well. In 1996, as the internet age dawned, Clinton declared that "the private sector should lead" its development. Under his policy, the web "develop[ed] as a market-driven arena, not a regulated industry." Clinton's approach meshed with those of congressional Republicans: Their 1996 Telecommunications Act established federal control over interstate service, with limits on liability exposure. Today's mobile communications miracles, with thousands of apps serving users on millions of phones, is a legacy to Clinton's pragmatism. Biden's AI legacy would have been the opposite. His EO, among the longest in history, imposed a federal top-down, command-and-control regulatory approach. It required AI models to undergo extensive "impact assessments" before going forward, and "post-deployment performance monitoring" as well. America's AI would have been forced to reflect Biden's "dedication to advancing equity and civil rights" by advancing "racial equity and support for underserved communities" and by improving "environmental and social outcomes." Now, with Biden out and Trump in, the AI traps have moved to the states -- with California, of course, and Colorado taking the lead. California has long wielded its economy -- the fourth-largest in the world -- in a tail-wagging-the-dog approach to push political and social change. It's thrown its economic weight around to make all US businesses meet California's standards, such as its stringent CAFE auto fuel-efficiency rules. California's proposed AI legislation would empower its state attorney general as an AI uber-czar, making all AI models comply with Sacramento's requirements for "safe, ethical, equitable, and sustainable" systems. With $1 million in fines per violation, California's law would create massive industry uncertainty, hindering AI's development. Colorado's state law involves a "Mother, may I" approach to AI innovation -- a process so unworkable that its Democrat-controlled legislature and governor have agreed to delay implementation to ease its burdens on Colorado businesses. If AI nationwide developed under Colorado's rules, the US Chamber of Commerce projects, the US would lose 713,000 jobs, shed $53 billion of GDP and cut national productivity -- the single most important determinant of real wage growth -- by 1%. And that's just one state and one law, with more than 1,100 AI bills pending in state legislatures. To avoid an EU-like jambalaya of state rules and regulations, Sen. Ted Cruz (R-Texas) tried to add a limited federal preemption of state AI laws in the One Big Beautiful Bill when it was still being hammered out. Under Cruz's plan, states could still impose AI restrictions preventing unfair or deceptive practices and protecting children -- provided they did not impose excessive burdens on development. His solution left some hot topics unaddressed -- in particular, that of AI models' use of intellectual property and their allegedly illegal lifting of copyrighted work. But the Cruz amendment failed, and Congress remains deadlocked on a potential federal solution. That's why Trump is on the verge of taking action. "There must be only One Rulebook if we are going to continue to lead in AI," he declared Monday in a Truth Social post. This week, the president is expected to issue an executive order to put Cruz's proposal into practice, limiting states' ability to handcuff AI development. To give it teeth, the order could direct regulators to withhold federal broadband funding and other grants from states that implement restrictive AI laws. It's a jerry-rigged solution at best: Federal legislation is still necessary to effectively override state AI rules. Congress' next shot will come in the New Year, as part of the Jan. 30 government funding bill. Leaving the cutting-edge technology that will determine both our nation's future economic prospects and its military security in the hands of 50 state legislatures seems unwise and dangerous -- but that appears to be Congress' plan.

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BNN

Trump signs order aimed at curbing state AI laws

WASHINGTON - U.S. President Donald Trump on Thursday signed an executive order on artificial intelligence that will attempt to preempt a growing number of state laws governing the technology with a national standard. "We want to have one central source of approval," Trump told reporters, flanked by top advisers, including Treasury Secretary Scott Bessent. The order will give the Trump administration tools to push back on the most "onerous" state regulations, said White House AI adviser David Sacks. The administration will not oppose rules governing AI and kids safety, he added. Major AI players including ChatGPT maker OpenAI, Alphabet's Google, Meta Platforms, and venture capital firm Andreessen Horowitz have said the federal government, not states, should regulate the industry. Yet state leaders from both major political parties have said they need the power to put guardrails around AI, particularly as Congress has consistently failed to pass laws governing the tech industry. Florida Governor Ron DeSantis, a Republican, has proposed an AI bill of rights that includes data privacy, parental controls and consumer protections. California Governor Gavin Newsom, whose state is home to several major AI companies, signed off on a bill this year requiring major AI developers to explain plans to mitigate potential catastrophic risks. Other states have passed laws banning AI-generated nonconsensual sexual imagery and unauthorized political deepfakes.

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Trump's AI Czar David Sacks Supports President's 'One Rulebook' For The Technology, Warns 50-State Regulatory Patchwork Could Cripple US

Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity Newsletter Venture capitalist David Sacks is backing President Donald Trump's push for a "one rulebook" for Artificial Intelligence, warning that fragmented state laws could undermine U.S. innovation and global competitiveness. Unified Rulebook Not 'AI Amnesty' On Monday, Sacks, who currently serves as the Chair of the President's Council of Advisors on Science and Technology, lauded Trump's move in a post on X, saying that it was not an "AI amnesty" or "AI moratorium," but rather an attempt to determine "a question of jurisdiction." He argued that when AI development, training and deployment occur across multiple states, it is "clearly interstate commerce," which is exactly the type of economic activity that the writers of the Constitution "intended to reserve for the Federal government." See Also: AI Isn't Just Replacing Workers. It Is Also Making College Degrees Less Valuable And Can Leave Recent Graduates With 'Long-Lasting Scars For Decades' Sacks said the absence of federal preemption has already produced a "patchwork of 50 different regulatory regimes," pointing to more than 1,200 state-level bills and over 100 enacted measures. He pointed to states such as Colorado, California and Illinois, which have created liability for AI developers if their models contribute to "algorithmic discrimination," defined as having a "disparate impact" on protected groups. "This type of ideological meddling is how we ended up with 'black George Washington,'" Sacks said, referring to Google's Gemini, which was accused of generating historically inaccurate images last year. According to Sacks, "AI models should strive for the truth and be ideologically unbiased." He cautioned that if every state sets its own rules, the industry could splinter into "50 different AI models for 50 different states," creating what he called a regulatory morass "worse than Europe" that would slow innovation, squeeze smaller startups, and leave room for China to "race ahead." Sacks addressed concerns around "the 4 C's," which refers to child safety, communities, creators and censorship, which he said will remain protected under a federal framework. He added that a fifth concern, "competitiveness," should guide national policy. Executive Order On AI Expected This Week In a Truth Social post on Monday, Trump argued that "AI will be destroyed in its infancy" if each of the 50 states adopts its own regulatory framework, while adding that many of those states were "bad actors." According to a draft order that was obtained last month, the government will create an AI Litigation Task Force inside the Justice Department, with the sole purpose of challenging state AI laws that federal officials believe is hindering the industry's growth. Sen. Bernie Sanders (I-Vt.) criticized Trump's plan, saying, "Trump wants to deregulate AI and let the richest people on earth do whatever they want. Unacceptable." Read More: Google CEO Sundar Pichai Predicts AI Will Act For You -- From Investments To Medical Advice -- Calling The Coming Shift 'Really Interesting' Photo Courtesy: otello-stpdc on Shutterstock.com Market News and Data brought to you by Benzinga APIs

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Investing.com

Trump to issue executive order on AI regulation this week By Investing.com

Investing.com -- President Trump announced plans to issue an executive order this week aimed at creating a unified regulatory framework for artificial intelligence in the United States. In a post on Truth Social, Trump emphasized the need for a single set of rules governing AI development, arguing that having regulations vary across all 50 states would hinder American leadership in the technology. "There must be only One Rulebook if we are going to continue to lead in AI," Trump wrote. "We are beating ALL COUNTRIES at this point in the race, but that won't last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS." The president expressed concern that fragmented state-level regulations would impede innovation in the AI sector. "You can't expect a company to get 50 Approvals every time they want to do something. THAT WILL NEVER WORK!" he stated. Trump indicated his executive order would establish a unified regulatory approach, though specific details about the planned "ONE RULE" framework were not provided in his announcement.

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Trump says he will sign executive order this week on AI approval process

President Donald Trump said on Monday he would sign an executive order this week related to the artificial intelligence approval process to avoid having different rules in each US state. "There must be only One Rulebook if we are going to continue to lead in AI... I will be doing a ONE RULE Executive Order this week. You can't expect a company to get 50 Approvals every time they want to do something," Trump said in a post on Truth Social. Trump did not provide details on the executive order but Reuters reported last month that the US president was considering an executive order that would seek to preempt state laws on AI through lawsuits and by withholding federal funding. ChatGPT maker OpenAI, Alphabet's Google, Meta Platforms, and venture capital firm Andreessen Horowitz have called for national AI standards instead of a 50-state patchwork of laws, saying the laws stifle innovation. The move is likely to face pushback from the states, who have previously warned of "disastrous consequences" if the technology is left unregulated.

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Trump's order targeting state AI laws faces political and legal hurdles

Dec 12 (Reuters) - U.S. President Donald Trump's executive order seeking to bar state laws on artificial intelligence that he says slow innovation will face political and legal opposition from states seeking to preserve their right to regulate the rapidly growing technology. The order instructing federal agencies to sue and withhold funds from states whose AI laws the administration deems problematic is a win for tech companies, who argue a patchwork of state laws hinders U.S. competition with China on AI. But the Trump administration will face legal obstacles in implementing it, experts said, and potential opposition from Republican states. "There is not a lot of legal authority that the administration can rely on to enforce a significant portion of the order," said Joel Thayer, head of the Digital Progress Institute. FIGHTS OVER INTERNET ACCESS FUNDING One of the order's major enforcement mechanisms directs the Commerce Department to block states with onerous AI regulations from the $42 billion Broadband Equity, Access, and Deployment program (BEAD). The order might be opposed by some of the president's staunchest rural supporters. BEAD funding is vital for increasing Internet access in rural areas, a key voting group for Trump. He won voters living in rural areas by 40 percentage points (69%-29%) in 2024, which was higher than his margins in 2020 or 2016. Dean Ball, a former White House official who contributed to the AI Action Plan the administration issued in the summer, said the attempt to tie the funding to AI laws faces uncertainty. Courts would consider how related the AI laws are to the purpose of the broadband statute, and the fact that many states have already received funding pre-approval. Whether Congress intended to give the administration authority over state AI regulation when it authorized broadband funding will also be a significant legal question, he said. "I think the administration has a 30 to 35% chance of this working legally," said Ball. Some Republican governors, including Arkansas Governor Sarah Huckabee Sanders, have previously spoken against the federal government blocking their states' laws. Florida Governor Ron DeSantis, a Republican, last month called a then-pending bid by Congress to block states from regulating AI a "subsidy to Big Tech." DeSantis has proposed an AI bill of rights that includes data privacy, parental controls and consumer protections. CHALLENGE OVER INTERSTATE COMMERCE The order also tasks the Department of Justice with challenging state laws because they violate the Constitution by meddling in interstate commerce. Venture capital firm Andreessen Horowitz has supported that argument, saying the Supreme Court has held that the Constitution implicitly limits state lawmaking authority. But courts have rejected previous attempts to block state privacy legislation by invoking that part of the Constitution known as the "dormant commerce clause," said Slade Bond, a former DOJ official who works with Americans for Responsible Innovation, a group that has opposed blocking state AI laws. "The lodestone of the constitutional analysis is really about, are you treating out-of-state businesses differently than in-state businesses?" Bond said. (Reporting by Jody Godoy in New York, additional reporting by Karen Freifeld and Courtney Rozen in WashingtonEditing by Rod Nickel)

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New York Post

Trump to issue 'one rulebook' AI executive order after Congress fails...

WASHINGTON -- President Trump vowed to take executive action this week establishing "One Rulebook" nationally for regulating artificial intelligence after similar efforts repeatedly failed in Congress. Trump contended that allowing all 50 states to craft their own rules on AI would cripple America's competitiveness in the global race to master the emerging and powerful technology. "There must be only One Rulebook if we are going to continue to lead in AI," Trump declared on Truth Social Monday. "We are beating ALL COUNTRIES at this point in the race, but that won't last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS. THERE CAN BE NO DOUBT ABOUT THIS! AI WILL BE DESTROYED IN ITS INFANCY!" Congress has repeatedly been forced to scrap plans for an AI moratorium on state-level tech regulation after enough members revolted. The most recent attempt was to tack an AI moratorium into the National Defense Authorization Act (NDAA), which was rolled out Sunday evening, but GOP leadership confirmed that the attempt was abandoned. Over the summer, lawmakers tried to sneak a 10-year federal pause on state-level AI regulation into the GOP's marquee One Big Beautiful Bill Act, now known as the Working Families Tax Cut Act, but that bid failed as well. Several prominent Republicans, such as retiring firebrand Rep. Marjorie Taylor Greene (R-Ga.), staunchly opposed the moratorium, arguing in favor of federalism. Throughout Trump's second term, the president has sought to ensure the US dominates the AI race and has courted Big Tech giants. He tapped White House AI and Crypto Czar David Sacks as his point person to oversee that effort. Last month, Politico reported on leaked plans for an executive order to push back on states creating a labyrinth of AI rules by establishing an "AI Litigation Task Force" to slap lawsuits against states. Those lawsuits would center around the notion "that such laws unconstitutionally regulate interstate commerce, are preempted by existing Federal regulations, or are otherwise unlawful." "You can't expect a company to get 50 Approvals every time they want to do something. THAT WILL NEVER WORK!" Trump added on Truth Social. The NDAA was one of the last major legislative vehicles lawmakers had been eyeing this year to pass an AI moratorium. NDAAs are required annual bills to set policy for national security and defense. This year's defense budget clocked in $8 billion more than the $892.6 billion that Trump sought for the department. It also repeals two Authorization for Use of Military Force (AUMFs), including the AUMF for the 1991 Gulf War and the 2002 AUMF that came before the invasion of Iraq. Other significant policies for Trump in the NDAA include codification of 15 of his executive orders and a further crackdown on diversity, equity, and inclusion initiatives in the Department of War.

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Trump signs order aimed at curbing state AI laws

WASHINGTON, Dec 11 (Reuters) - U.S. President Donald Trump on Thursday signed an executive order on artificial intelligence that will attempt to preempt a growing number of state laws governing the technology with a national standard. "We want to have one central source of approval," Trump told reporters, flanked by top advisers, including Treasury Secretary Scott Bessent. The order will give the Trump administration tools to push back on the most "onerous" state regulations, said White House AI adviser David Sacks. The administration will not oppose rules governing AI and kids safety, he added. Major AI players including ChatGPT maker OpenAI, Alphabet's Google, Meta Platforms , and venture capital firm Andreessen Horowitz have said the federal government, not states, should regulate the industry. Yet state leaders from both major political parties have said they need the power to put guardrails around AI, particularly as Congress has consistently failed to pass laws governing the tech industry. Florida Governor Ron DeSantis, a Republican, has proposed an AI bill of rights that includes data privacy, parental controls and consumer protections. California Governor Gavin Newsom, whose state is home to several major AI companies, signed off on a bill this year requiring major AI developers to explain plans to mitigate potential catastrophic risks. Other states have passed laws banning AI-generated nonconsensual sexual imagery and unauthorized political deepfakes.

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Trump threatens funding for states over AI regulations

WASHINGTON, Dec 11 (Reuters) - U.S. President Donald Trump on Thursday said he will withhold federal broadband funding from states whose laws to regulate artificial intelligence are judged by his administration to be holding back American dominance in the technology."We want to have one central source of approval," Trump told reporters, flanked by top advisers, including Treasury Secretary Scott Bessent, arguing that 50 different regulatory regimes hamper the growth of the nascent industry. "To win, United States AI companies must be free to innovate without cumbersome regulation," the order said, adding that the current patchwork of different regulatory regimes made compliance more challenging, especially for start-ups. Trump has embraced AI as a critical technology, working closely with U.S. companies to boost investment in a sector where China has also made great strides. But critics worry that unfettered development could leave Americans vulnerable. The order also reflects the Trump administration's broader attack against anti-discrimination efforts, taking aim at states such as Colorado that have sought to prevent discriminatory language from being embedded in AI models. Such efforts could result in "ideological bias" and produce false results, it said. FEDERAL FUNDING THREATENED The order will give the Trump administration tools to push back on the most "onerous" state regulations, said White House AI adviser David Sacks. The administration will not oppose rules governing AI that relate to child safety, he added. It directs the Secretary of Commerce to evaluate state laws for conflicts with Trump's AI priorities and to block those states in conflict from accessing the $42 billion Broadband Equity Access and Deployment fund. Democratic Representative Don Beyer, who co-chairs a bipartisan caucus on AI, said the order would squelch safety reforms passed by states and create "a lawless Wild West environment for AI companies that puts Americans at risk." He warned that the order would reduce the likelihood of congressional action and likely violated the 10th Amendment, which says that any powers not specifically given to the federal government belong to the states or the people. Trump's order called for his administration to work with Congress to craft a national standard that forbids state laws which conflict with federal policy, protects children, prevents censorship, respects copyrights and protects communities. Until such a standard was in place, the order called for actions to "check the most onerous and excessive laws emerging from the states that threaten to stymie innovation". NUMEROUS STATE LAWS IN PLACE Major AI players including ChatGPT maker OpenAI, Alphabet's Google, Meta Platforms, and venture capital firm Andreessen Horowitz have said the federal government, not states, should regulate the industry. Yet state leaders from both major political parties have said they need the power to put guardrails around AI, particularly as Congress has consistently failed to pass laws governing the tech industry. New York state last month became the first to enact a law requiring online retailers that employ "surveillance pricing" to disclose their use of algorithms and customers' personal data. California and lawmakers in Washington are considering bans on such methods, which are also known as "personalized pricing." Florida Governor Ron DeSantis, a Republican, has proposed an AI bill of rights that includes data privacy, parental controls and consumer protections. California Governor Gavin Newsom, whose state is home to several major AI companies, signed off on a bill this year requiring major AI developers to explain plans to mitigate potential catastrophic risks. Other states have passed laws banning AI-generated non-consensual sexual imagery and unauthorized political deepfakes. (Reporting by Courtney Rozen and Andrea Shalal in Washington and Jody Godoy in New York; Additional reporting by Gram Slattery in Washington; Editing by Jamie Freed and Stephen Coates) By Andrea Shalal, Jody Godoy and Courtney Rozen

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