Trump's Executive Order Targets State AI Laws, Sparking Bipartisan Pushback and Legal Uncertainty
73 Sources
[1]
Trump tries to block state AI laws himself after Congress decided not to
President Trump issued an executive order yesterday attempting to thwart state AI laws, saying that federal agencies must fight state laws because Congress hasn't yet implemented a national AI standard. Trump's executive order tells the Justice Department, Commerce Department, Federal
[2]
Trump's AI executive order promises 'one rulebook.' Startups may get legal limbo instead. | TechCrunch
President Donald Trump signed an executive order Thursday evening that directs federal agencies to take aim at state AI laws, arguing startups need relief from a "patchwork" of rules. But legal experts and startups say the order could prolong uncertainty, sparking court battles that leave young
[3]
Trump Signs Executive Order That Threatens to Punish States for Passing AI Laws
President Donald Trump signed a highly anticipated executive order on Thursday that sets in motion a plan to establish a national regulatory framework for artificial intelligence while undercutting states' abilities to enact their own rules. The order, titled "Ensuring a National Policy Framework
[4]
'ONE RULE': Trump says he'll sign an executive order blocking state AI laws despite bipartisan pushback | TechCrunch
President Donald Trump said on Monday he plans to ink an executive order this week that would limit states from enacting their own regulation of AI technology. "I will be doing a ONE RULE Executive Order this week," Trump posted on social media. "You can't expect a company to get 50 Approvals
[5]
Trump Signs AI Executive Order Blocking State Regulations
President Donald Trump signed an executive order on Thursday that aims to block state regulations with the goal of creating a national framework for the tech industry to follow. The Ensuring a National Policy Framework for Artificial Intelligence executive order says the tech industry must be
[6]
Trump signs AI executive order pushing to ban state laws
President Donald Trump and Commerce Secretary Howard Lutnick look on as White House artificial intelligence (AI) and crypto czar David Sacks speaks On Thursday evening, with White House AI and crypto czar David Sacks looking over his shoulder, Donald Trump signed an executive order aiming to grab
[7]
Trump Signs Executive Order to Go After 'Burdensome' State AI Laws
UPDATE 12/11: President Trump on Thursday signed an executive order intended to override certain state laws on AI. The EO calls on various department heads to determine which state-level AI laws the administration deems objectionable. Attorney General Pam Bondi, for example, has 30 days to
[8]
What's at stake in Trump's executive order aiming to curb state-level AI regulation
President Donald Trump signed an executive order on Dec. 11, 2025, that aims to supersede state-level artificial intelligence laws that the administration views as a hindrance to innovation in AI. State laws regulating AI are increasing in number, particularly in response to the rise of generative
[9]
Trump gives state AI laws the presidential middle finger
Executive order sidesteps Congress and sets up Litigation Task Force President Trump and his patrons in big tech have long wanted to block states from implementing their own AI regulations. After failing twice to do so in Congress, the US president has issued an executive order that would attempt
[10]
Trump Says He'll Sign Executive Order Preempting State AI Regulations
Imad is a senior reporter covering Google and internet culture. Hailing from Texas, Imad started his journalism career in 2013 and has amassed bylines with The New York Times, The Washington Post, ESPN, Tom's Guide and Wired, among others. President Donald Trump plans to issue an executive order
[11]
Trump: US Needs One Set of AI Rules, Not 50, or Else 'AI WILL BE DESTROYED'
President Trump is preparing to block US states from regulating AI, claiming that a patchwork of potentially conflicting laws could cripple the technology's development. "There must be only One Rulebook if we are going to continue to lead in AI," Trump wrote in a Truth Social post on Monday. "We
[12]
Trump's AI order may be 'illegal,' Democrats and consumer advocacy groups claim
U.S. lawmakers say Rubio told Trump's Ukraine peace plan is Russia's 'wish list' It follows a push by some Republicans in Congress to impose a moratorium on state AI laws. A recent plan to tack on that moratorium to the National Defense Authorization Act was scuttled. Collin McCune, head of
[13]
Trump orders creation of litigation task force to challenge state AI laws
On Thursday evening, President Donald Trump signed an executive order calling for a single, nationwide regulatory framework governing artificial intelligence at the expense of the ability of different states to regulate the nascent technology. "To win, United States AI companies must be free to
[14]
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
[15]
Sam Altman Got What He Wanted
OpenAI turned 10 yesterday, and President Donald Trump incidentally gave the company a very special birthday gift: a sweeping executive order aiming to dismantle and preempt many state-level regulations of artificial intelligence. "There's only going to be one winner here, and it's probably going
[16]
Trump moves to override state AI regulations with new executive order
Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. What just happened? President Donald Trump signed an executive order Thursday granting the US attorney general broad authority to challenge state laws regulating artificial intelligence, setting the
[17]
Trump signs order blocking states from enforcing own AI rules
The move marks a win for technology giants who have called for US-wide AI legislation as it could have a major impact on America's goal of leading the fast-developing industry. AI company bosses have argued that state-level regulations could slow innovation and hinder the US in its race against
[18]
Trump Signs Executive Order to Neuter State A.I. Laws
President Trump signed an executive order on 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. Mr. Trump, who has said it is important for America to dominate
[19]
Against the Federal Moratorium on State-Level Regulation of AI
Cast your mind back to May of this year: Congress was in the throes of debate over the massive budget bill. Amidst the many seismic provisions, Senator Ted Cruz dropped a ticking time bomb of tech policy: a ten-year moratorium on the ability of states to regulate artificial intelligence. To many,
[20]
How Trump's tech advisers overcame a MAGA rebellion over AI
President Donald Trump signs an executive order on artificial intelligence on Thursday as, from left, senior White House AI policy adviser Sriram Krishnan, Sen. Ted Cruz (R-Texas), Commerce Secretary Howard Lutnick, White House AI and crypto czar David Sacks and Treasury Secretary Scott Bessent
[21]
Trump's AI-Regulation Ban Is a Threat to National Security
The United States should not be lobbied out of protecting its own future. On Monday, Donald Trump announced on Truth Social that he would soon sign an executive order prohibiting states from regulating AI. "You can't expect a company to get 50 Approvals every time they want to do something," the
[22]
Trump is trying to preempt state AI laws via an executive order. It may not be legal
President Trump, center, and Secretary of Commerce Howard Lutnick, right, listen as U.S. Sen Ted Cruz, R-Tex. speaks during a signing ceremony for an executive order on AI at the White House on Dec. 11, 2025. Alex Wroblewski/AFP via Getty Images hide caption The Trump administration is seeking to
[23]
Ron DeSantis Proposes AI Bill of Rights as Trump Says He'll Kill State AI Laws
Donald Trump said on Truth Social this morning that he plans to sign an executive order that will preempt any and all state regulations on AI, which was apparently news to Florida Governor Ron DeSantis, who just last week announced a proposal to establish an AI Bill of Rights for Floridians and
[24]
Gavin Newsom pushes back on Trump AI executive order preempting state laws
California governor says order pushes 'grift and corruption' instead of innovation just hours after president's dictum The ink was barely dry on Donald Trump's artificial intelligence executive order when Gavin Newsom came out swinging. Just hours after the order went public Thursday evening, the
[25]
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
[26]
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
[27]
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
[28]
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
[29]
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
[30]
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
[31]
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
[32]
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
[33]
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
[34]
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
[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
[36]
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
[37]
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
[38]
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
[39]
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
[40]
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
[41]
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
[42]
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
[43]
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
[44]
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
[45]
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
[46]
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
[47]
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
[48]
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
[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
[50]
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
[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
[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
[53]
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,
[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
[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
[56]
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
[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
[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'
[59]
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
[60]
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
[61]
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
[62]
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
[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,
[64]
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
[65]
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
[66]
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
[67]
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
[68]
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
[69]
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
[70]
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
[71]
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
[72]
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
[73]
Trump says he will sign executive order this week on AI approval process
Dec 8 (Reuters) - 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 U.S. state. "There must be only One Rulebook if we are going to continue to lead in AI... I will be
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President Trump signed an executive order directing federal agencies to challenge state AI laws, arguing for a single national framework. But the move faces bipartisan opposition from lawmakers who say states must protect residents from AI harms while Congress remains deadlocked. Legal experts warn the order could create prolonged uncertainty for startups, triggering court battles while companies navigate a patchwork of state laws.
Trump Signs Executive Order to Override State AI Laws
President Donald Trump signed an executive order Thursday titled "Ensuring a National Policy Framework for Artificial Intelligence," directing federal agencies to challenge state AI laws and establish a unified national regulatory framework
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. The executive order instructs the Justice Department, Commerce Department, Federal Communications Commission, and Federal Trade Commission to take action against what Trump calls a "patchwork of state laws" that threatens to stifle innovation1
.The order specifically targets Colorado's law requiring AI developers to protect consumers against "algorithmic discrimination," claiming it forces AI models to "embed ideological bias" and produce "false results"
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. Trump's directive comes after Congress rejected similar proposals twice, including a Ted Cruz-backed plan that failed 99-1 in a rare moment of bipartisan agreement4
.AI Litigation Task Force to Challenge State Regulations
Within 30 days, Attorney General Pam Bondi must create an AI Litigation Task Force whose sole responsibility is to challenge state AI laws on grounds they unconstitutionally regulate interstate commerce, are preempted by existing federal regulations, or are otherwise unlawful
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. The Commerce Department has 90 days to compile a list of "onerous" state AI laws, an assessment that could affect states' eligibility for broadband funding2
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.White House AI and crypto adviser David Sacks, a leading proponent of federal preemption, told Trump during the signing ceremony that the order "gives your administration tools to push back on the most onerous and excessive state regulations"
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. The order includes carveouts for state laws protecting children, promoting data center infrastructure, and encouraging government procurement of AI tools3
.Bipartisan Pushback From Congress and State Leaders
The move has triggered fierce bipartisan pushback from lawmakers who argue states must retain authority to protect residents from consumer harms. Sen. Ed Markey called it a gift to "Big Tech" after "months of failed lobbying and two defeats in Congress"
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. Sen. Maria Cantwell warned the "overly broad preemption threatens states with lawsuits and funding cuts for protecting their residents from AI-powered frauds, scams, and deepfakes"1
.Republican governors have also voiced opposition. Florida Gov. Ron DeSantis posted that he opposes "stripping Florida of our ability to legislate in the best interest of the people," while Sen. Marco Rubio warned Trump to "leave AI to the states" to preserve federalism
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. Rep. Marjorie Taylor Greene declared that "states must retain the right to regulate and make laws on AI"4
. A bipartisan coalition of over 35 state attorneys general warned Congress that overriding state AI laws could have "disastrous consequences"4
.Related Stories
Legal Uncertainty Threatens Startups More Than Big Tech
While the order promises "one rulebook," legal experts warn it may create prolonged legal uncertainty that hurts startups navigating conflicting state regulations while awaiting federal clarity
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. Sean Fitzpatrick, CEO of LexisNexis North America, predicts states will defend their consumer protection authority in court, with cases likely escalating to the Supreme Court2
.Andrew Gamino-Cheong, CTO of AI governance company Trustible, told TechCrunch the order will backfire on innovation: "Big Tech and the big AI startups have the funds to hire lawyers to help them figure out what to do, or they can simply hedge their bets. The uncertainty does hurt startups the most"
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. Legal ambiguity makes it harder to sell to risk-sensitive customers like legal teams, financial firms, and healthcare organizations, increasing sales cycles and insurance costs2
.Hart Brown, principal author of Oklahoma Gov. Kevin Stitt's Task Force on AI recommendations, noted that startups "typically do not have robust regulatory governance programs until they reach a scale that requires a program. These programs can be expensive and time-consuming to meet a very dynamic regulatory environment"
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.What Happens Next: Court Battles and Congressional Action
Travis Hall, director for state engagement at the Center for Democracy & Technology, emphasized that "the power to preempt rests firmly with Congress, and no executive order can change that"
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. Americans for Responsible Innovation criticized the order for relying on "a flimsy and overly broad interpretation of the Constitution's Interstate Commerce Clause cooked up by venture capitalists over the last six months"1
.Sen. Brian Schatz announced plans to introduce legislation for a full repeal of the order, stating that "preventing states from enacting common-sense regulation that protects people from the very real harms of AI is absurd and dangerous"
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. Morgan Reed, president of The App Association, urged Congress to quickly enact a "comprehensive, targeted, and risk-based national AI framework," warning that "a lengthy court fight over the constitutionality of an Executive Order isn't any better" than conflicting state regulations2
.The order leaves companies facing two extremes: highly restrictive rules or no action at all, potentially creating a "wild west" that favors Big Tech's ability to absorb risk and wait things out
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. With state laws still enforceable unless courts block them, the tech industry faces an extended transition period while watching whether Congress can agree on a single national regulatory framework.References
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