President Donald Trump signed a federal executive order at the White House that preempts U.S. states from enforcing their own artificial intelligence (AI) laws, asserting federal control over AI regulation.
Key Provisions and Enforcement Mechanisms
- Federal Control: Trump argued that AI companies require a "central source of approval" rather than seeking permission from multiple state governments (like California or New York).
- Legal Challenges: The order directs Attorney General Pamela Bondi to establish an AI Litigation Task Force. This group is tasked with filing lawsuits against states whose AI laws conflict with the federal approach, using federal courts to block state-level enforcement.
- Funding Pressure:
- The Commerce Secretary must review existing state AI laws and identify those considered overly restrictive or inconsistent with federal policy.
- States must comply with federal AI priorities to remain eligible for funding from the Broadband Equity Access and Deployment Program.
- Federal departments can also review discretionary grant programs to condition funding on states avoiding conflicting AI laws.
Motivation and Background
- Industry Lobbying: The directive was championed by David Sacks, the White House AI czar, following months of lobbying from major AI companies, including OpenAI, Google, and Andreessen Horowitz.
- Competitiveness: Industry executives and the administration, including Treasury Secretary Scott Bessent, repeatedly warned that a fragmented regulatory environment (50 different state laws) could overwhelm companies, hinder development, and weaken U.S. competitiveness against China. Nvidia CEO Jensen Huang was among those who raised concerns.
- Consultations: Trump consulted with tech leaders, including Apple CEO Tim Cook, before signing the order.
- Congressional Stalls: The executive order follows the failure of similar federal legislative efforts in Congress, which had opened the door for states to regulate AI on their own.
Path Forward
The order mandates that Dave Sacks, the White House advisor for AI and crypto, and the assistant to the president for science and technology, prepare a legislative proposal for a uniform federal AI framework with Congress, aiming for a "minimally burdensome national standard."
December 2025, Cryptoniteuae